TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB1438 by Oliveira (Relating to health benefit plan coverage for certain tests for the early detection of cardiovascular disease.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | $0 |
2009 | ($1,540,372) |
2010 | ($1,599,617) |
2011 | ($1,658,862) |
2012 | ($1,718,107) |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
Probable (Cost) from GR DEDICATED ACCOUNTS 994 |
Probable (Cost) from OTHER SPECIAL STATE FUNDS 998 |
Probable (Cost) from STATE HIGHWAY FUND 6 |
---|---|---|---|---|
2008 | $0 | $0 | $0 | $0 |
2009 | ($1,540,372) | ($80,331) | ($8,067) | ($358,024) |
2010 | ($1,599,617) | ($83,421) | ($8,377) | ($371,795) |
2011 | ($1,658,862) | ($86,511) | ($8,687) | ($385,565) |
2012 | ($1,718,107) | ($89,600) | ($8,998) | ($399,335) |
Fiscal Year | Probable (Cost) from FEDERAL FUNDS 555 |
---|---|
2008 | $0 |
2009 | ($340,465) |
2010 | ($353,560) |
2011 | ($366,655) |
2012 | ($379,750) |
The bill would amend the Insurance Code to require health benefit plans to provide coverage for certain cardiovascular screening medical procedures.
The bill would take effect September 1, 2007, and would only apply to a health benefit plan that is delivered, issued for delivery, or renewed on or after January 1, 2008.
Based on the analysis of the Employees Retirement System of Texas (ERS), it is assumed the bill would require the health benefit plans administered by ERS to expand coverage for cardiovascular screening medical procedures and would result in these health benefit plans incurring costs in the amounts specified in the tables above.
Based on the analysis of the Teacher Retirement System (TRS), it is assumed the bill would increase medical claims in the TRS-ActiveCare plan by an estimated $5.5 million in fiscal year 2008 and in every fifth year following fiscal year 2008 and $55,000 in all other fiscal years. Because the TRS-ActiveCare program is self-funded, the claims increase would have no net fiscal impact on the state, but would result in increases in plan premiums of an estimated $6 to $7 per year per employee.
TRS estimates that the bill would cause an increase in claims in the TRS-Care of $12.9 million in fiscal year 2008 and in every fifth year following fiscal year 2008 and $330,000 in all other fiscal years. To the extent that balances in the TRS-Care trust fund are insufficient to cover these additional costs, premium increases could be necessary.
Based on the analysis the Texas Department of Insurance (TDI), it is assumed that there would be a one-time revenue gain of $25,600 in the General Revenue Dedicated Account Fund 36 in fiscal year 2008 because the bill would result in 256 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. Since General Revenue Dedicated Account Fund 36 is a self-leveling account, no revenue impacts to this account are included in the table above. It is also assumed that any costs that may be realized by TDI from implementing the provisions of the bill could be absorbed within existing resources.
Source Agencies: | 323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance
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LBB Staff: | JOB, JRO, MW, SK
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