LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 24, 2009 TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB586 by Carona (Relating to the operation of certain managed care plans regarding out-of-network health care providers.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code to regarding the operation of certain managed care plans regarding the insured's ability to utilize out-of-network health care providers. Based on the analysis of the Texas Department of Insurance (TDI), it is assumed that there would be a one-time revenue gain of $21,300 in the General Revenue Dedicated Account Fund 36 in fiscal year 2010 because the bill would result in additional form filings to reflect this change of law by insurers. Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes all general 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:454 Department of Insurance LBB Staff: JOB, CH, KJG
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
March 24, 2009
TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB586 by Carona (Relating to the operation of certain managed care plans regarding out-of-network health care providers.), As Introduced
TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB586 by Carona (Relating to the operation of certain managed care plans regarding out-of-network health care providers.), As Introduced
Honorable Robert Duncan, Chair, Senate Committee on State Affairs
Honorable Robert Duncan, Chair, Senate Committee on State Affairs
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB586 by Carona (Relating to the operation of certain managed care plans regarding out-of-network health care providers.), As Introduced
SB586 by Carona (Relating to the operation of certain managed care plans regarding out-of-network health care providers.), As Introduced
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 regarding the operation of certain managed care plans regarding the insured's ability to utilize out-of-network health care providers. Based on the analysis of the Texas Department of Insurance (TDI), it is assumed that there would be a one-time revenue gain of $21,300 in the General Revenue Dedicated Account Fund 36 in fiscal year 2010 because the bill would result in additional form filings to reflect this change of law by insurers. Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes all general 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.
The bill would amend the Insurance Code to regarding the operation of certain managed care plans regarding the insured's ability to utilize out-of-network health care providers. Based on the analysis of the Texas Department of Insurance (TDI), it is assumed that there would be a one-time revenue gain of $21,300 in the General Revenue Dedicated Account Fund 36 in fiscal year 2010 because the bill would result in additional form filings to reflect this change of law by insurers.
Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes all general 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: 454 Department of Insurance
454 Department of Insurance
LBB Staff: JOB, CH, KJG
JOB, CH, KJG