Honorable John T. Smithee, Chair, House Committee on Insurance
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB1370 by Rodriguez (Relating to the use of certain insurance policy forms in connection with a preferred provider benefit plan.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would amend the Insurance Code relating to certain insurance policy forms used by preferred provider benefit plans and the insurance companies coinsurance billing practices.
Based on the analysis of the Texas Department of Insurance (TDI), it is assumed that there would be a one-time revenue gain of $28,900 in the General Revenue Dedicated Account Fund 36 in fiscal year 2010 because the bill would result in additional filed rider endorsements to reflect this change of law by insurers. Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes all general revenue 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.
Local Government Impact
No fiscal implication to units of local government is anticipated.