LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session February 16, 2001 TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: John Keel, Director, Legislative Budget Board IN RE: HB760 by Coleman (Relating to health benefit plan coverage for certain physical injuries that are self-inflicted by a minor.), As Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact The bill would require political subdivisions to provide health insurance coverage for medical or surgical expenses to enrollees in the plan between the ages of birth to 18 years for physical injury that is self-inflicted by the enrollee. The coverage would be required regardless if the existing health plan covers mental health or not. The bill would take effect September 1, 2001. The Texas Municipal League reported that if a major incident of this nature were to occur, the impact on the overall risk pool would be for all premiums to be increased. The municipalities pay for the employees' premiums, while employees pay premiums for family members. All premiums would be expected to increase, which would be significant for the political subdivision. The Texas Association of Counties estimates that health insurance premiums would increase by approximately 2 percent and would apply to the policy holder. Depending on whether or not and to what degree a political subdivision pays a portion of its employees' insurance premiums, the subdivisions would experience a negative impact of up to an estimated 2 percent of the premiums currently paid by the subdivision, which would be significant. Source Agencies: 454 Texas Department of Insurance, 327 Employees Retirement System, 701 Texas Education Agency, 781 Texas Higher Education Coordinating Board, 323 Teacher Retirement System LBB Staff: JK, JO, DE, DB