FISCAL NOTE
Date Requested: January 18, 2023 Time Requested: 10:39 PM |
Agency: |
Insurance Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
2707 |
Introduced |
HB2604 |
|
CBD Subject: |
Health |
---|
|
FUND(S):
7152 Insurance Commission Fund
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.
If enacted, House Bill 2604 would provide for the transparency of expenditures of patient premiums of dental health care service plans and require carriers to file annual reports. HB2604 also requires annual rebates to patients if the actual expenditures for patient care is less than a certain percentage of premiums and requires legislative and emergency rules.
If enacted, the OIC estimates that the cost to the agency would be an increase of approximately $2,880. This cost would be to obtain the services of an actuarial firm to assist with the review of the MLR reports.
This fiscal note does not reflect any cost to the dental health care service plans for potential rebates to patients.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2023 Increase/Decrease (use"-") |
2024 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
0 |
2,880 |
2,880 |
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):
There are currently a small number of active dental health care service providers operating in WV.
Accordingly, the number of annual reports to be received is expected to be low and can predominately be reviewed internally with existing staff. For some reports, the use of an contracted actuarial firm to review the Medical Loss Ratio (MLR) annual report may be necessary.
The cost estimate to obtain the services of an actuarial review of the MLR annual reports is not expected to exceed $2880 annually.
Existing rate with contracted actuarial firm = $180 per hour.
Estimated time to review report = 2 hours per report.
Estimated number of reports that may require actuarial review = 8
2 hr. @ $180 per hour * 8 reports = $2880
Memorandum
If enacted, House Bill 2604 would provide for the transparency of expenditures of patient premiums of dental health care service plans and require carriers to file annual reports. HB2604 also requires annual rebates to patients if the actual expenditures for patient care is less than a certain percentage of premiums and requires legislative and emergency rules.
If enacted, the OIC estimates that the cost to the agency would be an increase of approximately $2,880 annually. This cost would be to obtain the services of an actuarial firm to assist with the review of certain MLR reports.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov