FISCAL NOTE
Date Requested: February 13, 2024
Time Requested: 04:37 PM |
| Agency: |
Risk and Insurance Management, Board of (BRIM) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3775 |
Introduced |
HB5688 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
2360 State Special Insurance Fund or 2363 Public Entity Insurance Trust Fund
Sources of Revenue:
Special Fund Special Fund Both funds 2360 and 2363
Legislation creates:
Creates New Revenue, Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed legislation, upon passage, would dramatically increase the complexity of BRIM’s medical malpractice coverage. As defined in the bill, an accredited academic hospital, while non-profit, would be eligible for BRIM professional liability insurance but the bill does not make these entities an agent of the state. It does allow for these hospitals to have coverage limits like the medical school’s limits but does not provide constitutional immunity.
This bill would increase costs to the BRIM program as well as increase revenues. BRIM would need substantial data to properly interpret the extent of the increases and involve the services of our independent actuary.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
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 |
Explanation of above estimates (including long-range effect):
The zeros in the above table do not represent an actual cost or revenue estimate. The true value is unascertainable currently as BRIM does not have the relevant data to calculate the required premium and actual costs of this program. Some examples of the needed data include full time equivalent employees, types of medical professionals, numbers of beds, claims history, years in practicing medicine by medical professional, and specialty by physician/surgeon. There are many more variables that BRIM’s actuaries would need to provide a calculation for anticipated future expenses and revenues.
In addition to estimating for the accredited academic hospital itself, is the need for additional BRIM staff to effectively manage the underwriting, claim handling and loss control services for this new program. BRIM would also need to determine the cost of the insurance itself either with the current contract with the insurance carrier or some other mechanism for coverage. It is reasonable to assume that there would be substantial increases in expenses and revenues for this added group of insureds in the BRIM medical malpractice program.
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: Melody Duke
Email Address: melody.a.duke@wv.gov