FISCAL NOTE
FUND(S):
2180
Sources of Revenue:
Special Fund
Legislation creates:
A New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to allow for the enrollment into PEIA of any person serving on active or inactive duty with the United States military force in West Virginia access to the WV Public Employees Insurance Agency (PEIA) health care insurance (medical and pharmacy) by adding those individuals into the definition of “employee”.
As the scope of the bill is very broad and totally inclusive of active and inactive military personnel that claim residence in the State of West Virginia and does not directly address if the payment of premiums will be assigned solely to the military service member or to some State agency or organization paying the employer share of the premium and the veteran paying the employee share so we have developed two scenarios. The first scenario will be based upon the assumption that the employer cost of the premiums for the service member electing to enroll in PEIA will be paid for by some State government entity, the second scenario will assume the service member will be responsible for payment of the whole premium.
Fiscal Note Detail
Effect of Proposal |
Fiscal Year |
2009 Increase/Decrease (use"-") |
2010 Increase/Decrease (use"-") |
Fiscal Year (Upon Full Implementation) |
1. Estmated Total Cost |
37,821,600 |
41,603,760 |
45,764,136 |
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 |
37,821,600 |
41,603,760 |
45,764,136 |
Explanation of above estimates (including long-range effect):
Obtaining exact numbers of active and inactive military service members that report the State of West Virginia as their home-of-record is extremely difficult. Based upon historic records of WV military volunteer enlistment and estimates of the size of the United States reserve forces situated in WV it is estimated that approximately 1% of the State population is serving in the U.S. military forces in either an active and/or inactive status. PEIA is allowing for approximately 20,000 individuals that would be eligible to enroll by being in one of these two categories. Assuming that 60% of those eligible to enroll would do so, it is expected that the type of insurance coverage taken by those enrolling for PEIA health insurance would be 70% single and 30% family. A 10% trend increase is applied to subsequent years to match the existing medical trend assumptions used by the PEIA.
Scenario 1:
State pays Employer Premium, Insured Pays Employee Premium
60% will join PEIA
Percent Singles: 70% $ 345.00
Percent Families: 30% $ 705.00
Single 8,400
Family 3,600
Total Number Covered 12,000
Fiscal Year Projected Costs to State
FY09 $ 37,821,600
FY10 $ 41,603,760
FY11 $ 45,764,136
Total for Three Years $125,189,496
Scenario 2:
Expansion is treated as a separate risk pool with new coverages paying the total cost of the claims.
No cost to the State.
Memorandum
Person submitting Fiscal Note: J. Michael Adkins, Deputy Director, PEIA
Email Address: michael.adkins@wv.gov