FISCAL NOTE
Date Requested: January 31, 2023
Time Requested: 09:47 AM |
| Agency: |
Insurance Commission |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2635 |
Introduced |
SB267 |
|
|---|
| CBD Subject: |
Insurance |
|---|
|
FUND(S):
7152 Insurance Commission Fund
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Revenue, Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
Senate Bill 267, if enacted, would increase the oversight and enforcement responsibilities of the Insurance Commissioner over prior authorizations.
The Offices of the Insurance Commissioner estimates the cost of this bill to be approximately Five Hundred and Four Thousand Dollars ($504,000.00).
The cost estimate is related to the creation and maintenance of the database that the regulated entities would report into on a quarterly basis.
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 |
252,000 |
504,000 |
| 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):
The Offices of the Insurance Commissioner currently handles several annual and quarterly data calls. The OIC would utilize current staff to review and act on compliance issues identified from the quarterly data required by this legislation. However, the OIC would need to create and maintain a new database to handle the specific quarterly data required to be reported to the OIC. The vendors that handle the creation and maintenance of these databases have a negotiated rate between One Hundred Fifty Five Dollars ($155.00) and One Hundred Eighty Dollars ($180.00) per employee per hour. Given the data required by the legislation, the OIC would not expect more than Two Thousand and Eight Hundred (2,800) total hours to create and then maintain said database with the possibility for decrease in future years.
Senate Bill 267 has provisions allowing the OIC to assess civil penalties on regulated entities that are not in compliance. Further, it is noted that this fiscal note does not address any costs that may be associated with the SB267 requirement that the Public Employees Insurance Agency will be subject to the OIC reporting and regulatory oversight. PEIA should be consulted about the fiscal impact of SB267 to the agency.
Estimate details
2800 estimated hours X $180.00 per hour = $504,000.
For the FY24 estimate, it appears that the bill would be in effect for half the fiscal year, so it is calculated for half the estimate.
Please note years FY26 and beyond may have lower estimated costs, when only maintenance of the data base system is required.
Memorandum
Senate Bill 267, if enacted, would increase the oversight and enforcement responsibilities of the Insurance Commissioner over prior authorizations.
The Offices of the Insurance Commissioner (OIC) estimates the cost of this bill to be approximately Five Hundred Thousand Dollars ($504,000.00). The cost estimate is related to the creation and maintenance of the database that the regulated entities would report into on a quarterly basis.
Senate Bill 267, if enacted would establish regulatory authority of the Insurance Commissioner over the Public Employees Insurance Agency (PEIA) in the area of prior authorizations. PEIA should be consulted regarding any impact to the agency.
SB 267 authorizes the OIC to access a civil penalty for noncompliance of the regulated entities.
Please note years FY26 and beyond may have lower estimated costs, when only maintenance of the system is required.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov