| TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB839 by Eiland (Relating to regulation of the secondary market in certain physician and health care provider discounts; providing administrative penalties.), Committee Report 1st House, Substituted |
The bill would amend the Insurance Code to provide for regulation of entities acting as contracting agents in the secondary market for certain physician discounts. The bill would require the commissioner of insurance to adopt rules as necessary.
Based on the analysis of the Texas Department of Insurance (TDI), it is assumed that there would be a one-time revenue gain of $7,400 in the General Revenue Dedicated Account Fund 36 in fiscal year 2008 because the bill would result in 74 filings, each accompanied by a $100 filing fee. Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes all revenue generated would go toward fund balances or the maintenance tax would be set to recover a lower level of revenue the following year. It is also assumed that any costs realized by TDI from implementing the provisions of the bill could be absorbed within existing resources.
The bill would take effect September 1, 2007.
| Source Agencies: | 454 Department of Insurance, 323 Teacher Retirement System, 327 Employees Retirement System
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| LBB Staff: | JOB, JRO, MW, SK
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