FUND(S):

7152, 8883

Sources of Revenue:

Special Fund,Other Fund Federal

Legislation creates:

A New Fund



Fiscal Note Summary


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


    SB 408 as proposed is not anticipated to have a material fiscal impact on the direct revenues and costs of state government. (no fiscal impact)
    
    
    Federal implementation grants are available for the establishment and procurement of the exchange's infrastructure. Federal funding for implementation does not require a state match and provides for all expenses incurred through the end of 2015 (includes first year of operations).
    
    
    The proposal qualifies that prior to 2016, the requirements of the exchange are contingent upon sufficient federal funding and in the event of a decrease in anticipated funding from the federal government, the Board may reassess the feasibility and make adjustments as necessary.
    
    
    The Affordable Care Act requires that an exchange be self-sustaining by January 2015. While this will require no state funding, there is a need for fees to be assessed for utilization of the exchange. The amount and source of these fees require further study through the Exchange Board and the Legislature. The ultimate structure and services of the exchange will be determined by future rules and the board. At this time there is insufficent information available to appropriately forecast full-implementation revenues and costs (ie 2015 and on).
    



Fiscal Note Detail


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


Explanation of above estimates (including long-range effect):


    



Memorandum


    The federal implementation grant request is currently projected at approximately $40 million and provides for an estimated 10 FTEs, information systems, operational costs, and outreach efforts.
    
    
    Operating costs of the exchange are directly dependent upon the structure and services provided. There are two exchanges currently in existence. The Utah exchange's annual operating expenses are approximately $650,000 while the quasi-governmental Connector has a $40 million annual budget and 45 employees.
     Person submitting Fiscal Note: Michael D Riley
     Email Address: Michael.Riley@wvinsurance.gov