LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 13, 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 physician pilot
program for the provision of medical benefits to certain
state employees who sustain compensable injuries.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1192, As Introduced: 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. *
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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 *
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All Funds, Five-Year Impact:
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*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 *
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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