FISCAL NOTE
Date Requested: February 05, 2019 Time Requested: 02:02 PM |
Agency: |
Insurance Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2863 |
Introduced |
SB489 |
|
CBD Subject: |
Insurance |
---|
|
FUND(S):
7152
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Revenue, Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Senate Bill 489, if enacted, would require the licensure of pharmacy benefit managers by the Insurance Commissioner in order to do business in the State of West Virginia.
The Offices of the Insurance Commissioner (OIC) estimates that two additional FTEs would be required initially to administer the responsibilities of the new licensing requirements.
SB489 also permits the Insurance Commissioner to establish application and license renewal fees in order to offset the cost of the additional administrative responsibilities, so the ultimate impact of SB489 should be revenue neutral.
As the OIC does not know at this time how many PBMs would be seeking licensure by the Insurance Commissioner, it is possible that the actual additional administrative costs and additional revenues generated may vary significantly from the estimate made at the time of this fiscal note.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2019 Increase/Decrease (use"-") |
2020 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
130,820 |
136,511 |
Personal Services |
0 |
113,820 |
119,511 |
Current Expenses |
0 |
10,000 |
10,000 |
Repairs and Alterations |
0 |
0 |
0 |
Assets |
0 |
7,000 |
7,000 |
Other |
0 |
0 |
0 |
2. Estimated Total Revenues |
0 |
130,820 |
136,511 |
Explanation of above estimates (including long-range effect):
The OIC estimates that enactment of SB489 would require the addition of 2 additional FTEs starting at a mid-point base salary of $42,000.
Benefits associated with the additional FTEs are calculated at 35.5%.
Modest increases in the overall costs for the FTEs are included in the estimates for subsequent years to reflect potential increases in insurance, benefits, annual increment, salary advancements, etc…
General overhead costs for space occupancy, education and training have been estimated at $5000 annually per FTE. The purchase of computer equipment and general office furnishings and supplies have been estimated at $3500 per FTE.
The Revenue estimate assumes that the licensing fees established are set at an adequate amount to offset the additional costs incurred.
Memorandum
SB489 would require the Insurance Commissioner to license Pharmacy Benefit Managers (PBMs) doing business in the State of West Virginia.
Senate Bill 489 is designed to be revenue neutral, as the proposed legislation permits the Insurance Commissioner to establish the application and licensing fees in order to offset the administrative costs of implementation.
At this time, the OIC does not know how many PBMs would seek licensure in the State, so the actual additional costs and revenues generated may vary significantly from the estimates made at the time of the filing of this fiscal note.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov