TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB1696 by Isett (Relating to the regulation of pharmacy benefit managers and to payment of claims to pharmacies and pharmacists.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2010 | $0 |
2011 | $0 |
2012 | $0 |
2013 | $0 |
2014 | $0 |
Fiscal Year | Probable Revenue Gain from Insurance Maint Tax Fees 8042 |
Probable (Cost) from Insurance Maint Tax Fees 8042 |
Change in Number of State Employees from FY 2009 |
---|---|---|---|
2010 | $237,619 | ($237,619) | 3.0 |
2011 | $223,795 | ($223,795) | 3.0 |
2012 | $223,795 | ($223,795) | 3.0 |
2013 | $223,795 | ($223,795) | 3.0 |
2014 | $223,795 | ($223,795) | 3.0 |
Based on analysis provided by TDI, it is anticipated that 3 full-time-equivalent positions (FTEs) will be required to perform the pharmacy claim dispute investigation, resolution, and appeal process. The 3 FTEs would cost $163,390 for salaries and wages with $46,680 in associated benefits, $7,500 in travel costs, and $6,225 in consumables, telephone, and other operating expenses for each fiscal year of the 2010-11 biennium. Additionally, in fiscal year 2010, $13,824 is anticipated for one-time equipment costs. Since insurance maintenance tax is self-leveling, this analysis assumes the costs to implement this bill would come from fund balances or the maintenance tax would be set to recover a higher level of revenue.
Based on the analysis by TDI, it is assumed that there would be a one-time revenue gain of $1,850 in the General Revenue Dedicated Account Fund 36 in fiscal year 2010 because the bill would result in additional Health Maintenance Organization form filings. 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.
Based on the information provided by the Teacher Retirement System, the bill will have no significant fiscal impact on health plans administered by the agency.
Based on information provided by the
Based on information provided by Employee Retirement System, the bill would result in a decrease in investment income due to the expedited payment process. It is anticipated that the agency can absorb this loss in revenue within the agency's budget.
Based on information provided by SOAH, the bill would result in an increase in hearing requests. The agency indicates that the costs associated with implementing the provisions of the bill could be absorbed within existing resources.
Source Agencies: | 323 Teacher Retirement System, 327 Employees Retirement System, 360 State Office of Administrative Hearings, 454 Department of Insurance, 720 The University of Texas System Administration
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LBB Staff: | JOB, KJG, MW, CH, JW
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