Date Requested:February 23, 2011
Time Requested:11:54 AM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
2011R2066 Introduced HB2876
CBD Subject: MODEL HEALTH PLAN FOR UNINSURABLE INDIVIDUALS
FUND(S)
7161
Sources of Revenue
Special Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

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.

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:
Michael D Riley
Email Address:
Michael.Riley@wvinsurance.gov
    February 2, 2011
    
    Nancy Malecek
    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
    
    Dear Nancy:
    
    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.
    Managing Partner