Date Requested:March 06, 2012
Time Requested:10:30 AM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
2012R1975 Amendment SB501
CBD Subject: HEARING AID INSURANCE FOR MINORS
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 health insurers to cover hearing aids for individuals under eighteen years of age, when prescribed by a licensed physician. Coverage is limited as follows: (1) Initial hearing aids and replacement hearing aids not more frequently than every thirty-six months; (2) hearing aids when alterations to the existing hearing aids cannot adequately meet the needs of the covered individual; and (3) services, including audiometric testing, the initial hearing aid evaluation, fitting, and adjustments, and supplies, including ear molds. Covered individuals may have to meet deductibles, coinsurance, or other limitations.
    
    There are approximately 36,994 individuals covered under the Public Employees Insurance Agency (PEIA) program who are under eighteen years of age. It will be assumed for projection purposes that one percent of those under eighteen years of age will take advantage of this benefit. The proposed benefit would cover three hundred seventy (370) individuals who would require hearing aids including all covered services up to $1,400.00. The anticipated cost of hearing aids is $518,000.00 for the thirty-six month period.
    
    The benefit is covered when prescribed by a licensed physician. The PEIA is assuming 400 office visits in conjunction with passage of this bill. This is slightly over the number that will require hearing aids, however It is likely when the benefit becomes available that there will be instances insured will take advantage of the hearing services and not require a hearing aid. The anticipated cost of office visits is $20,000.00 for the thirty-six month period.
    
    Total thirty-six month period cost is anticipated to be $538,000.00
    

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