COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1219-01

Bill No.: SB 289

Subject: Business and Commerce; Employees - Employers; Health Care; Insurance - Medical

Type: Original

Date: February 5, 2001




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0

*Unknown income and expenditures annually would net to $0.

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.



FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Conservation and the Department of Transportation assume this proposal would not fiscally impact their agencies.



Missouri Consolidated Health Care Plan (HCP) officials state that anytime a group is up for rebid, insurers are able to produce claims reports to re-evaluate the group's rates. HCP states that insurers usually provide a copy to the group to seek other bids as well. HCP further states that insurers currently have the capability of producing claims reports so no fiscal impact is anticipated.



Officials from the Department of Insurance (INS) state that market conduct staff would include proposal in review of company files during examinations. INS anticipates that implementation of this proposal can be absorbed by existing staff.



Department of Social Services - Division of Medical Services (DMS) officials state that DMS would be affected by this proposal because it administers a managed care program which contracts with health maintenance organizations (HMOs) for the purpose of providing health care services through capitated rates. These HMOs would be subject to the regulations in this proposal. DMS assumes that any additional cost incurred by managed care contractors because of mandated Federal or State laws would increase the administrative costs included in future bids with the Medicaid program.



Oversight assumes that the HMOs have the capability of producing claims reports and there would be no fiscal impact.



Officials from the Department of Public Safety - Missouri State Highway Patrol did not respond to our fiscal impact request.



FISCAL IMPACT - State Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0





FISCAL IMPACT - Local Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0



FISCAL IMPACT - Small Business



Small businesses (insurance companies and HMOs) would expect to be fiscally impacted to the extent that they would incur additional administrative costs as a result of the requirements of this proposal.





DESCRIPTION



This proposal would require insurers to provide annual claims reports to group policyholders.



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



Department of Transportation

Department of Social Services

Missouri Consolidated Health Care Plan

Department of Insurance

Department of Conservation



NOT RESPONDING: Department of Public Safety - Missouri State Highway Patrol



















Jeanne Jarrett, CPA

Director



February 5, 2001