FISCAL NOTE

Date Requested: January 24, 2019
Time Requested: 01:28 PM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
2599 Introduced HB2649
CBD Subject: Insurance -- Health, Military Affairs


FUND(S):

PEIA Basic Insurance

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Expense



Fiscal Note Summary


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


    The purpose of this bill is to make active and inactive military members eligible for the PEIA plan as employees.
    
    The population of this fiscal note is all active armed forces, reserve forces and national guard currently in WV, increased by a factor of 250% to account for inactive personnel. This number is then multiplied by 50% for the percentage that would accept PEIA. This is performed due to active personnel are covered by the federal insurance Tricare and some inactive personnel may already have insurance coverage. There are currently 8,350 active personnel in WV. Applying the above adjustments to this number results in a final assumption of 14,613 new policies in PEIA.
    
    The bill creates a new class of employee but doesn’t indicate an employer, or who will pay the employer premiums for these newly eligible members. This fiscal note assumes the State of WV will assume these costs at 80% per WV §5-16. The current per employee claim cost of $699 has been applied to the new policies and trended at 6% per year.
    
    This will result in additional health costs to the state of $104 million in FY 2020.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 104,000,000 0
Personal Services 0 0 0
Current Expenses 0 104,000,000 0
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):


    The population of this fiscal note is all active armed forces, reserve forces and national guard currently in WV, increased by a factor of 250% to account for inactive personnel. This number is then multiplied by 50% for the percentage that would accept PEIA. This is performed due to active personnel are covered by the federal insurance Tricare and some inactive personnel may already have insurance coverage. There are currently 8,350 active personnel in WV. Applying the above adjustments to this number results in a final assumption of 14,613 new policies in PEIA.
    
    The bill creates a new class of employee but doesn’t indicate an employer, or who will pay the employer premiums for these newly eligible members. This fiscal note assumes the State of WV will assume these costs at 80% per WV §5-16. The current per employee claim cost of $699 has been applied to the new policies and trended at 6% per year.
    
    This will result in additional health costs to the state of $104 million in FY 2020.
    



Memorandum


    The bill creates a new class of employee but doesn’t indicate an employer, or who will pay the employer premiums for these newly eligible members. This fiscal note assumes the State of WV will assume these costs at 80% per WV §5-16. The current per employee claim cost of $699 has been applied to the new policies and trended at 6% per year.



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