FISCAL NOTE

Date Requested: February 21, 2020
Time Requested: 10:34 AM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
3331 Comm. Sub. HB4543
CBD Subject:


FUND(S):

7152

Sources of Revenue:

Special Fund

Legislation creates:





Fiscal Note Summary


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


    If enacted, House Bill 4543 would cap costs for insulin and provide certain diabetes insurance coverage mandates.
    
    House Bill 4543 will have no significant fiscal impact on the operations, revenues or expenses of the Offices of the Insurance Commissioner.
    
    However, HB 4543 will have an impact on the insurance markets.
    
    The Offices of the Insurance Commissioner consulted with the largest private insurance carriers in West Virginia in order to prepare an estimate of the fiscal impact on the private insurance market.
    
    Please see the memorandum of this fiscal note for additional information.
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2020
Increase/Decrease
(use"-")
2021
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 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):


    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


    House Bill 4543 will have no significant fiscal impact on the operations, revenues or expenses of the Offices of the Insurance Commissioner.
    
    However, HB 4543 will have an impact on the insurance markets.
    
    In order to estimate the fiscal impact on the government funded insurance markets, both the Public Employees Insurance Agency (PEIA) and the Department of Health and Human Resources (DHHR) should be consulted for their input.
    
    The Offices of the Insurance Commissioner (OIC) consulted with the largest private health insurance carriers in West Virginia in order to prepare an estimate of the fiscal impact of HB 4543 on the private insurance market. On a combined basis, these carriers insure 98% of the private insurance market in WV. The carriers estimate that the impact of HB 4543 will result in increased costs of approximately $2 million annually to the private health insurance market in WV.
    
    It should be noted that HB 4543 does not contain language limiting the insurance benefits provided under the bill to the essential health benefits (EHB) specified under section 130(b) of the Patient Protection and Affordable Care Act (PPACA). PPACA 1311 (d)(3) provides that a state must defray the cost by direct payment to enrollees or to the Plan of any state mandated benefit in excess of the EHB. To the extent that the health insurance benefits required by HB 4543 do not fall within the EHB, a potential cost to the State exists.
    



    Person submitting Fiscal Note: Melinda Kiss
    Email Address: Melinda.A.Kiss@wv.gov