FISCAL NOTE
Date Requested: February 12, 2025
Time Requested: 07:17 PM |
| Agency: |
Public Employees Insurance Agency (PEIA) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2876 |
Introduced |
HB2044 |
|
|---|
| CBD Subject: |
Counties; Insurance; Municipalities |
|---|
|
FUND(S):
PEIA Basic Insurance
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill relates to providing employers that withdraw from participation in a PEIA plan a five-year grace period within which to rejoin. The bill also restricts this allowance to employers participating in the plan as of July 1, 2025.
PEIA believes this bill will have minimal fiscal impact on the non-State Fund of approximately 1 – 2% due to exposure to anti-selection without a minimum waiting period for re-entry. Without a waiting period or other restriction on the entry process, existing employers would be able to move without restriction during the 5-year period.
Per FY ’26 claim costs, PEIA estimates the fiscal impact to the non-State Fund to be an increase in claim costs of $2 million with a rate of 1% anti-selection and $4 million at 2%.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
2,000,000 |
2,000,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
2,000,000 |
2,000,000 |
| 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):
PEIA believes this bill will have minimal fiscal impact on the non-State Fund of approximately 1 – 2% due to exposure to anti-selection without a minimum waiting period for re-entry. Without a waiting period or other restriction on the entry process, existing employers would be able to move without restriction during the 5-year period.
Per FY ’26 claim costs, PEIA estimates the fiscal impact to the non-State Fund to be an increase in claim costs of $2 million with a rate of 1% anti-selection and $4 million at 2%.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Jason Haught
Email Address: jason.a.haught@wv.gov