FISCAL NOTE

Date Requested: January 29, 2019
Time Requested: 02:22 PM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
1122 Introduced HB2321
CBD Subject: Workers Compensation


FUND(S):

7152

Sources of Revenue:

Special Fund

Legislation creates:

Creates New Expense



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


House Bill 2321, if enacted, would provide worker’s compensation insurance coverage to first responders diagnosed with Post-Traumatic Stress Disorder (PTSD). The Offices of the Insurance Commissioner has consulted with the National Council on Compensation Insurance (NCCI), our rating and statistical agent for workers compensation, in order to obtain their input on the potential fiscal impact on the enactment of HB2321 and the related Senate Bill 114. Neither the Offices of the Insurance Commissioner nor NCCI are able to explicitly quantify the expected increase in costs if PTSD is classified as a compensable condition for first responders, as no data exists that would enable us to accurately estimate the number of claims that would be filled. However, due to the high prevalence of PTSD among first responders, NCCI estimates that the increase in compensable PTSD related claims could be significant for those occupational classifications. It is anticipated that the overall cost to the West Virginia worker’s compensation market would be minimal, as first responder classifications represent only 3% of losses in WV. However, the impact on employers who employ first responders could be significant. See the memorandum to this fiscal note for additional information.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2019
Increase/Decrease
(use"-")
2020
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):






Memorandum


House Bill 2321, if enacted, may result in an indeterminate increase in system costs for first responder classification codes in West Virginia. First responder classification codes include: law enforcement officers, firefighters, emergency medical technicians and paramedics. Much of the cost impact for first responder class codes would be borne by governmental entities who are the typical employers of the affected employees. The impact on the overall workers compensation costs is expected to be minimal, as data reported to NCCI shows that first responder classifications represent approximately 3% of losses in WV, although the expected cost impact on individual first responder class codes could be greater. If enacted, any system cost impact would be realized through future loss experience and reflected in subsequent NCCI loss cost filings in the state.



    Person submitting Fiscal Note: Melinda Kiss
    Email Address: Melinda.A.Kiss@wv.gov