Date Requested: January 15, 2015
Time Requested: 07:01 PM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
1481 Introduced SB84
CBD Subject: Health



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 Offices of the Insurance Commissioner estimates that SB84 would increase OIC revenues by an estimated $18,000 and would also increase expenses by an estimated $53,900 if enacted.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 0 0
Personal Services 53,400 54,400 55,000
Current Expenses 500 500 500
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 18,000 18,000 18,000

Explanation of above estimates (including long-range effect):

    The Offices of the Insurance Commissioner (OIC) estimates that the enactment of SB84 would require the addition of one full time employee (FTE) starting at a base salary of $40,000. Benefits associated with the additional FTE are calculated at 33.5% of the base salary.
    ($40,000 x .335 = $13,400) for total initial increase in personal service expense of $53,400.
    Modest increases in the overall costs for the FTE are included in the estimates for subsequent years to reflect potential increased insurance, benefits, annual increment, salary advancement, etc...).
    $500 in annual overhead costs associated with the FTE have also been included.
    The additional revenue generated by the passage of SB84 is estimated to be approximately $18,000 annually. This estimate assumes the registration of 90 additional PBMs in WV at a registration fee of $200 each.
    ($200 x 90 = $18,000).


    To summarize the fiscal impact of the enactment of SB84, the OIC estimates an increase in both revenue and expense to OIC Fund 7152.
    Revenues would increase an estimated $18,000 due to increased registration fees from the PBMs registering to do business in WV.
    Expenses would also increase an estimated $53,900 due to the addition of one full time employee to oversee the registration of PBMs.

    Person submitting Fiscal Note: Melinda Kiss
    Email Address: