LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

May 8, 2009

TO:	Honorable John T. Smithee, Chair, House Committee on Insurance
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB586 by Carona (Relating to the operation of certain managed care plans regarding out-of-network health care providers.), Committee Report 2nd House, As Amended

No significant fiscal implication to the State is anticipated.

The bill would amend the Insurance Code regarding the operation of certain managed care plans regarding the insured's ability to utilize out-of-network health care providers. Based on the analysis of the Texas Department of Insurance (TDI), it is assumed that there would be a one-time revenue gain of $21,300 in the General Revenue Dedicated Account Fund 36 in fiscal year 2010 because the bill would result in additional form filings 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.

Source Agencies:

454 Department of Insurance

LBB Staff:

JOB, CH, KJG