FISCAL NOTE
Date Requested: February 16, 2018
Time Requested: 03:17 PM |
| Agency: |
Risk and Insurance Management, Board of (BRIM) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2657 |
Introduced |
SB576 |
|
|---|
| CBD Subject: |
Boards and Commissions |
|---|
|
FUND(S):
Patient Injury Compensation Fund
Sources of Revenue:
Other Fund collections
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of the bill is to extend the sunset date of the revenue source of the Patient Injury Compensation Fund by 18 months. Currently, the revenue sources for the Fund will end on June 30, 2020. The proposed language will change the ending date to December 31, 2021.
The Patient Injury Compensation Fund is a program administered by the Board of Risk and Insurance Management (BRIM). In the 2016 Regular Session, the Fund was closed to new claims, and a revenue source was established to address the existing liability (SB 602). The revenue sources established in SB 602 were a $125 additional assessment on license renewal of licensees by the Board of Medicine and Board of Osteopathic Medicine, a $25 assessment per patient treated at a designated trauma center as reported to the West Virginia Trauma Registry, an assessment of 1% of the gross settlement or judgment for cases filed under the Medical Professional Liability Act, and an additional $285 per filing fee paid to the circuit clerk for institution of a medical professional liability action.
When SB 602 was passed in Regular Session 2016, the revenue streams identified were based upon estimated liability upon the closing of the fund on July 1, 2016. As required by SB 602, BRIM filed an annual report on the status of liability and the remaining balance of the fund in December 2017. Based upon claims received at the time the Fund was closed, the actual liability was more than the estimated liability, and the identified revenue sources would be insufficient to cover the actual liability. Because the liability is now essentially fixed, the purpose of the bill is to continue the revenue sources long enough to fully satisfy the liability. Language remains in the bill to cease collection of the revenue sources when the liability is satisfied. The proposed bill would direct any balance remaining in the Fund on June 30, 2022 to the General Revenue Fund.
The proposed legislation will have no fiscal impact BRIM.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| 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):
The proposed legislation will have no effect in FY 2018 or FY 2019.
Memorandum
The proposed bill will have no impact on BRIM.
The bill would extend the sunset date for revenue into the Patient Injury Compensation Fund from June 30, 2020 to December 31, 2021, to ensure the existing liability of the fund is satisfied. Any remaining balance in the Fund will revert to the General Revenue Fund.
The status of the fund and existing liability are described in detail in the annual report prepared by BRIM and provided to the Joint Committee on Government and Finance.
Person submitting Fiscal Note: Jennelle H. Jones
Email Address: jennelle.h.jones@wv.gov