LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 23, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB771 by Harris (Relating to a consumers' guide for
employers regarding health benefit plans.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB771, 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 $(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 *
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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