|Date Requested:February 23, 2011
Time Requested:11:54 AM
| FUND(S) |
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| This bill has no impact on costs or revenues of state government, as
it expands eligibility for premium subsidies to enrollees in the
state's high-risk pool established as the WV Health Insurance Plan and known as AccessWV. Funding for the Plan comes from premium payments and an additional assessment on hospitals collected by the Health Care Authority and transferred to the special revenue account created in WV Code §33-48-7a. The only source of funding for premium subsidies comes from Plan surpluses, which are continually monitored and overseen by Plan actuaries.
A statement from the Plan's actuary is attached to the memorandum section.
|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):
| February 2, 2011
Insurance Market Analyst
West Virginia Offices of the Insurance Commissioner
P.O. Box 50540
Charleston, West Virginia 25305-0540
Subject: Impact of Proposed Expansion to 400% FPL for AccessWV
As the Plan Actuary for AccessWV, the program has asked CCRC Actuaries to assess the financial impact of the proposed expansion to 400% FPL. With the anticipated end date of January 1, 2014 for the program as defined by the Affordable Care Act, the program has a
relatively short period of time to spend the resources that the program had built in anticipation of continued operations. Here are a few observations:
• We ended 2010 with $13.4 million in surplus, not including claim reserves.
• Under the current subsidy program, we are projected to end the program with $9.3 million.
• Current subsidy results through January 2011 are consistent with the assumptions of the last Quarterly Actuarial report of October 2010.
• We will certify that we have enough reserves to expand to 400% FPL.
• In addition, if the subsidy program far exceeds all expectations AccessWV will have the ability to adapt the subsidy program to ensure financial solvency for the program.
Dave Bond, F.S.A., M.A.A.A.