LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 25, 2009 TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1290 by Oliveira (Relating to health benefit plan coverage for certain tests for the early detection of cardiovascular disease.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code to require certain health plans to provide minimum required coverage of up to $200 every five years for early detection screening tests of cardiovascular disease. The bill would take effect September 1, 2009, and would apply to all health plans delivered or renewed on or after January 1, 2010. The University of Texas System Administration indicates that there would be some cost to implement the provisions of the bill, but the costs are expected to be absorbed within the agencys existing budget. It is assumed that any costs realized by the Employee Retirement System, Teachers Retirement System, and Texas A&M System Administration from implementing the provisions of the bill could be absorbed within existing resources. The Texas Department of Insurance (TDI) indicates that there would be a one-time revenue gain of $40,900 in the General Revenue Dedicated Account Fund 36 in fiscal year 2010 because the bill would result in filings of amendments to reflect this change of law by insurers. Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes all revenue would go toward fund balances or the maintenance tax would be set to recover a lower level of revenue the following year. It is also assumed that any costs realized by TDI from implementing the provisions of the bill could be absorbed within existing resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration LBB Staff: JOB, KJG, MW, CH LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 25, 2009 TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB1290 by Oliveira (Relating to health benefit plan coverage for certain tests for the early detection of cardiovascular disease.), Committee Report 1st House, Substituted TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB1290 by Oliveira (Relating to health benefit plan coverage for certain tests for the early detection of cardiovascular disease.), Committee Report 1st House, Substituted Honorable John T. Smithee, Chair, House Committee on Insurance Honorable John T. Smithee, Chair, House Committee on Insurance John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB1290 by Oliveira (Relating to health benefit plan coverage for certain tests for the early detection of cardiovascular disease.), Committee Report 1st House, Substituted HB1290 by Oliveira (Relating to health benefit plan coverage for certain tests for the early detection of cardiovascular disease.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code to require certain health plans to provide minimum required coverage of up to $200 every five years for early detection screening tests of cardiovascular disease. The bill would take effect September 1, 2009, and would apply to all health plans delivered or renewed on or after January 1, 2010. The University of Texas System Administration indicates that there would be some cost to implement the provisions of the bill, but the costs are expected to be absorbed within the agencys existing budget. It is assumed that any costs realized by the Employee Retirement System, Teachers Retirement System, and Texas A&M System Administration from implementing the provisions of the bill could be absorbed within existing resources. The Texas Department of Insurance (TDI) indicates that there would be a one-time revenue gain of $40,900 in the General Revenue Dedicated Account Fund 36 in fiscal year 2010 because the bill would result in filings of amendments to reflect this change of law by insurers. Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes all revenue would go toward fund balances or the maintenance tax would be set to recover a lower level of revenue the following year. It is also assumed that any costs realized by TDI from implementing the provisions of the bill could be absorbed within existing resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration 323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration LBB Staff: JOB, KJG, MW, CH JOB, KJG, MW, CH