Date Requested:January 13, 2011
Time Requested:04:36 PM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
2001R1534 Introduced HB2121
CBD Subject: PROVIDING STATE HEALTH CARE
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 provide state health care services for all active and inactive duty military personnel.
    
    This legislation changes the definition of “Employee”, in the Public Employees Insurance Agency code, to include “a person serving in the Armed Forces of the United States in the Army, Navy, Marine Corps, Air Force, National Guard or Coast Guard as defined by the laws of the United States and who are citizens and residents of this state”.
    
    As the scope of the bill is very broad and totally inclusive of veterans and does not directly address if the payment of premiums will be assigned solely to the veteran or to a 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 veterans enrolling in PEIA will be paid for by a State government entity. The second scenario will assume the veterans will be responsible for payment of the entire premium.
    
    
     Number of Veterans According to VA Report in 2010: 197,152
     Potential Number of Coverages 197,152
    
     Scenario 1:
    
     State pays Employer Premium, Insured Pays Employee Premium
     60% will join PEIA 9% Cost of Care Inflations
     Percent Singles: $ 222.00
     Percent Families: $ 617.00
    
     Single coverages 70% : 82,740
     Family coverages 30% : 35,460
     Total Number of coverages: 118,200
    
     Fiscal Year Projected Costs to State
    
     FY12 $ 482,965,000.00
     FY13 $ 526,432,000.00
     FY14 $ 573,810,000.00
    
     Total for Three Years $ 1,583,207,000.00
    
    
     Scenario 2:
    
     Expansion is treated as a separate risk pool with new insured paying the total cost of the claims.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
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 0 0
3. Explanation of above estimates (including long-range effect):
    


Memorandum
Person submitting Fiscal Note:
Chip Myers
Email Address:
clifford.m.myers@wv.gov