FISCAL NOTE
Date Requested: February 01, 2018
Time Requested: 01:54 PM |
| Agency: |
Public Employees Insurance Agency (PEIA) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2335 |
Introduced |
SB453 |
|
|---|
| CBD Subject: |
Insurance, State Personnel |
|---|
|
FUND(S):
PEIA
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.
The purpose of this bill is to fix the premium cost sharing at 85 percent for the employer and 15 percent for the employee.
This bill will increase the State Fund employer share of premiums for fiscal year 2019 and subsequent years by $32 million, thereby reducing the employee share by the same amount. This equates to an increase of 6% on the $511 million of current employer premiums and a 25% decrease to the $128 million of current employee premiums.
The 80 percent employer and 20 percent employee premium share policy was implemented based on a study performed by the Segal Company at the request of the WV Legislature in 1999. This ratio was found to be reasonable based on national averages at the time of the study. Changing the ratio to 85% employer and 15% employee will result in a larger share of employer premiums than this study recommended.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
32,000,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
32,000,000 |
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 bill will increase the State Fund employer share of premiums for fiscal year 2019 and subsequent years by $32 million, thereby reducing the employee share by the same amount. This equates to an increase of 6% on the $511 million of current employer premiums and a 25% decrease to the $128 million of current employee premiums.
Memorandum
Person submitting Fiscal Note: Jason Haught
Email Address: jason.a.haught@wv.gov