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 insurance coverage for eosinophilic disorders. The Public Employees Insurance Agency covers diagnosis and treatment of eosinophilic disorders. Enteral/Parenteral feeding is currently covered when it is medically life sustaining to the patient. It is not covered as a supplement to the diet. Only total parenteral nutrition (TPN) or total nutrient admixture (TNA) when no food is given by other routes is covered. Coverage requirements for enteral nutrition supplements are contingent on the beneficiary must have a permanent functional impairment of the gastrointestinal tract, enteral nutrition supplements must be reasonable and necessary for the beneficiary and the beneficiary must require tube feeding to maintain weight and strength commensurate with their overall health status. Today’s Dietician reports that no medication can cure food allergies. The only way to prevent it is to avoid allergenic foods. Since January 2006 the Food Allergy Labeling and Consumer Protection Act requires manufacturers to identify on all product packaging ingredients derived from eight commonly allergenic foods: milk, egg, soybean, wheat, peanut, tree nut, fish and crustacean shellfish. Gastro Kids also reports, medication does not appear to be as effective as dietary changes in the treatment of eosinophilic esophagitis. Adults 160,404 Children 60,136 Infants (Under 18 months) 2,864 Total Enrollment 223,404 Probability of esophagitis non-infants 0.0005 Probability of esophagitis infants 0.04 Esophagitis non-infant duration in days 60 Esophagitis infant duration in days 365 Probability of e. gastritis 0.000285714 E. gastritis duration in days 60 Expected number of esophagitis days 48,425 Non-infants 6,616 Infants 41,809 Expected number of e. gastritis days 3,829.78 Cost per day of coverage 120.00 Expected Esophagitis cost $ 5,811,036 Expected E. Gastritis Cost $ 459,574 Total Annual cost $ 6,270,610 FY 2013 $ 6,270,000 FY 2014 $ 6,770,000 FY 2015 $ 7,310,000 Three year total cost $20,350,000 The total expected increase in medical health care costs trended at 8% for the next three fiscal years is anticipated to be $20,350,000. FY-2013 $6,270,000 FY-2014 $6,770,000 FY-2015 $7,310,000 Total $20,350,000

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	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

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

Memorandum

Person submitting Fiscal Note: Chip Myers
Email Address: clifford.m.myers@wv.gov