LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

March 19, 2007

TO:	Honorable John T. Smithee, Chair, House Committee on Insurance
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2016 by Smithee (Relating to requirements for certain contracts with physicians and health care providers.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB2016, As Introduced: an impact of $0 through the biennium ending August 31, 2009.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008	$0
2009	$0
2010	$0
2011	$0
2012	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from DEPT INS OPERATING ACCT 36
2008	$2,800
2009	$0
2010	$0
2011	$0
2012	$0

Fiscal Analysis

The bill would amend the Insurance Code regarding certain contracts with physicians and health care providers.

The bill would take effect September 1, 2007.

Methodology

Based on the analysis of Texas Department of Insurance (TDI), it is assumed there would be a one time revenue gain in fiscal year 2008.  TDI estimates an 56 additional health maintenance organizations filings would be filed as a result of the requirements of the bill.  For each of these filings the health maintenance organization would have to pay a $50 filing fee.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

454 Department of Insurance

LBB Staff:

JOB, JRO, MW, SK