FISCAL NOTE
Date Requested: January 14, 2016
Time Requested: 10:59 AM |
| Agency: |
Health Care Authority |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1112 |
Introduced |
SB68 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
5375
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
This specific legislation will not have direct fiscal impact on the WV Health Care Authority budget.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2016
Increase/Decrease
(use"-") |
2017
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):
This legislation will not have a fiscal impact on the WV Health Care Authority budget. Staff that work in the Rate Division will be reassigned to other job duties within the WV Health Care Authority.
Memorandum
The significant impact to the State as a result of eliminating hospital rate setting is the increase of health care costs that will be borne by the citizens and businesses of West Virginia through increased hospital fees resulting in increased health insurance premiums. The total gross patient revenue for WV hospitals in 2015 was $14,249,710,384. Statistics show that 57.5% of the rates regulated by Rate Review are directly tied to the amount charged. Any increase in hospital charges would increase the $1.89 billion nongovernmental revenue impacted by rate review by a very significant amount. Every 1% increase in hospital rates will result in an increase of $18.9 million dollars in additional charges industry wide. Based on our records, insurance companies pay, through negotiated contracts, about 60% of these charges. That would result in an increase in costs to insurers of $11.3 million dollars for each 1% increase. Presently, West Virginia median gross price per discharge is 21.5% below the national average.
Person submitting Fiscal Note: Kristi Pritt, CFO
Email Address: kpritt@hcawv.org