Date Requested:March 02, 2011
Time Requested:10:57 AM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
2011R2110 Comm. Sub. Eng. HB2693
CBD Subject: INSURANCE COVERAGE FOR AUTISM SPECTRUM DISORDERS
FUND(S)
7161, 7152
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.

    ACCESS WEST VIRGINIA
    
    Although AccessWV is not directly named in the bill, the fact that AccessWV benefits are to be “commensurate with health insurance coverage provided through a representative number of large employers in the state“ [§33-48-8(b)] implies this becomes mandated coverage under AccessWV policies as well.
    
    
    The required benefits are for individuals 3 – 18 years of age. AccessWV membership is primarily older: 55% are >50 years old. The program currently has 32 members less than age 25, the first age band. Assuming the reported prevalence of 1 in 110 children (0.09%), 3 children in the current membership might require services; estimating the maximum of $30,000 per year, the current Plan cost estimate is $90,000 per year.
    
    
    Historically, the addition of a mandated service has increased the demand for that service, such that future Plan membership has a higher prevalence of autism diagnoses. AccessWV is funded by members' premiums and hospital assessments.
    
    
    
    OFFICES OF THE INSURANCE COMMISSIONER ONLY
    
    HB 2693 would have a nominal impact on the revenues and expenditures as they directly relate to the regulatory responsibilities of the Offices of the Insurance Commissioner.
    
    
    Commercial insurers would file rates and forms incorporating the increased benefits, but the process for filing and review at the state would remain unchanged, so no fiscal impact as it relates to the operations of the Offices of the Insurance Commissioner.
    

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 90,000 120,000
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):
    The estimated costs provided are for AccessWV only.
    
    FY 2012 - Assumption is 3 of the current membership may require the services.
    
    3 * $30,000 = $90,000
    
    Full Implementation - it is reasonable to expect the addition of a mandated benefit leads to increased demand for that service. Future years estimate is for 4 members - 4 * $30,000 = $120,000.


Memorandum
Person submitting Fiscal Note:
Michael D Riley
Email Address:
Michael.Riley@wvinsurance.gov