FISCAL NOTE

Date Requested: February 10, 2021
Time Requested: 04:32 PM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
1281 Introduced HB2153
CBD Subject:


FUND(S):

PEIA Basic Insurance

Sources of Revenue:

Special Fund

Legislation creates:





Fiscal Note Summary


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


The purpose of this bill is to permit legislative members to retain eligibility for state insurance plans after leaving the Legislature so long as the former member pays his or her share of the full cost and no burden is placed on the state to absorb costs. Passage of this bill will create a new member type in the plan that previously would have had no further affiliation with PEIA; except that provided through COBRA. W. Va. Code §5-16-2 provides the member types currently eligible for PEIA, public employees and retirees. This plan is designed to support only active and vested retired public employees. This new category proposed, does not fall into the spirit of the standard practice of employer sponsored health insurance. Additionally, it should be noted this bill will create a new vesting period for legislators for the availability of lifetime insurance benefits. All exiting members of PEIA are currently provided extended coverage through COBRA. The COBRA benefit is intended to provide time for previously eligible members to arrange for other healthcare insurance after separation from public office or employment. Although the bill calls for the issuance of the coverage at ‘the full cost and no burden is placed on the state to absorb costs,’ appears to make this budget neutral to the state, PEIA must advise costs would be incurred by competing insurance carriers and healthcare providers. WV healthcare providers will see a reduction of reimbursement ranging from 10 to 30% and private insurance carriers could see an annual, cumulative reduction of their market share by the number of ex-WV Legislators.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
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 bill calls for the issuance of the coverage at ‘the full cost and no burden is placed on the state to absorb costs,’ appears to make this budget neutral to the state, PEIA must advise costs would be incurred by competing insurance carriers and healthcare providers. WV healthcare providers will see a reduction of reimbursement ranging from 10 to 30% and private insurance carriers could see an annual, cumulative reduction of their market share by the number of ex-WV Legislators.



    Person submitting Fiscal Note: Jason Haught
    Email Address: jason.a.haught@wv.gov