TO: | Honorable Robert Duncan, Chair, Senate Committee on State Affairs |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB714 by Van de Putte (Relating to regulation of the secondary market in certain physician and health care provider discounts; providing administrative penalties.), 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 Savings/(Cost) from Dept Ins Operating Acct 36 |
Probable Revenue Gain/(Loss) from Dept Ins Operating Acct 36 |
Change in Number of State Employees from FY 2009 |
---|---|---|---|
2010 | ($229,955) | $229,955 | 3.0 |
2011 | ($215,956) | $215,956 | 3.0 |
2012 | ($215,956) | $215,956 | 3.0 |
2013 | ($215,956) | $215,956 | 3.0 |
2014 | ($215,956) | $215,956 | 3.0 |
The bill would amend the Insurance Code to provide for regulation of entities acting as contracting agents in the secondary market for certain physician discounts. The bill would also require the commissioner of insurance to adopt rules as necessary.
The bill would take effect September 1, 2009 and would only apply to contracts entered into or renewed on or after January 1, 2010.
Based on analysis from TDI, it is assumed costs for implementing this bill would include salaries for an additional 3 full-time-equivalent positions (FTEs) in the amount of $163,126 each fiscal year (FY), with associated benefit costs of $46,605. The FTEs would investigate complaints and propose rules for the regulation of discount brokers. One-time equipment costs in FY 2010 would be $13,999. It is assumed other operating expenses to include telephone and consumable supplies would be $6,225 each fiscal year.
Since General Revenue Dedicated Account Fund 36 is a self-leveling account, 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.
Source Agencies: | 454 Department of Insurance
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LBB Staff: | JOB, KJG, MW, CH
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