LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 7, 2001 TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: John Keel, Director, Legislative Budget Board IN RE: SB771 by Harris (Relating to a consumers' guide for employers regarding health benefit plans.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB771, As Engrossed: 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. * ************************************************************************** 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: ************************************************************************** *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 $(122,199) $122,199 2.0 * * 2003 (84,278) 84,278 1.5 * * 2004 (84,278) 84,278 1.5 * * 2005 (84,278) 84,278 1.5 * * 2006 (84,278) 84,278 1.5 * ************************************************************************** Technology Impact Computers and software for the two additional Full-time Equivalent positions (FTEs) totaling $5,398 in fiscal year 2002. Fiscal Analysis The bill would add an article to Chapter 26, Insurance Code requiring the Texas Department of Insurance (TDI), in consultation with the Office of Public Insurance Counsel, to produce an annual consumers' guide to assist employers in comparing coverage, benefits and rates under different types of employer health benefit plans. The guide must describe the different types of plans available and allow comparison of coverage and benefits offered under each type in relation to the premium rates typically charged for each type. The guide could also contain such other information the Commissioner of Insurance determines would assist employers in assessing such plans. The Commissioner would receive broad rule-making authority to implement these requirements. The bill would take effect immediately if it receives two-thirds votes in both houses. If the required votes are not received then the effective date would be September 1, 2001. Methodology TDI estimates that it would require two FTEs in fiscal year 2002 that include an attorney and a program administrator. It would require a part-time attorney and a program administrator in subsequent years. The attorney would have to work with other TDI programs to propose and adopt a rule enabling the TDI to gather the information necessary to publish the guide. TDI would need to gather information from over 100 carriers offering health benefit plans to small and large employers in Texas. TDI anticipates considerable internal study prior to the proposal of a rule implementing the provisions of the bill. Based on experience, TDI anticipates that the data needed for this type of guide would be best presented in a database available for on-line querying via an interactive Internet site. TDI estimates needing one program administrator FTE who will assist in information gathering and be responsible for updating the website and will report to the manager who supervises current staff. TDI anticipates receiving approximately 7,200 hits on the website per year. It is assumed that TDI would adjust its fees to cover the cost of implementing the bill. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 359 Office of Public Insurance Counsel, 454 Texas Department of Insurance LBB Staff: JK, JO, RT, DE