LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 26, 2001
TO: Honorable John T. Smithee, Chair, House Committee on
Insurance
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1704 by Smithee (Relating to the establishment and
operation of a task force to examine issues regarding
expansion of the provision of health benefits to
employees of small businesses.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1704, As Introduced: positive impact of $0 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 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 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 2001 *
* Insurance Operating Insurance Operating *
* Fund Account/ Fund Account/ *
* GR-Dedicated GR-Dedicated *
* 0036 0036 *
* 2002 $(191,192) $191,192 3.0 *
* 2003 (114,575) 114,575 2.3 *
* 2004 0 0 0.0 *
* 2005 0 0 0.0 *
* 2006 0 0 0.0 *
**************************************************************************
Fiscal Analysis
The bill would establish a task force to examine issues concerning
improving the availability of health benefits coverage to employees of
small businesses. The bill directs the 6 person task force to examine
the operation of small employer health benefit plans established under
Chapter 26, Texas Insurance Code, and the Texas Health Insurance Risk
Pool established under Article 3.77, Texas Insurance Code. The
provisions of the bill require the Texas Department of Insurance (TDI)
to provide administrative support and services to the task force. The
task force is required to make its recommendations to TDI by September
1, 2002 and to submit a written report to the governor, lieutenant
governor, and speaker of the house by December 1, 2002. The Act and the
task force created by the provisions of the bill would expire on June 1,
2003.
Methodology
TDI estimates it would require three FTEs in the first year and two and a
quarter FTEs the second year to implement the provisions of the bill.
The administrative duties would include collecting data from insurers,
health maintenance organizations (HMOs), small employers, the Texas
Health Insurance Risk Pool, insured and uninsured employees and other
sources, and analyzing the data, compiling the results, providing the
task force with technical advice in developing its recommendations and
assisting in drafting the report.
According to TDI, it would require two FTEs in fiscal year 2002 and one
and a half FTEs in fiscal year 2003. TDI may need to contract with an
external consultant for data on health plan coverages and utilization
data at an estimated one-time cost of $40,000 in fiscal year 2002.
The task force would rely on legal staff to provide extensive analysis of
state and federal laws regarding the provision of health benefits to
employees, and identify changes to existing law that would result in the
extension of health benefits to more employees of small businesses in
this state. TDI estimates that it will need to provide at least one
full-time attorney in fiscal year 2002 and three quarters of an FTE in
fiscal year 2003.
It is assumed that any costs associated with implementing the provisions
of the bill would be offset by an increase in additional fees and or
rate assessments.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 454 Texas Department of Insurance
LBB Staff: JK, JO, RT, DE