FISCAL NOTE
Date Requested: February 17, 2025
Time Requested: 08:54 AM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1648 |
Introduced |
SB426 |
|
|---|
| CBD Subject: |
Insurance; State Personnel |
|---|
|
FUND(S):
7152 OIC Operating Fund
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.
Senate Bill 426 seeks to privatize PEIA (Public Employees Insurance Agency) and upon dissolution of the agency create a mutual insurance company.
Senate Bill 426 would also keep PBM filings confidential and prevent the agency / company from sharing them with any other governing body.
Senate Bill 426 would establish an Insurance Council, potentially transfer some current PEIA employees, create a claims index, and create an old fund for claims incurred prior to privatization, among other various duties imposed on the Offices of the Insurance Commissioner.
While it is believed that the provisions of SB426 would both increase existing costs and create new expenses for the OIC, we are unable to quantify the costs of the proposed legislation.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
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
Senate Bill 426 seeks the dissolution of PEIA (Public Employees Insurance Agency) and upon dissolution of the agency create a private mutual insurance company.
SB426, transfers various duties and employees to the Offices of the Insurance Commissioner. It is not clear at this time what the increased costs to the OIC would be, but the OIC may have increased costs associated with the Public Employees Insurance Council and the transfer of PEIA employees to the OIC. The Department of Administration has provided a fiscal note regarding the number and cost of PEIA employees.
Person submitting Fiscal Note: Juanita Wimmer
Email Address: Juanita.D.Wimmer@wv.gov