FISCAL NOTE

Date Requested: January 31, 2020
Time Requested: 11:14 AM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
2861 Introduced HB4642
CBD Subject: Health


FUND(S):

7152

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Expense, Increases Existing Expenses



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    House Bill 4642, if enacted, would require the Insurance Commissioner to implement a uniform credentialing program for health practitioners by no later than July 1, 2020.
    
    HB 4642 eliminates the advisory committee and the Secretary of the Department of Health and Human Resources from the responsibility for the establishment of a health practitioners credentialing program and establishes the Insurance Commissioner as the sole authority responsible for implementing the program.
    
    The Offices of the Insurance Commissioner estimates that the enactment of HB 4642 would require an additional FTE to implement and enforce the program.
    The costs associated with the additional FTE are estimated to be $91,950 annually.
    
    



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 91,950 91,950
Personal Services 0 88,450 88,450
Current Expenses 0 3,500 3,500
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 OIC estimates that the enactment of HB 4642 will require the addition of one new FTE at the market Conduct Examiner 2 (class code 8166) level.
    
    The mid-range of the salary for that job classification is approx. $61,000. The estimate for benefits and insurance is calculated at 45% of salary, which yields $27,450 for total personal service expense of $88,450.
    
    The additional overhead and occupancy associated with the addition of one FTE is estimated to be $3,500.
    
    Market Conduct Examiner salary $61,000
    benefits, insurance, taxes $27,450
    
    Total Personal Services $88,450
    
    Occupancy & Overhead per FTE
    (lower range) $ 3,500
    
    Total cost $91,950
    



Memorandum


    House Bill 4642, if enacted, would require the Insurance Commissioner to implement a uniform credentialing program for health practitioners.
    
    The Offices of the Insurance Commissioner estimates that the enactment of HB 4642 would require an additional FTE to implement and enforce the program.
    The costs associated with the additional FTE are estimated to be $91,950 annually.
    
    House Bill 4642 also provides that the OIC shall propose rules for legislative approval that will include rules that govern the payment system to cover the cost of the credentialing program.
    
    It is unknown at this time if the OIC will receive any revenues to offset the cost of the health practitioners credentialing program, but the possibility exists that the costs of the program can be recovered.
    



    Person submitting Fiscal Note: Melinda Kiss
    Email Address: Melinda.A.Kiss@wv.gov