FISCAL NOTE
Date Requested: January 19, 2022
Time Requested: 09:18 AM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2034 |
Introduced |
SB418 |
|
|---|
| CBD Subject: |
Insurance |
|---|
|
FUND(S):
7152 Insurance Commission Fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Senate Bill 418, if enacted, would remove the Public Employees Insurance Agency (PEIA) exemption from the provisions of §33-46-18 and §5-16-22. The removal of the exemption would make PEIA subject to provisions of the insurance code.
The Offices of the Insurance Commissioner (OIC) estimates that assuming regulation of PEIA would create an additional $780,630 in expenses for the OIC.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2022
Increase/Decrease
(use"-") |
2023
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
780,630 |
780,630 |
780,630 |
| Personal Services |
280,630 |
280,630 |
280,630 |
| Current Expenses |
500,000 |
500,000 |
500,000 |
| 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 enactment of SB 418 would remove the exemption of PEIA from insurance regulation.
The OIC estimates that 4 additional employees and contracted professional insurance market conduct examination and actuarial services would be needed due to SB 418.
Position Salary Benefits & Office Overhead Total Cost
Examiner $54,665 $20,772 $75,438
Attorney II $58,690 $22,302 $80,992
Complaint Spt. $45,000 $17,100 $62,100
Complaint Spt. $45,000 $17,100 $62,100
Total salaries, benefits and overhead $280,630
Contractual and Professional Services related to insurance regulation
$500,000
Estimated Costs to OIC for implementation of SB418 $780,630
Memorandum
The Offices of the Insurance Commissioner (OIC) estimates that the enactment of Senate Bill 418 would increase the operating expenses of the OIC by approximately $780,630 annually.
OIC data shows that in 2021 there were 278,162 peopled covered by commercial health insurance in WV and 239,540 active PEIA insured, so the OIC would need to add 4 additional full time employees and increase contracted professional services in order to provide insurance regulation to PEIA and services to their insured.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov