|Date Requested:May 13, 2010
Time Requested:11:09 AM
| FUND(S) |
Sources of Revenue
|Other Fund Federal|
Legislation creates:A New Program,A New Fund
Effect this measure will have on costs and revenues of state government.
| SB 1011, if enacted in its current form, is projected to have a nominal fiscal impact on the revenues and expenditures of state government. The bill provides for the Insurance Commissioner to apply for and administer a Federal High Risk Pool as provided for in the Patient Protection and Affordable Care Act of 2010. The Pool is temporary (3.5 yrs) and funded entirely by the federal government.
The Offices of the Insurance Commissioner will incur some indirect expenditures in the working through the mechanics of contracting for the pool and addressing consumer concerns on availability. However, these functions are in-line with current responsibilities in the regulation of insurers and the administration of the State's High Risk Pool (AccessWV). All direct expenditures incurred at the establishment of the federal pool shall be paid by the premiums assessed policyholders and approximately $27 million in additional funds provided by the federal government. The $27 million is also available for reimbursement of expenses incurred during the development and start-up of the federal pool.
The state has the ability to control the total cost of the pool by implementing enrollment limits based upon actuarial projections. A certified actuarial report is being prepared to establish proposed cost limiting strategies based upon anticipated enrollment levels, lapse rates, premium revenue, and claims costs to ensure the actuarial soundness of the pool during the 3.5 year period.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||0||0|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):