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