Fiscal Note - SB 0150 - Prepaid Dental Plans Are Not To Be Regulated Under General Insurance Laws
L.R. NO. 0760-01
BILL NO. Truly Agreed to and Finally Passed SB 150
SUBJECT: Health Care: Dentists; Insurance - Medical
TYPE: Original
DATE: May 2, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Conservation, the Office of Administration,
the Missouri Consolidated Health Care Plan, the Department of Transportation,
the Department of Corrections, and the Department of Public Safety, Missouri
State Highway Patrol assume this proposal would not have a fiscal impact on
their agencies.
Officials from the Department of Insurance (DOI) indicate no additional staff
would be necessary as a result of this proposal, although expenses related to
training financial analysts and financial examiners would be required.
Training would be required for analysts and examiners to convert from using
statutory accounting principals (SAP) to generally accepted accounting
principals (GAAP). DOI assumes that existing resources would be sufficient
to absorb the additional training expenses. DOI further states that not
reporting unearned premium liabilities would understate an insurer's
liabilities and overstate it's net worth, which could mask financial problems
of an insurer.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
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 would exclude prepaid dental plans from regulation under the
general insurance laws. It also specifies that liabilities on uncovered
expenses would be determined in accordance with generally accepted accounting
principles and not recorded as unearned premium or deferred revenue.
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
Missouri Consolidated Health Care Plan
Department of Transportation
Department of Conservation
Department of Corrections
Office of Administration
Department of Public Safety
Missouri State Highway Patrol
This Fiscal Note is not an official copy and should not be quoted or cited.