LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
Revision 1
April 21, 1999
TO: Honorable Jane Nelson, Chair, Senate Committee on Health
Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB377 by Nelson (Relating to review and implementation
of health care benefits required to be provided under
certain health benefit plans), Committee Report 1st
House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB377, Committee Report 1st House, Substituted: positive impact *
* of $0 through the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from General Revenue Fund *
* 0001 0001 *
* 2000 $(750,000) $750,000 *
* 2001 (350,000) 350,000 *
* 2002 (200,000) 200,000 *
* 2003 (350,000) 350,000 *
* 2004 (200,000) 200,000 *
***************************************************************************
Fiscal Analysis
The bill would amend the Insurance Code to require the Comptroller to
analyze existing and proposed health care mandates under certain
conditions and to impose an assessment against writers of health care
benefit plans to cover the expenses incurred in conducting such analyses.
The Governor, Lieutenant Governor, Speaker of the House of
Representatives, or a presiding officer of a standing legislative
committee could request that the Comptroller provide a detailed analysis
of any existing or proposed health care benefit mandate.
The bill would also require the Comptroller to review and analyze each
health care benefit mandate that will be in effect on January 1, 2001.
The report would have to be published on the Internet and issued to the
Governor, the Lieutenant Governor, the Speaker, and the Commissioner of
Insurance.
To cover expenses incurred, the Comptroller would be authorized to
collect an assessment on an annual, semi-annual, or other periodic basis
from all entities selling health benefit plan coverage in the state. The
assessment would have to be based on annual statements and other reports
filed with the Texas Department of Insurance. It would be imposed in
proportion to each entity's gross premium collections in the preceding
calendar year to all gross written premiums written in the state in the
preceding calendar year. Medicare supplement premiums subject to Article
3.74 would not be included in the calculation. This provision would
expire September 1, 2003.
The bill would take effect September 1, 1999.
Methodology
The Comptroller's Office assumes that the report relating to health care
benefit mandates in effect on January 1, 2001 would be conducted in its
entirety in calendar 2000. Estimated costs for 2001 through 2004 reflect
ongoing analysis of health care benefit mandates. Annual costs in 2002
and 2004 reflect an estimated decrease in legislative requests for
analyses during these years.
The Comptroller's Office assumes an assessment would be calculated on or
before January 1 of 2000 through 2003 to fall due on March 1 each year,
concurrent with other Comptroller-levied insurance taxes. Because the
bill would prohibit the Comptroller from levying assessments after
September 1, 2003, no revenues would accrue in fiscal 2004 or thereafter
to defray the Comptroller's costs incurred in calendar 2004 and
thereafter.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, TP, BB, DP