Date Requested:April 01, 2005
Time Requested:10:17 AM
Agency: Risk and Insurance Management, Board of
CBD Number: Version: Bill Number: Resolution Number:
2005R1786 Engrossed SB603
CBD Subject: Flexibility Measures WVU & Marshall
FUND(S)
2360; 2361; 2362; 2363; 2367; 2368
Sources of Revenue
Special Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

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

    The Engrossed version of this legislation proposes that upon agreement with the State Board of Risk and Insurance Management (BRIM), the medical schools may participate in a self-insurance retention program in conjunction with BRIM. Additionally, in administering the self-insurance retention (SIR)program, the medical schools may manage/settle its own medical professional liability insurance claims.
    The premiums, for medical malpractice coverage only, for WVU, Marshall, and WVSOM for FY 2006 are: $10,800,237; $5,012,819; and $229,674 respectively. This premium is for occurrence coverage and funds all medical malpractice claims for FY 2006. Consequently, the maximum anticipated fiscal impact for FY 2006 to BRIM is the loss of the total revenue that would have been received from all three institutions, or $16,042,730.
    However, in a SIR, anticipating that the medical schools will be fiscally responsible for a portion, for example, the first $250,000 of each claim, BRIM's total fiscal impact chould reduce by approximately 55% to 65% dependent upon the actuarial study and the mechanics of the final SIR program. This fiscal note reflects a 55% reduction.

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 8,823,502
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 0 8,823,502
3. Explanation of above estimates (including long-range effect):
    


Memorandum
Person submitting Fiscal Note:
Charles E. Jones, Jr
Email Address:
cjones@wvadmin.gov