LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 25, 2025 TO: Honorable Jay Dean, Chair, House Committee on Insurance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1818 by Vo (Relating to examinations of health maintenance organizations and insurers by the commissioner of insurance regarding compliance with certain utilization review and preauthorization requirements; authorizing a fee.), As Introduced The fiscal implications of the bill cannot be determined as the potential fee assessment and the effect on capitation rates for Medicaid and Children's Health Insurance Plan managed care organizations cannot be estimated. This bill would amend the Insurance Code to require annual examinations of health maintenance organizations and insurers by the Commissioner of Insurance regarding compliance with certain utilization review and preauthorization requirements. This bill authorizes a fee.According to the Health and Human Services Commission, the bill could increase administrative costs for Medicaid and Children's Health Insurance Plan managed care organizations, however the fiscal implications cannot be determined because the potential fee and its effect on capitation rates cannot be estimated.Based on the analysis of the Teacher Retirement System of Texas, Employees Retirement System, Department of Insurance, Texas A&M University System Administrative & General Offices, and the University of Texas System Administration, any duties and responsibilities associated with implementing the provisions of the bill could be accomplished by the agencies utilizing existing resources. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts, 454 Department of Insurance, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration LBB Staff: b > td > JMc, AAL, GDZ, BFa
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 25, 2025
TO: Honorable Jay Dean, Chair, House Committee on Insurance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1818 by Vo (Relating to examinations of health maintenance organizations and insurers by the commissioner of insurance regarding compliance with certain utilization review and preauthorization requirements; authorizing a fee.), As Introduced
TO: Honorable Jay Dean, Chair, House Committee on Insurance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1818 by Vo (Relating to examinations of health maintenance organizations and insurers by the commissioner of insurance regarding compliance with certain utilization review and preauthorization requirements; authorizing a fee.), As Introduced
Honorable Jay Dean, Chair, House Committee on Insurance
Honorable Jay Dean, Chair, House Committee on Insurance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1818 by Vo (Relating to examinations of health maintenance organizations and insurers by the commissioner of insurance regarding compliance with certain utilization review and preauthorization requirements; authorizing a fee.), As Introduced
HB1818 by Vo (Relating to examinations of health maintenance organizations and insurers by the commissioner of insurance regarding compliance with certain utilization review and preauthorization requirements; authorizing a fee.), As Introduced
The fiscal implications of the bill cannot be determined as the potential fee assessment and the effect on capitation rates for Medicaid and Children's Health Insurance Plan managed care organizations cannot be estimated.
The fiscal implications of the bill cannot be determined as the potential fee assessment and the effect on capitation rates for Medicaid and Children's Health Insurance Plan managed care organizations cannot be estimated.
This bill would amend the Insurance Code to require annual examinations of health maintenance organizations and insurers by the Commissioner of Insurance regarding compliance with certain utilization review and preauthorization requirements. This bill authorizes a fee.According to the Health and Human Services Commission, the bill could increase administrative costs for Medicaid and Children's Health Insurance Plan managed care organizations, however the fiscal implications cannot be determined because the potential fee and its effect on capitation rates cannot be estimated.Based on the analysis of the Teacher Retirement System of Texas, Employees Retirement System, Department of Insurance, Texas A&M University System Administrative & General Offices, and the University of Texas System Administration, any duties and responsibilities associated with implementing the provisions of the bill could be accomplished by the agencies utilizing existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 454 Department of Insurance, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration
304 Comptroller of Public Accounts, 454 Department of Insurance, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration
LBB Staff: b > td > JMc, AAL, GDZ, BFa
JMc, AAL, GDZ, BFa