FISCAL NOTE
Date Requested: January 18, 2020
Time Requested: 03:21 PM |
| Agency: |
Public Employees Insurance Agency (PEIA) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1557 |
Introduced |
SB279 |
|
|---|
| CBD Subject: |
Insurance |
|---|
|
FUND(S):
PEIA Basic Insurance
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.
The purpose of this bill is to require dental insurance plans to honor an assignment, made in writing by the person covered under the policy, of payments due under the policy to a dentist or a dental corporation for services provided to the covered persons under the policy. Although the State, nor PEIA, contributes to the costs of employee dental insurance, this will subject members of dental insurance plans in the State of West Virginia with higher costs.
PEIA has received notice from Delta Dental that passage of this bill would result in a 12.4% increase in costs to its members, based on an assumption of a 10% erosion of its existing network providers. By allowing members to assign benefits to non-network dentists, there is less incentive for a dental provider to join a network and receive discounted reimbursement. With fewer dental providers accepting discounts, the increased costs are passed on to the members.
Additionally, it was noted there will be less quality control as dental networks assure dentists are properly trained and qualified to perform services. Without these controls a network provides, patients seeking care from out of network dental providers would not be afforded the protection a dental network makes available.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
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
Although the State, nor PEIA, contributes to the costs of employee dental insurance, this will subject members of dental insurance plans in the State of West Virginia with higher costs.
PEIA has received notice from Delta Dental that passage of this bill would result in a 12.4% increase in costs to its members, based on an assumption of a 10% erosion of its existing network providers.
Person submitting Fiscal Note: Jason Haught
Email Address: jason.a.haught@wv.gov