LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 16, 2001 TO: Honorable Kim Brimer, Chair, House Committee on Business & Industry FROM: John Keel, Director, Legislative Budget Board IN RE: HB1192 by Brimer (Relating to a gateway doctor pilot program for the provision of medical benefits to certain state employees who sustain compensable injuries.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1192, Committee Report 1st House, Substituted: positive impact * * of $132,966 through the biennium ending August 31, 2003. * * * * 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 * * 2002 $22,007 * * 2003 110,959 * * 2004 142,847 * * 2005 161,852 * * 2006 182,221 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from * * Year General Revenue Fund General Revenue Fund * * 0001 0001 * * 2002 $(14,672) $36,679 * * 2003 (73,973) 184,932 * * 2004 (95,231) 238,078 * * 2005 (107,901) 269,753 * * 2006 (121,481) 303,702 * *************************************************************************** Technology Impact Any technology impact would be provided through current agency resources. Fiscal Analysis This bill would establish a pilot project for using a gateway physician program for state employees incurring compensable injuries on the job. The bill would require State Office of Risk Management (SORM) and the Research and Oversight Council on Workers' Compensation (ROC) to establish the network of gateway physicians by December 1, 2001, as well as the rules and regulations needed to set up the network. SORM and ROC would also determine which state agencies would participate in the pilot project, with agency participation mandated by the bill. ROC would be required to submit a report to the Legislature by February 1st of each odd numbered year on the impact of the pilot project on state workers' compensation costs. The bill would partially implement Comptroller's e-Texas recommendation HHS 19. The bill would take effect September 1, 2001. Methodology ROC would absorb the impact of the study within the agency's current resources. SORM estimates a gross savings of 20 percent from the gateway physician pilot project and a net savings of approximately 12 percent. SORM assumes the fiscal 2000 usage and costs as the baseline for future comparisons of the pilot project's success. The projected costs and savings are based on the actual fiscal 2000 expenditures and claims, allowing for a 7.5 percent growth factor for medical cost increases. The savings from lower workers' compensation reimbursements from agency budgets would depend on the agencies chosen to participate in the pilot project and their respective method of finance. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 478 Research and Oversight Council on Workers' Compensation, 479 State Office of Risk Management, 453 Texas Workers' Compensation Commission LBB Staff: JK, JO, KM, RT