FISCAL NOTE
FUND(S):
0407 - Central Office General Administrative Fund, 5125 - Family Planning - State Funds Fund, 8750 - Fed Block Grants Maternal/Child Health Prog Fund, 8802 - Public Health-Federal Fund
Sources of Revenue:
General Fund,Special Fund,Other Fund Federal
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 and contraceptive 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. Under current law, health insurers are not required to cover maternity or contraceptive services for dependents.
Passage of Senate Bill 22 would potentially reduce Office of Maternal, Child and Family Health (OMCFH) expenditures for maternity and contraceptive care by $112,021.
These estimates of reduction in expenditures would come from General Revenue, Special Revenue and Federal Revenue.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2013
Increase/Decrease
(use"-") |
2014
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-112,021 |
-112,021 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
-112,021 |
-112,021 |
| 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):
Senate Bill 22, which generally requires health insurance coverage of maternity and contraceptive services in certain circumstances, may reduce expenditures for the Office of Maternal, Child and Family Health (OMCFH). Through the Maternity Services project, OMCFH provides limited funding of prenatal, delivery, postpartum and routine newborn hospital care for low income, medically indigent pregnant women who are determined to be ineligible for Medicaid, have no insurance to cover obstetrical care and have a monthly income below 185% of the federal poverty level. In 2012, the Maternity Services Project covered maternity/postpartum care for 397 women, at a cost of $490,820 ($1,236.32 per client). The Maternity Services population consists of approximately 63 teens who could potentially be dependents covered under a policyholder’s health insurance plan if those services are covered under this policy; this would be an estimated saving of $77,888.
In 2012, the Family Planning Program provided contraceptive services for 319 individuals who were ineligible for Medicaid, underinsured, and had monthly income below 250% of the federal poverty level, at a cost of $34,133.
Estimated savings for the Family Planning Program are based on the number of uninsured/underinsured clients receiving services in 2012 (319), multiplied by a cost per client factor of $107/client/year. Family Planning Program clients are considered “underinsured” if the private insurance company or Health Maintenance Organization does not cover family planning/contraceptive medical services. Cost savings could potentially be higher than the figure quoted above, as data are unavailable on the number of teens/young adults receiving Family Planning Program services and covered under parent insurance plans (which do not cover contraceptive services).
Passage of Senate Bill 22 would potentially reduce OMCFH expenditures for maternity and contraceptive care by $112,021.
Memorandum
Person submitting Fiscal Note: Rocco S. Fucillo
Email Address: dhhrbudgetoffice@wv.gov