Honorable Eddie Lucio III, Chair, House Committee on Insurance
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB1635 by Miller (Relating to health benefit plan coverage for early childhood intervention services.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1635, As Introduced: an impact of $0 through the biennium ending August 31, 2021.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2020
$0
2021
$0
2022
$0
2023
$0
2024
$0
Fiscal Year
Probable Savings/(Cost) from School Employees UGIP Trust Fund 855
Probable Savings/(Cost) from RETIRED SCHOOL EMP GROUP INSURANCE 989
2020
($22,743,000)
($54,000)
2021
($22,743,000)
($54,000)
2022
($22,743,000)
($54,000)
2023
($22,743,000)
($54,000)
2024
($22,743,000)
($54,000)
Fiscal Analysis
The bill would amend the Insurance Code to require that certain health plans cover rehabilitative and habilitative therapies and related services provided to children by certain certified or licensed professionals, including specialized skills training, applied behavior analysis, and case management. The bill would require the rehabilitative and habilitative therapies and related services to be covered in the amount, duration, scope and service setting established in the child's individualized family service plan. The bill would allow health plans to limit annual coverage for specialized skills training, including case management costs, to $9,000 per year per child.
Methodology
The Teacher Retirement System (TRS) estimates the bill would result in additional claims costs totaling $22,743,000 per year for the ActiveCare program and $54,000 per year for the TRS-Care program. The bill would not amend statutorily required state contribution rates to ActiveCare or TRS-Care, therefore no impact to General Revenue is anticipated. However, additional costs may result in a need for higher contributions to each program by the state, employers, and/or members.
This analysis assumes the provisions of the bill could be implemented by the Texas Department of Insurance and Health and Human Services Commission using existing resources.
Local Government Impact
Additional costs to the TRS-Care and ActiveCare programs may result in a need for higher contributions to each program by public education employers.
Source Agencies:
323 Teacher Retirement System, 454 Department of Insurance, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration