LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 8, 2013 TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2657 by Zerwas (Relating to the operation of certain managed care plans with respect to health care providers.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Insurance Code relating to the operation of certain managed care plans with respect to health care providers. The bill would prohibit certain health maintenance organizations or preferred provider benefit plan insurers from terminating a provider for informing an enrollee about or using an out-of-network provider or facility. A preferred provider would be required to provide an insured individual with additional information before making an out-of-network referral. Based on information provided by the Texas Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing 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 and a one-time revenue gain ($2,600 in fiscal year 2014) in General Revenue-Dedicated Texas Department of Insurance Fund 36. 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. Based on information provided by the Teacher Retirement System, Texas A&M University System Administration, and the University of Texas System Administration, the bill would have no fiscal impact to the agencies. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:323 Teacher 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: UP, AG, ER, JW
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 8, 2013
TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2657 by Zerwas (Relating to the operation of certain managed care plans with respect to health care providers.), As Introduced
TO: Honorable John T. Smithee, Chair, House Committee on Insurance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2657 by Zerwas (Relating to the operation of certain managed care plans with respect to health care providers.), 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
HB2657 by Zerwas (Relating to the operation of certain managed care plans with respect to health care providers.), As Introduced
HB2657 by Zerwas (Relating to the operation of certain managed care plans with respect to 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 relating to the operation of certain managed care plans with respect to health care providers. The bill would prohibit certain health maintenance organizations or preferred provider benefit plan insurers from terminating a provider for informing an enrollee about or using an out-of-network provider or facility. A preferred provider would be required to provide an insured individual with additional information before making an out-of-network referral. Based on information provided by the Texas Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing 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 and a one-time revenue gain ($2,600 in fiscal year 2014) in General Revenue-Dedicated Texas Department of Insurance Fund 36. 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. Based on information provided by the Teacher Retirement System, Texas A&M University System Administration, and the University of Texas System Administration, the bill would have no fiscal impact to the agencies.
The bill would amend the Insurance Code relating to the operation of certain managed care plans with respect to health care providers. The bill would prohibit certain health maintenance organizations or preferred provider benefit plan insurers from terminating a provider for informing an enrollee about or using an out-of-network provider or facility. A preferred provider would be required to provide an insured individual with additional information before making an out-of-network referral.
Based on information provided by the Texas Department of Insurance, it is assumed that all duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing 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 and a one-time revenue gain ($2,600 in fiscal year 2014) in General Revenue-Dedicated Texas Department of Insurance Fund 36. 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.
Based on information provided by the Teacher Retirement System, Texas A&M University System Administration, and the University of Texas System Administration, the bill would have no fiscal impact to the agencies.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 323 Teacher 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, 454 Department of Insurance, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration
LBB Staff: UP, AG, ER, JW
UP, AG, ER, JW