LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 20, 2017 TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1649 by Muñoz, Jr. (Relating to the use of extrapolation by a health maintenance organization or an insurer to audit claims.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would prohibit health maintenance organizations and insurers operating preferred provider benefit plans from using extrapolation to complete audits of participating providers. The bill would exempt Medicaid and the Children's Health Insurance Program. Based on information provided by the Texas Department of Insurance and Texas Medical Board, this analysis assumes the duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:454 Department of Insurance, 503 Texas Medical Board, 529 Health and Human Services Commission LBB Staff: UP, CL, LR, AG, EH, CP, KCA, TBo LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 20, 2017 TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1649 by Muñoz, Jr. (Relating to the use of extrapolation by a health maintenance organization or an insurer to audit claims.), As Engrossed TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB1649 by Muñoz, Jr. (Relating to the use of extrapolation by a health maintenance organization or an insurer to audit claims.), As Engrossed Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB1649 by Muñoz, Jr. (Relating to the use of extrapolation by a health maintenance organization or an insurer to audit claims.), As Engrossed HB1649 by Muñoz, Jr. (Relating to the use of extrapolation by a health maintenance organization or an insurer to audit claims.), As Engrossed No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would prohibit health maintenance organizations and insurers operating preferred provider benefit plans from using extrapolation to complete audits of participating providers. The bill would exempt Medicaid and the Children's Health Insurance Program. Based on information provided by the Texas Department of Insurance and Texas Medical Board, this analysis assumes the duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 454 Department of Insurance, 503 Texas Medical Board, 529 Health and Human Services Commission 454 Department of Insurance, 503 Texas Medical Board, 529 Health and Human Services Commission LBB Staff: UP, CL, LR, AG, EH, CP, KCA, TBo UP, CL, LR, AG, EH, CP, KCA, TBo