Date Requested:March 03, 2005
Time Requested:10:01 AM
Agency: State Tax Department
CBD Number: Version: Bill Number: Resolution Number:
2005R1283 Intro HB2825
CBD Subject: Credits for OBGYN
FUND(S)
Medicaid State Share Fund
Sources of Revenue
Other Fund Medicaid State Share Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The stated purpose of this bill is to continue the tax credit under article three-t, chapter eleven of this code for physicians who practice Obstetrics and Gynecology.
    
    According to our interpretation and based upon available data, passage of this bill would result in a decline in the Medicaid State Share Fund of roughly $750,000 to $1.6 million per year, depending on whether the affected taxpayers have qualifying tail insurance premiums.
    
    Unless alternative state matching funds are provided to the Medicaid State Share Fund, federal Medicaid matching funds could also decrease by roughly $2.25 million to $4.8 million per year.
    
    Additional administrative costs to the State Tax Department associated with this bill would be minimal.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 -1,600,000 -1,600,000
3. Explanation of above estimates (including long-range effect):
    This bill would continue the tax credit under article thirteen-t, chapter eleven of this code for physicians who practice Obstetrics and Gynecology.
    
    Passage of this bill would result in a decline in the Medicaid State Share Fund of roughly $750,000 to $1.6 million per year, depending on whether the affected taxpayers have qualifying tail insurance premiums.
    
    Unless alternative state matching funds are provided to the Medicaid State Share Fund, federal Medicaid matching funds could also decrease by roughly $2.25 million to $4.8 million per year.
    
    Additional administrative costs to the State Tax Department associated with this bill would be minimal.
    


Memorandum
Person submitting Fiscal Note:
Mark Muchow
Email Address:
kpetry@tax.state.wv.us
    The stated purpose of this bill is to continue the tax credit under article three-t, chapter eleven of this code for physicians who practice Obstetrics and Gynecology.
    
    As written, this bill would continue the tax credit for combined claims made medical malpractice premiums and medical malpractice liability insurance tail insurance premiums paid for physicians in the practice of Obstetrics and Gynecology, even though the credit has been discontinued for other physicians. The favored treatment of physicians in the practice of Obstetrics and Gynecology in relation to other physicians may be in violation of the Equal Protection provisions of the Constitution.
    
    Additionally, the stated purpose refers to “article three-t, chapter eleven of this code” when the correct reference should be to “article thirteen-t, chapter eleven of this code.”