LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 18, 2001
TO: Honorable John T. Smithee, Chair, House Committee on
Insurance
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2828 by Smithee (Relating to delegation of certain
functions by a health maintenance organization; providing
penalties.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2828, 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 $(378,151) $378,151 9.0 *
* 2003 (328,257) 328,257 9.0 *
* 2004 (328,257) 328,257 9.0 *
* 2005 (328,257) 328,257 9.0 *
* 2006 (328,257) 328,257 9.0 *
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Technology Impact
Additional computers, software and a fax machine for nine Full-time
equivalent positions (FTEs) totaling $24,291 in fiscal year 2002.
Fiscal Analysis
The bill amends the Insurance Code which requires Health Maintenance
Organizations (HMOs) to give the Texas Department of Insurance (TDI)
copies of each complaint the HMOs receive. It directs TDI to
periodically issue a report on the complaint data provided by HMOs and
requires TDI to adopt a rule to insure that the information HMOs are
required to give delegated networks is complete, accurate, and provided
in a timely manner.
The effective date of the bill is September 1, 2001.
Methodology
TDI estimates that it would require a total of nine additional FTEs. For
calendar year 1999 (the last year for which complete data is available)
HMOs reported to TDI that they received a total of 70,565 complaints.
TDI estimates that it would require eight insurance technicians to enter
an estimated 70,565 complaints per year based on each technician
entering 8,500 complaints per year. TDI also estimates that it would
need one program administrator to supervise the data entry staff,
develop the tracking system and reports, and resolve any disputes over
the categorization of complaints and other issues that may arise with
complaints sent in by HMOs.
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