SB 0920 - Fiscal Note

Fiscal Note - SB 0920 - Limits Type of Policy For Medicare Supplement

L.R. NO.  3323-01
BILL NO.  SB 920
SUBJECT:  Medicare Supplement Insurance
TYPE:     Original
DATE:     March 1, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

None

Total Estimated
Net Effect on All
State Funds                        $0              $0             $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

None

Total Estimated
Net Effect on All
Federal Funds                      $0              $0             $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

Local Government                   $0              $0             $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Corrections (DOC), Department of Public
Safety (DPS)-State Highway Patrol (HP), Consolidated Health Care Plan (HCP),
Department of Conservation (MDC), Department of Health (DOH), Department of
Social Services (DOS), Office of Administration (OA) and the Department of
Highway and Transportation (DHT) stated that passage of this legislation
would have no fiscal impact on their agency.

Officials from the Department of Insurance (INS) stated that passage of this
legislation will have no fiscal impact on their department.  However, the
passage of more than one similar proposal could require the INS to request
increased appropriations to cover cumulative administrative cost.


FISCAL IMPACT - State Government     FY 1997   FY 1998   FY 1999
                                    (10 Mo.)

                                          $0        $0        $0

FISCAL IMPACT - Local Government     FY 1997   FY 1998   FY 1999
                                    (10 Mo.)

                                          $0        $0        $0

DESCRIPTION

Any insurance company issuing a Medicare supplement policy is prohibited from
setting rates on an "attained age basis".  An attained age basis is a method
where the rates change as the insured person's age changes.

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 Insurance
Department of Corrections
Department of Conservation
Department of Public Safety
Department of Health
Department of Social Services
Office of Administration
Department of Highway and Transportation
Consolidated Health Care Plan