FISCAL NOTE
Date Requested: January 31, 2023 Time Requested: 09:49 AM |
Agency: |
Insurance Commission |
CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
3136 |
Introduced |
SB480 |
|
CBD Subject: |
Actions, Suits and Liens |
---|
|
FUND(S):
7152 Insurance Commission Fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources, 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 480 would modify the requirements for Multiple Employer Welfare Arrangements and Group self-insurance programs to operate in the State. SB480 removes the five year waiting period and reduces the required number of persons participating from 100 persons to 50.
The above providers of health insurance benefits would be regulated by the Insurance Commissioner. The OIC believes that there would be a modest increase in existing revenues from filing fees from the entities that obtain a certificate of authority to operate. The amount of increased revenue will be dependent upon the number of entities seeking to operate and the OIC is unable to properly estimate that at this time.
The OIC also believes that there would be additional expenses to the agency. The additional expenses would be related to obtaining the services of actuarial and accounting firms to develop a model to utilize for assessing the financial condition and risk bearing capabilities of the self-insured programs and the MEWAs. Also, depending on the number of new entities seeking authority to operate, there is the potential that an additional FTE (a financial analyst) would be required if the volume is significant.
If the OIC's future appropriated budgets remain at the (FY23 / FY24) current levels, the OIC believes that they can accommodate the additional regulatory duties without additional appropriations or funding.
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 |
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
If enacted, Senate Bill 480 would modify the requirements for Multiple Employer Welfare Arrangements and Group self-insurance programs to operate in the State. SB 480 removes the five year waiting period and reduces the required number of persons participating from 100 persons to 50.
The above providers of health insurance benefits would be regulated by the Insurance Commissioner. The OIC believes that there would be a modest increase in existing revenues from filing fees from the entities that obtain a certificate of authority to operate. The amount of increased revenue will be dependent upon the number of entities seeking to operate and the OIC is unable to properly estimate that at this time.
The OIC also believes that there would be additional expenses to the agency. The additional expenses would be related to obtaining the services of actuarial and accounting firms to develop a model to utilize for assessing the financial condition and risk bearing capabilities of the self-insured programs and the MEWAs. Also, depending on the number of new entities seeking authority to operate, there is the potential that an additional FTE (a financial analyst) would be required if the volume is significant.
If the OIC's future appropriated budgets remain at the (FY23 / FY24) current levels, the OIC believes that they can accommodate the additional regulatory duties without additional appropriations or funding.
Person submitting Fiscal Note: Melinda Kiss
Email Address: Melinda.A.Kiss@wv.gov