Date Requested:January 11, 2012
Time Requested:03:35 PM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
2012R1092 Introduced SB56
CBD Subject: PREGNANCY AND CONTRACEPTIVE SERVICES
FUND(S)
2180
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.

    The purpose of this bill is to require insurance coverage of spouses and dependents for pregnancy and contraceptive services.
    Presently the Public Employees Insurance Agency (PEIA) health care benefit does not include providing maternity coverage for dependents other than the spouse of PEIA members.
    Age Enrollment
    16 1,257
    17 1,256
    18 1,382
    19 1,338
    20 1,305
    21 1,257
    22 1,081
    23 857
    24 691
    25 425
    26 16
    Total 10,865
    16-19 Assumption 0.45
    20-26 Assumption 0.85
    16-19 Females 5,233
    20-26 Females 5,632
    Sexually active 7,142.05
    Contraceptive take up rate 0.4
    Projected users of contraceptives 2,856.82
    Annual cost of contraceptives $338.88
    Projected contraceptive cost $968,119.16
    
    Fertility rate 16-19 0.00496
    Fertility rate 20-26 0.111
    Age Deliveries
    16 6.23472
    17 6.22976
    18 6.85472
    19 6.63648
    20 144.855
    21 139.527
    22 119.991
    23 95.127
    24 76.701
    25 47.175
    26 1.776
    Total 651.10768
    Cost per delivery $3,788
    Projected maternity cost $2,466,395.89
    Total Cost $3,434,515.05
    Trend Assumption 1.07
    Projected FY-2012 Cost $3,674,931.11
    
    Assumption will be made that passage of this legislation will only impact dependent children ranging to age 26. For purpose of this projection it is estimated that there will be 26 births in the 16-19 age category and 625 births in the 20-26 age category. It is also estimated that there will be 2,856 contraceptive users.
    The total expected increase in medical health care costs trended at 7% for the next three fiscal years is anticipated to be $12,641,554. This breaks down to $3,563,394 for contraceptives and $9,078,160 for pregnancy. The costs to cover this additional benefit would either have to come from the General Revenue Fund in the form of an appropriation or by increasing premium to both employees and employers.
    FY-2013 $3,932,176
    FY-2014 $4,207,429
    FY-2015 $4,501,949
    TOTAL $12,641,554
    
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
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