FISCAL NOTE

Date Requested: February 16, 2016
Time Requested: 12:29 PM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
2681 Introduced HB4543
CBD Subject: Insurance


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.


    This purpose of this bill is to provide the Public Employees Insurance Agency the ability to recover through administrative proceeding benefits or claims obtained through fraud, provide a penalty for such fraud, and to authorize the agency to issue administrative subpoenas to aid in the investigation of fraudulent activity and recovery of funds. During the normal course of business, PEIA may encounter fraudulent activities that require recovery efforts and, or referral to appropriate authorities for prosecution.
    
    This bill will allow PEIA to conduct administrative hearings internally and issue subpoenas in the recovery of funds obtained fraudulently. This will lower the administrative costs incurred by PEIA and increase recoveries through the more efficient internal process. The ability of PEIA to administer such matters internally will also reduce future fraudulent behavior as members will be less likely to attempt it due to the sentinel effect. A recent eligibility audit has resulted in approximately $2 million in potential claim recovery. PEIA is confident passage of this bill would result in a much higher rate of recovery in similar issues.
    
    



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 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):


    



Memorandum


    



    Person submitting Fiscal Note: Jason Haught
    Email Address: jason.a.haught@wv.gov