FISCAL NOTE

Date Requested: January 16, 2018
Time Requested: 03:05 PM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
2006 Originating SB299
CBD Subject: Insurance


FUND(S):

PEIA

Sources of Revenue:

Special Fund

Legislation creates:

Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The purpose of this bill is to provide mandatory insurance coverage for medically necessary foods in the treatment of inherited enzymatic disorders. This fiscal note will increase costs for the PEIA plan as this aspect of the treatment is currently not a covered benefit.
    
    A review of PEIA’s claims information over the past three and one half years indicates 60 members with the conditions listed in §5-16-7b (a) of this bill. Research indicates the average cost of medically necessary formula is $225 a month. By applying this average monthly cost to the current population of members with the applicable conditions, PEIA estimates it will assume additional costs of $25,000 in fiscal year 2019, $162,000 in fiscal year 2020 and $171,720 in FY 2021 using an assumed trend of 6%.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 25,000 162,000
Personal Services 0 0 0
Current Expenses 0 25,000 162,000
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.



Memorandum


    Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.



    Person submitting Fiscal Note: jason haught
    Email Address: jason.a.haught@wv.gov