Date Requested:February 28, 2013
Time Requested:03:39 PM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
2013R1395 Introduced SB22
CBD Subject: MATERNITY AND CONTRACEPTIVE INSURANCE
FUND(S)
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 maternity services for all individuals who are participating in or receiving coverage under a policyholder’s health insurance plan if those services are covered under the policy. It is not the purpose of the bill to exceed the essential health benefits specified under section 1302 (b) of the Patient Protection and Affordable Care Act. Under current West Virginia law, health insurers are not required to cover maternity services for dependents.
    This fiscal note is the same as HB-2383.
    The Patient Protection and Affordable Care Act (PPACA) signed into law on March 23, 2010 by the President already mandates certain preventive health services including contraception without cost sharing for Food and Drug Administration approved contraception methods. The WV Public Employees Insurance Agency (WVPEIA) must already comply with this mandate beginning July 1, 2013. The WVPEIA Finance Board in anticipation of the PPACA mandate for coverage has incorporated the projected costs into the WVPEIA five year financial forecasts.
    The bill does not mandate coverage of maternity care if the care is not mandated by the Federal Health Care Reform Act (PPACA). The WVPEIA understanding is that PPACA does not mandate maternity coverage for dependent children. Therefore, WVPEIA would not have to cover maternity care for dependent children. However, should the situation arise that PPACA does require maternity coverage for dependent children WVPEIA estimates the following number of dependent children and maternity related costs.
    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 there will be 22 births in the 16-19 age category. It is estimated there will be 602 births in the 20-26 age category. Projections utilize CDC fertility rates of 0.0046128 for the 16-19 and .10232 for the 20-26 age categories
    .
    
    AGE DELIVERIES
    
    16 5.4938448
    17 5.3831376
    18 5.4984576
    19 5.8305792
    20 125.64896
    21 124.93272
    22 112.65432
    23 98.02256
    24 78.58176
    25 59.65256
    26 2.25104
    
    TOTAL 623.9499392
    
    
    DELIVERY COST $3,805.00
    
    TREND 7%
    
    PROJECTED COST $2,540,318.58
    
    
    FY-14 $2,718,140.89
    FY-15 $2,908,410.75
    FY-16 $3,111,999.50
    
    TOTAL $8,738,551.13
    
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
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