Honorable Eddie Lucio III, Chair, House Committee on Insurance
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB3911 by Vo (relating to the examination by the commissioner of insurance of certain insurers' network quality and adequacy.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
The bill would amend the Insurance Code relating to the examination by the Commissioner of Insurance of certain insurers' network quality and adequacy. The bill would require the Texas Department of Insurance (TDI) to examine an insurer's network used by a preferred and exclusive provider benefit plan for quality and adequacy at least once every three years.
TDI is required to collect an assessment to cover all expenses for the examination of network adequacy. Under the provisions of the bill, TDI is required to deposit an assessment to the TDI local operating account used by the self-directed, semi-independent (SDSI) division of TDI. This analysis assumes that implementation of the bill would be through the Actuarial Office and Financial Examinations SDSI division.
As a self-funding, self-leveling division, the Actuarial Office and Financial Examinations division is required to collect revenues sufficient to cover its costs, so that any additional costs incurred in implementing the provisions of the bill would be offset by an equal amount of revenue.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Local Government Impact
No fiscal implication to units of local government is anticipated.