COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 3801-07

BILL NO.: Perfected SS for SCS for SB 885

SUBJECT: Health Care; Insurance - Medical; State Departments

TYPE: Original

DATE: April 26, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
All funds (Over $100,000) (Over $100,000) (Over $100,000)
Total Estimated

Net Effect on All

State Funds

(OVER $100,000) (OVER $100,000) (OVER $100,000)



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.



FISCAL ANALYSIS



ASSUMPTION



Officials from the Joint Committee on Public Employees Retirement, the State Highway Employees and Patrol Retirement System, the Department of Transportation, the Department of Public Safety - Missouri State Highway Patrol, and the Department of Health assume this proposal would not fiscally impact their agencies.



Office of Administration (COA) officials state there may be a fiscal impact from this proposal. However, COA states any potential fiscal impact from this proposal would be determined through the actuarial report from the Missouri Consolidated Health Care Plan in the rate they certify to COA.



Missouri State Employees Retirement System officials state the proposal would not effect their system.



Officials from the Missouri Consolidated Health Care Plan (HCP) state their may be a fiscal impact as a result of the provision addressing state employees without HMO health coverage but are unable to determine the fiscal impact until the plan offer is complete. HCP believes the fiscal impact would exceed $100,000.





FISCAL IMPACT - State Government FY 2001

(10 Mo.)

FY 2002 FY 2003
ALL FUNDS
Costs - All Funds
Increased state contributions (Over $100,000) (Over $100,000) (Over $100,000)
ESTIMATED NET EFFECT ON ALL FUNDS



(OVER $100,000)


(OVER $100,000)


(OVER $100,000)


FISCAL IMPACT - Local Government FY 2001

(10 Mo.)

FY 2002 FY 2003
$0 $0 $0



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



This proposal would require the Missouri Consolidated Health Care Plan to develop and submit to the legislature by September 1, 2000 a plan to offer to state employees located in counties in which HMO coverage is not available, a medical benefits plan for calendar year 2001. The medical benefits plan would provide coverage identical to HMO benefits coverage at a cost not to exceed the average cost to employees in counties where such coverage is available. The proposal would reduce continued coverage due to death or disability from two years to six months under a separate group or individual policy.



The proposal recommends that health care provider contracts be based upon a fiscal year beginning October 1 rather than a calendar year.



The proposal would increase the board members of the plan from eleven to thirteen.



This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.



SOURCES OF INFORMATION



Missouri Consolidated Health Care Plan

Joint Committee on Public Employees Retirement

Office of Administration

MOSERS

State Highway Employees and Patrol Retirement System

Department of Transportation

Department of Public Safety

Missouri State Highway Patrol

Department of Health









Jeanne Jarrett, CPA

Director

April 26, 2000