This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0899 - Limits Financial Restrictions For Mental Health Services
L.R. NO. 3410-01
BILL NO. SB 899
SUBJECT: Insurance-Medical, Mental Health
TYPE: Original
DATE: February 19, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
All State Funds (Unknown) (Unknown) (Unknown)
General Revenue Unknown Unknown Unknown
Insurance
Dedicated $40,500 $0 $0
Total Estimated
Net Effect on All
State Funds UNKNOWN UNKNOWN UNKNOWN
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
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
The Department of Insurance(INS) stated it will need .5 FTE, an Insurance
Product Analyst II, and related expense to review all new life and health
form filings caused by changes to insurance policies and plans generated by
this and all other legislation enacted during this session. This FTE would
work full-time for six months a year. INS states that approximately 245
insurers and 25 HMOs are currently writing medical plans. On average each
company offers three plans. The result would be 810 new policy filings needed
to comply with this legislation. A policy filing fee of $50 is required and
based on 810 filings, $40,500 in revenue to the Insurance Dedicated Fund
would be generated in the first fiscal year only.
Oversight assumes the passage of this proposal would not increase cost to
INS; however, revenue of $40,500 in the first fiscal year only would be
realized. In addition, passage of more than one similar proposal could
require the INS to request increased appropriations to cover cumulative
administrative costs.
Officials from the Department of Corrections (DOC), Department of Health
(DOH), and the Office of Administration (OA) stated that passage of this
legislation would have no fiscal impact on their agency.
Officials from the Department of Conservation (MDC), Department of Public
Safety (DPS), Department of Social Services (DOS), Department of Highway and
Transportation (DHT), Department of Mental Health (DMH), and the Consolidated
Health Care Plan (HCP) did not respond to our fiscal impact request.
Oversight assumes this proposal will generate increased costs in an unknown
amount to HCP.
Oversight assumes this proposal will generate savings in an unknown amount to
DMH.
FISCAL IMPACT-State Government FY 1997 FY 1998 FY 1999
(10 Months)
ALL STATE FUNDS
Cost - Consolidated Health Care Plan
Increased health care costs for mental
health benefits (Unknown) (Unknown) (Unknown)
Estimated Net Effect on All State
Funds (Unknown) (Unknown) (Unknown)
GENERAL REVENUE FUND
Savings - Department of Mental
Health
Decreased costs for mental health
services Unknown Unknown Unknown
Estimated Net Effect on Fund Unknown Unknown Unknown
INSURANCE DEDICATED FUND
Income - Department of Insurance
Policy Filing Fees $40,500 $0 $0
Estimated Net Effect on Insurance
Dedicated Fund $40,500 $0 $0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
$0 $0 $0
DESCRIPTION
This act provides that health plans which offer coverage for mental health or
chemical dependency services may not place a greater financial burden on an
enrollee for outpatient mental health or outpatient chemical dependency
services than they do for outpatient medical services.
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 Health
Office of Administration
Not Responding: Department of Conservation, Department of Public Safety,
Department of Social Services, Department of Highway and Transportation,
Department of Mental Health, Consolidated Health Care Plan