COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4204-03
Bill No.: SB 1061
Subject: Insurance - Medical; Health Care; Insurance Department
Type: Original
Date: February 5, 2002
FISCAL SUMMARY
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Insurance Dedicated | ($42,225) | ($47,538) | ($48,744) |
| Total Estimated
Net Effect on All State Funds |
($42,225) | ($47,538) | ($48,744) |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2003 | FY 2004 | FY 2005 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 3 pages.
ASSUMPTION
Officials from the Department of Social Services, the Department of Transportation, Missouri Consolidated Health Care Plan, the Missouri Department of Conservation, and the Department of Public Safety - Missouri State Highway Patrol assume this proposal would not fiscally impact their agency.
Officials from the Department of Insurance (INS) assume that in order to review all policy
form filings and adequately protect consumers that additional staff will be needed to comply with
the 30 day period. Currently policies are filed and deemed approved until the INS has notified
the company otherwise. INS states this legislation changes the INS's ability to adequately
review policies and make changes after 30 days. The INS estimates that to comply with the 30
day review timeframe it will need an additional 1 Insurance Product Analyst II. The additional
FTE will allow the department to review and approve or disapprove policies within the 30 day
time frame.
(10 Mo.)
FISCAL IMPACT - State Government
FY 2003
FY 2004
FY 2005 INSURANCE DEDICATED FUND
Costs - Department of Insurance
Personal Service (1 FTE)
($26,291)
($32,338)
($33,147) Fringe Benefits
($9,467)
($11,645)
($11,936) Expense and Equipment
($6,467)
($3,555)
($3,661) Total Costs - Department of Insurance
($42,225)
($47,538)
($48,744)
ESTIMATED NET EFFECT ON
INSURANCE DEDICATED FUND
($42,225)
($47,538)
($48,744)
| FISCAL IMPACT - Local Government | FY 2003
(10 Mo.) |
FY 2004 | FY 2005 |
| $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 holds that whenever a health service corporation submits a policy form to the Director of Insurance, and the Director does not disapprove the form within 30 days, the form is deemed approved and is not subject to disapproval or further review for 24 months. This proposal also holds that whenever an HMO modifies any of the information or procedures in its certificate of authority, the modification shall be deemed approved within 30 days of filing unless the Director of Insurance rejects the modification citing specific reasons. The approved modification shall not be subject to disapproval or further review for a period of 24 months.
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
Missouri Department of Conservation
Department of Public Safety -
Missouri State Highway Patrol
Mickey Wilson, CPA
Acting Director
February 5, 2002