FISCAL NOTE
Date Requested: January 24, 2019 Time Requested: 01:28 PM |
Agency: |
Public Employees Insurance Agency (PEIA) |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2599 |
Introduced |
HB2649 |
|
CBD Subject: |
Insurance -- Health, Military Affairs |
---|
|
FUND(S):
PEIA Basic Insurance
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to make active and inactive military members eligible for the PEIA plan as employees.
The population of this fiscal note is all active armed forces, reserve forces and national guard currently in WV, increased by a factor of 250% to account for inactive personnel. This number is then multiplied by 50% for the percentage that would accept PEIA. This is performed due to active personnel are covered by the federal insurance Tricare and some inactive personnel may already have insurance coverage. There are currently 8,350 active personnel in WV. Applying the above adjustments to this number results in a final assumption of 14,613 new policies in PEIA.
The bill creates a new class of employee but doesn’t indicate an employer, or who will pay the employer premiums for these newly eligible members. This fiscal note assumes the State of WV will assume these costs at 80% per WV §5-16. The current per employee claim cost of $699 has been applied to the new policies and trended at 6% per year.
This will result in additional health costs to the state of $104 million in FY 2020.
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 |
104,000,000 |
0 |
Personal Services |
0 |
0 |
0 |
Current Expenses |
0 |
104,000,000 |
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):
The population of this fiscal note is all active armed forces, reserve forces and national guard currently in WV, increased by a factor of 250% to account for inactive personnel. This number is then multiplied by 50% for the percentage that would accept PEIA. This is performed due to active personnel are covered by the federal insurance Tricare and some inactive personnel may already have insurance coverage. There are currently 8,350 active personnel in WV. Applying the above adjustments to this number results in a final assumption of 14,613 new policies in PEIA.
The bill creates a new class of employee but doesn’t indicate an employer, or who will pay the employer premiums for these newly eligible members. This fiscal note assumes the State of WV will assume these costs at 80% per WV §5-16. The current per employee claim cost of $699 has been applied to the new policies and trended at 6% per year.
This will result in additional health costs to the state of $104 million in FY 2020.
Memorandum
The bill creates a new class of employee but doesn’t indicate an employer, or who will pay the employer premiums for these newly eligible members. This fiscal note assumes the State of WV will assume these costs at 80% per WV §5-16. The current per employee claim cost of $699 has been applied to the new policies and trended at 6% per year.
Person submitting Fiscal Note: Jason Haught
Email Address: jason.a.haught@wv.gov