OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6450
AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET
RECOMMENDATIONS CONCERNING PUBLIC HEALTH.
Primary Analyst: CW 3/31/21
Contributing Analyst(s): RDP, MP, PR, ES
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Department of Revenue Services GF - Revenue
Loss
1.3 million 2.5 million
Resources of the Insurance Fund IF - Revenue Loss 462,500 925,000
The Exchange Other - Cost Up to
650,000
650,000
The Exchange Other - Revenue
Gain
Up to
650,000
650,000
Office of Health Strategy GF - Cost
Avoidance
Up to
650,000
650,000
Department of Revenue Services GF - Cost 42,933 88,441
State Comptroller - Fringe
Benefits
1
GF - Cost 17,731 36,526
Mental Health & Addiction Serv.,
Dept.
GF - Cost At least
33,750
At least
77,096
State Comptroller - Fringe
Benefits
GF - Cost At least
13,939
At least
28,950
Note: GF=General Fund; IF=Insurance Fund
Municipal Impact: None
Explanation
The bill, which bans flavored e-cigarette and vapor products, results
in a General Fund revenue loss of $1.3 million in FY 22 (partial year)
and $2.5 million in FY 23 and annually thereafter, as well as the
1
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 41.3% of payroll in FY 22 and FY 23. 2021HB-06450-R000237-FN.DOCX Page 2 of 3
following impacts:
Section 3 results in a cost of at least $33,750 in FY 22 and $70,096 in
FY 23 (with associated fringe benefit costs of $13,939 and $28,950,
respectively) to the Department of Mental Health and Addiction
Services (DMHAS) to support at least one Special Investigator to
comply with the unannounced compliance checks required under the
bill.
Section 3 also results in a cost of $60,664 in FY 22 (partial year
funding) and $124,967 in FY 23, inclusive of fringe benefit costs, for
one Hearings Officer at the Department of Revenue Services.
Section 7 requires the Connecticut Health Insurance Exchange
("Exchange")
2
to fund the All-Payer Claims Database (APCD) through
an agreement with the Office of Health Strategy (OHS),
3
which results
in an annual cost to the Exchange of approximately $650,000 and
eliminates an annual cost to OHS of an identical amount. It also
results in a revenue gain to the Exchange of approximately $650,000
annually, as it is required to increase its assessment on health carriers
or charge them user fees to support the APCD. As this section is
effective 1/1/22, it is unclear if the Exchange will provide full or
partial year funding in FY 22.
Section 8 requires that the Insurance Fund (IF) assessment for OHS
be reduced by the amount of federal Medicaid revenue received by the
state as reimbursement for the agency’s Health Information Exchange
efforts. This results in a reduction to the IF of approximately $462,500
in FY 22 (half-year) and $925,000 in FY 23 (annualized).
The Out Years
The annualized ongoing fiscal impact identified above would
2
The Exchange, also known as Access Health CT, is a quasi-public state agency that
is funded primarily through an assessment on health carriers that are capable of
offering a qualified health plan through the Exchange.
3
Public Act 18-91 transferred responsibility for the APCD from the Exchange to OHS
in 2018. 2021HB-06450-R000237-FN.DOCX Page 3 of 3
continue into the future subject to inflation.
Sources: Centers for Disease Control and Prevention Morbidity and Mortality Weekly
Report 9/18/2020
Testimony of Office of Policy and Management Secretary, Melissa McCaw
US Department of Health and Human Services