FISCAL NOTE
Date Requested: January 14, 2019
Time Requested: 03:08 PM |
| Agency: |
Public Employees Insurance Agency (PEIA) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1620 |
Introduced |
HB2393 |
|
|---|
| CBD Subject: |
Insurance, State Personnel |
|---|
|
FUND(S):
PEIA Basic Fund
Sources of Revenue:
Special Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to fix the premium cost sharing at no less than 80 percent for the employer and no more than 20 percent for the employee.
This bill will allow the PEIA Finance Board to have more flexibility in their financing options for the State Fund. Currently, most State Fund employer premium increases result in an automatic increase for employee’s as the State Fund premium share must be maintained at a level of 80 percent from the employer and 20 percent from the employee.
This bill would permit the employer to pay a larger premium share than 80 and the employee to pay less than 20 percent. With passage of this bill, the PEIA Finance Board could pass an employer premium increase and not increase the employee premium.
This flexibility does however, permit the PEIA Finance Board the ability to increase the cost share of State Fund employer premium costs beyond the level recommended in the Segal report commissioned by the WV Legislature. This report recommended a premium ratio of 80 percent funded by the employer and 20 percent funded by the employee.
To provide some reference to this bill’s potential impact on State Fund employers, a 1 percent increase in employer premium share in 2020 would result in a $6 million increase.
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 |
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):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Memorandum
This bill permits the PEIA Finance Board the ability to increase the cost share of State Fund employer premium costs beyond the level recommended in the Segal report commissioned by the WV Legislature. This report recommended a premium ratio of 80 percent funded by the employer and 20 percent funded by the employee.
To provide some reference to this bill’s potential impact on State Fund employers, a 1 percent increase in employer premium share in 2020 would result in a $6 million increase.
The extent to which the Finance Board would increase the State Fund employer share is unknown and a fiscal impact cannot be provided.
Person submitting Fiscal Note: Jason Haught
Email Address: jason.a.haught@wv.gov