LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 18, 2013 TO: Honorable John T. Smithee, Chair, House Committee On Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1806 by Smithee (Relating to coverage of telemedicine medical services under health benefit plans.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code relating to the coverage of telemedicine medical services under health benefit plans. The bill would update the definition of telemedicine to include a health care service that is provided through the use of advanced telecommunications technology, and would add the definition of a telemedicine provider which would include a physician, physician assistant with the supervision of a physician licensed in this state, or advanced practice nurse also with supervision. The bill would also prohibit health benefit plans from covering telemedicine medical services that do not meet the additional requirements outlined in the bill. The bill would apply to health benefit plans after January 1, 2014. Based on information provided by the Texas Department of Insurance (TDI), it is assumed that any costs associated with the implementation of this bill would be absorbed within existing staff and resources. Also, based on information provided by TDI, this analysis assumes that implementation of the bill would result in an increase in filings in order to disclose the information required and a one-time revenue gain ($62,000 in fiscal year 2014) in General Revenue-Dedicated Texas Department of Insurance Fund 36 from filing fees. Since General Revenue-Dedicated Texas Department of Insurance Fund 36 is a self-leveling account, this analysis also assumes that any additional revenue resulting from the implementation of the bill would accumulate in account fund balances and that the department would adjust the assessment of the maintenance tax or other fees accordingly in the following year. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:454 Department of Insurance LBB Staff: UP, AG, ER, LXH LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION March 18, 2013 TO: Honorable John T. Smithee, Chair, House Committee On Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1806 by Smithee (Relating to coverage of telemedicine medical services under health benefit plans.), As Introduced TO: Honorable John T. Smithee, Chair, House Committee On Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB1806 by Smithee (Relating to coverage of telemedicine medical services under health benefit plans.), As Introduced Honorable John T. Smithee, Chair, House Committee On Insurance Honorable John T. Smithee, Chair, House Committee On Insurance Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB1806 by Smithee (Relating to coverage of telemedicine medical services under health benefit plans.), As Introduced HB1806 by Smithee (Relating to coverage of telemedicine medical services under health benefit plans.), 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 relating to the coverage of telemedicine medical services under health benefit plans. The bill would update the definition of telemedicine to include a health care service that is provided through the use of advanced telecommunications technology, and would add the definition of a telemedicine provider which would include a physician, physician assistant with the supervision of a physician licensed in this state, or advanced practice nurse also with supervision. The bill would also prohibit health benefit plans from covering telemedicine medical services that do not meet the additional requirements outlined in the bill. The bill would apply to health benefit plans after January 1, 2014. Based on information provided by the Texas Department of Insurance (TDI), it is assumed that any costs associated with the implementation of this bill would be absorbed within existing staff and resources. Also, based on information provided by TDI, this analysis assumes that implementation of the bill would result in an increase in filings in order to disclose the information required and a one-time revenue gain ($62,000 in fiscal year 2014) in General Revenue-Dedicated Texas Department of Insurance Fund 36 from filing fees. Since General Revenue-Dedicated Texas Department of Insurance Fund 36 is a self-leveling account, this analysis also assumes that any additional revenue resulting from the implementation of the bill would accumulate in account fund balances and that the department would adjust the assessment of the maintenance tax or other fees accordingly in the following year. 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: UP, AG, ER, LXH UP, AG, ER, LXH