FISCAL NOTE
Date Requested: January 19, 2016 Time Requested: 11:32 AM |
Agency: |
Public Employees Insurance Agency (PEIA) |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
1851 |
Introduced |
SB320 |
|
CBD Subject: |
Health, Professions and Occupations |
---|
|
FUND(S):
2180
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to authorize the practice of ‘telemedicine’ in WV. With passage of this bill, PEIA intends to include telemedicine in the plan’s benefits. The planned benefit design will result in savings to the plan due to lower reimbursement rates for telemedicine than would be paid for a regular physician office visit. This fiscal note assumes implementation of telemedicine with 2% utilization in FY ‘17, 4% utilization in FY ’18 and 6% utilization in FY ’19. The plan reimbursement will be $40 per telemedicine claim.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2016 Increase/Decrease (use"-") |
2017 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
0 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
-1,048,749 |
-1,048,749 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
0 |
0 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
This fiscal note assumes implementation of telemedicine with 2% utilization in FY ‘17, 4% utilization in FY ’18 and 6% utilization in FY ’19. The plan reimbursement will be $40 per telemedicine claim with a $40 copay. This note also assumes the cost of a regular office visit will increase 3% per year, increasing savings in the future.
Year 1 '17 Year 2 '18 Year 3 '19
Savings Savings Savings Savings Total
$1,048,748.76 $2,158,567.89 $3,329,500.36 $6,536,817.01
Memorandum
Person submitting Fiscal Note: Jason Haught
Email Address: jason.a.haught@wv.gov