LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 11, 2021 TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1296 by Johnson (Relating to the authority of the commissioner of insurance to review and disapprove rates and rate changes for certain health benefit plans.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1296, As Introduced : an impact of $0 through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2022$02023$02024$02025$02026$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromDept Ins Operating Acct36 Probable Revenue Gain/(Loss) fromDept Ins Operating Acct362022($116,234)$116,2342023($114,734)$114,7342024($114,734)$114,7342025($114,734)$114,7342026($114,734)$114,734 Fiscal AnalysisThe bill would amend the Insurance Code relating to the authority of the commissioner of insurance to review and disapprove rates and rate changes for certain health benefit plans. The applicability of the chapter includes association plan rates and requires a process to review rates for compliance and disapprove noncompliant rates.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 11, 2021
TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1296 by Johnson (Relating to the authority of the commissioner of insurance to review and disapprove rates and rate changes for certain health benefit plans.), As Introduced
TO: Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB1296 by Johnson (Relating to the authority of the commissioner of insurance to review and disapprove rates and rate changes for certain health benefit plans.), As Introduced
Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB1296 by Johnson (Relating to the authority of the commissioner of insurance to review and disapprove rates and rate changes for certain health benefit plans.), As Introduced
SB1296 by Johnson (Relating to the authority of the commissioner of insurance to review and disapprove rates and rate changes for certain health benefit plans.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1296, As Introduced : an impact of $0 through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1296, As Introduced : an impact of $0 through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
2022 $0
2023 $0
2024 $0
2025 $0
2026 $0
All Funds, Five-Year Impact:
2022 ($116,234) $116,234
2023 ($114,734) $114,734
2024 ($114,734) $114,734
2025 ($114,734) $114,734
2026 ($114,734) $114,734
Fiscal Analysis
The bill would amend the Insurance Code relating to the authority of the commissioner of insurance to review and disapprove rates and rate changes for certain health benefit plans. The applicability of the chapter includes association plan rates and requires a process to review rates for compliance and disapprove noncompliant rates.
Methodology
Based on information provided by the Texas Department of Insurance (TDI), review of rates for association plans will increase the number of rate filings processed. The agency estimates that the bill would generate 250 new rate filings per year, with an average review time of 8 hours. The bill would result in a cost of $0.1 million in General Revenue-Dedicated Fund 36 per fiscal year and 1.0 FTEs, for an actuary at TDI.Due to the self-leveling nature of the TDI operating account, any additional appropriations made from the account would be considered in the annual adjustment of the maintenance tax rates. Therefore, the overall revenue into the TDI operating account will be equal to the expenses and no net change in fund balance would occur because of this bill.
Technology
There is no anticipated technology impact as a result of implementing this bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 454 Department of Insurance
454 Department of Insurance
LBB Staff: b > td > JMc, SZ, MB, MPUK
JMc, SZ, MB, MPUK