SB 0902 - Fiscal Note

Fiscal Note - SB 0902 - Ins. Plans to Permit Dermatology Care w/o Gatekeeper Consent

L.R. NO.  3430-01
BILL NO.  SB 902
SUBJECT:  Health Insurance, Dermatology
TYPE:     Original
DATE:     February 19, 1996



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED                 FY 1997         FY 1998        FY 1999

Insurance
Dedicated                     $40,500              $0             $0

Total Estimated
Net Effect on All
State Funds                   $40,500              $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

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 Highway and Transportation  (DHT) reported
that their current medical plan does not require a referral from a primary
care physician in order to access dermatological services. Consequently, the
DHT assumes the proposal will have no fiscal impact.

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),  and the Consolidated
Health Care Plan (HCP) did not respond to our fiscal impact request.

Oversight assumes this proposal will have very minimal or no fiscal impact on
the agencies which did not respond.


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

INSURANCE DEDICATED FUND

  Income - Department of Insurance

  Policy Filing Fees                   $40,500         $0         $0

  Estimated Net Effect on Insurance    $40,500         $0         $0
  Dedicated Fund

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

                                            $0         $0         $0

DESCRIPTION

This act would allow an enrollee of a health  benefit policy which offers
dermatological services to see a dermatologist without obtaining a primary
care physician's referral.

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
Department of Highway and Transportation

Not Responding:  Department of Conservation, Department of Public Safety,
Department of Social Services, Consolidated Health Care Plan