LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 5, 1999
TO: Honorable David Sibley, Chair, Senate Committee on
Economic Development
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1468 by Harris (Relating to requirements for
collective negotiations by physicians with certain health
benefit plans.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1468, As Introduced: 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. *
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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:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* Texas Department of Texas Department of FY 1999 *
* Insurance Operating Insurance Operating *
* Account/ Account/ *
* GR-Dedicated GR-Dedicated *
* 0036 0036 *
* 2000 $(418,212) $418,212 6.0 *
* 2001 (383,141) 383,141 6.0 *
* 2002 (383,141) 383,141 6.0 *
* 2003 (383,141) 383,141 6.0 *
* 2004 (383,141) 383,141 6.0 *
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Fiscal Analysis
The bill would add Chapter 29 to the Insurance Code providing for
collective negotiation by competing physicians of certain terms and
conditions of contracts with certain health benefit plans. Prior to
engaging in negotiations, a person or organization representing
physicians would be required to file a plan of operation, including the
procedures to be used to ensure compliance with this section, with the
Texas Department of Insurance (TDI). TDI would also be required to
receive reports of all negotiations between physicians and health plans
and to review them for compliance within thirty days of filing.
The bill would also authorize the Commissioner of Insurance to collect
reasonable fees from physician representatives to cover the cost of
administering this program.
Methodology
TDI estimates the need for an additional six FTEs and associated
operating costs to review documents associated with 292 negotiations per
year, and to open an estimated thirty additional enforcement cases per
year.
TDI also estimates the need for additional consultant contracts in 2000
associated with the first year of the program.
Revenues are estimated to allow TDI to recover all costs associated with
this program.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TH, DP