TO: | Honorable Robert Duncan, Chair, Senate Committee on State Affairs |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | SB1516 by Deuell (Relating to the adequacy of health maintenance organization health care delivery networks and availability of preferred provider benefits; providing penalties.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | ($3,267,221) |
2007 | ($3,344,730) |
2008 | ($3,344,730) |
2009 | ($3,344,730) |
2010 | ($3,344,730) |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
Probable (Cost) from GR MATCH FOR TITLE XXI 8010 |
Probable (Cost) from FEDERAL FUNDS 555 |
---|---|---|---|
2006 | ($701,962) | ($2,565,259) | ($6,752,789) |
2007 | ($715,757) | ($2,628,973) | ($6,872,195) |
2008 | ($715,757) | ($2,628,973) | ($6,872,195) |
2009 | ($715,757) | ($2,628,973) | ($6,872,195) |
2010 | ($715,757) | ($2,628,973) | ($6,872,195) |
HHSC estimates the bill would result in a 4.5 percent increase, on average, in HMO premium expenditures. It is assumed that HMO expenditures would represent the same percentage of total CHIP expenditures as in fiscal year 2005. Based on these assumptions, the General Revenue cost is estimated to be $3,267,221 in fiscal year 2006 and $3,344,730 in fiscal year 2007. HMO premium expenditures used for the estimate do not include costs for prescription, dental, or vision benefits.
The changes made by the bill would apply only to a health insurance policy or evidence of coverage issued or renewed on or after the effective date of the bill (September 1, 2005). It is assumed that the changes made by the bill would impact CHIP HMOs beginning in fiscal year 2006.
Source Agencies: | 454 Department of Insurance, 503 Board of Medical Examiners, 529 Health and Human Services Commission
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LBB Staff: | JOB, SR, JRO, NV, KF, SSt
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