FISCAL NOTE
Date Requested: March 28, 2025
Time Requested: 03:33 PM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3660 |
Comm. Sub. |
SB718 |
|
|---|
| 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.
If enacted, Senate Bill 718 would require the Insurance Commissioner to collect, analyze, and publish financial data from hospitals operating in the State of WV. SB718 further requires the Insurance Commissioner to establish Rules and Regulations related to the legislation and to establish a web based portal which shall include hospital rate comparison tools to be made available to the public.
The WV Offices of the Insurance Commissioner (OIC) is unable to accurately quantify the costs of the proposed legislation, but believes that the costs would be significant.
Please review the memorandum section of this fiscal note for additional information.
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 718, if enacted, would impose significant new duties to the WV Insurance Commissioner related to the financial transparency of hospital fees.
The new responsibilities imposed by SB718 include the collection, analysis, summarization and publication of financial information of hospitals operating in the State. SB718 also requires the establishment of Rules and Regulations related to the Act and the establishment and maintenance of a web-based portal available for public use.
The Insurance Commissioner (OIC) does not currently have the staff, resources or expertise to effectively implement the duties imposed by SB718. It is anticipated the the OIC would need to engage a significant number of contractors to assist with the development of the reporting requirements and the technology necessary to comply with the legislation. The OIC is unable to accurately estimate the costs of the contracted services and any additional staffing needs at this time, but it is believed that the costs would be significant.
It should be noted that the OIC is unable to identify any other states that house hospital transparency reporting within the state's insurance department. We have been able to identify other states with hospital transparency reporting requirements where those duties are performed by either the Health Department or a Health Authority.
SB718 does not provide funding to the OIC to perform the duties required by the legislation. It does allow the OIC to levy fines for non-compliance, but the OIC is unable to estimate the amount or timing of the revenue. It should be noted that all fines levied against the insurance industry by the OIC are sent to the State's
General Revenue Fund, and not retained by the OIC for operations.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov