| TO: | Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB3064 by Delisi (Relating to registration and regulation of certain discount health plans; providing penalties.), Committee Report 2nd House, Substituted |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $0 |
| 2009 | $0 |
| 2010 | $0 |
| 2011 | $0 |
| 2012 | $0 |
| Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1 |
Change in Number of State Employees from FY 2007 |
|---|---|---|---|
| 2008 | ($279,824) | $279,824 | 4.0 |
| 2009 | ($254,736) | $254,736 | 4.0 |
| 2010 | ($254,937) | $254,937 | 4.0 |
| 2011 | ($255,055) | $255,055 | 4.0 |
| 2012 | ($255,008) | $255,008 | 4.0 |
The bill would amend the Health and Safety Code relating to discount health care programs. The bill would provide the Department of Licensing and Regulation (TDLR) the authority to register and regulate discount health care programs, including the authority to collect registration fees and provide disciplinary action and penalties. The bill would require that a discount health program to pay TDLR an initial registration fee of no more than $1,000 and an annual renewal fee not to exceed $500. The bill would require a program operator to file any contract modifications with TDLR after initial registration before the contract may be used.
With respect to discount health care programs, the bill would prohibit false or misleading advertising, detail disclosure requirements, detail the duties of the program operator, the marketing of the program, and the contract requirements.
The bill would take effect September 1, 2007.
Based on information provided by TDLR, this analysis assumes that 50 discount health care programs would choose to register with TDLR.
It is estimated that TDLR would have a cost associated with registering and regulating discount health care programs. Based on the analysis of TDLR, it is assumed that registering these programs and regulating this industry would necessitate additional resources at a cost of $534,560 through 2009.
TDLR also estimates costs for staff of $187,248 for 4.0 FTEs in each fiscal year from 2008 through fiscal year 2012. Other operating expenses, travel, and equipment are estimated at $39,604 in fiscal year 2008, $14,516 in fiscal year 2009, $13,967 in fiscal year 2010, $14,717 in fiscal year 2011, and $14,788 in fiscal year 2012. Estimated costs also include $52,972 in each fiscal year from 2008 through fiscal year 2012 for associated benefits.
Although TDLR assumes that $50,000 (50 times $1,000 fee) in revenue would be collected in fiscal year 2008 from the initial registration fee, and $26,000 (2 times $1,000 fee and 48 times $500 fee) in revenue in subsequent years would be collected from the discount health care programs, this analysis assumes that the agency would generate sufficient revenues to cover the total program operation costs.
Based on information provided from the Office of the Attorney General, it is assumed that any costs related to the duties and responsibilities associated with implementing the provisions of the bill could be covered by utilizing existing resources.
| Source Agencies: | 452 Department of Licensing and Regulation, 302 Office of the Attorney General
|
| LBB Staff: | JOB, CL, MW, AH
|