Date Requested: February 10, 2017
Time Requested: 09:27 AM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
1301 Introduced HB2016
CBD Subject: Insurance, Military and Veterans


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 make active and inactive military members eligible for the PEIA plan as employees.
    
    The population of this fiscal note is all active armed forces, reserve forces and national guard currently in WV, increased by a factor of 250% to account for inactive personnel. This number is then multiplied by 50% for the percentage that would accept PEIA. This is performed due to active personnel are covered by the federal insurance Tricare and some inactive personnel may already have insurance coverage. There are currently 8,350 active personnel in WV. Applying the above adjustments to this number results in a final assumption of 14,613 new policies in PEIA.
    
    The fiscal note doesn’t indicate who will pay the employer premiums for these newly eligible members. This fiscal note assumes the State of WV will assume these costs at 80% per WV §5-16. The current per employee claim cost of $681 has been applied to the new policies and trended at 6% per year.
    
    FY 18 $101,262,521
    FY 19 $107,338,272
    FY 20 $113,778,568
    



Fiscal Note Detail


Effect of Proposal Fiscal Year
2017
Increase/Decrease
(use"-")
2018
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 101,262,521 101,262,521
Personal Services 0 0 0
Current Expenses 0 101,262,521 101,262,521
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    



Memorandum


    



    Person submitting Fiscal Note: jason haught
    Email Address: jason.a.haught@wv.gov