Date Requested: February 06, 2015
Time Requested: 03:31 PM
Agency: Insurance Commission
CBD Number: Version: Bill Number: Resolution Number:
2722 Introduced SB366
CBD Subject: Insurance


FUND(S):

7152

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.


    SB366 will increase the expenses of the Offices of the Insurance Commissioner (OIC) by an estimated $6,500 to $8,000 per year.
    The increased expenses to the OIC are related to the preparation of the annual report on discriminatory practices required by SB366.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 6,000 6,750 7,500
Current Expenses 500 500 500
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 increased expenses are related to the partial allocation of an FTE that would need to be assigned to accumulate the regulatory data necessary to prepare the annual discriminatory practices report and the associated office expenses for the FTE.
    
    This estimate is based on the current market parameters. Currently, the health insurance marketplace has only one carrier participating. However, if the market expands and increased competetion occurs the cost of preparing the required report will also increase.



Memorandum


    SB366 requires the Insurance Commissioner to have carriers who offer health plans on the exchange publish certain information that is relevant to consumers on the carrier's website. It should be noted that this fiscal note is based on the assumption that the OIC will provide a link to the carrier's website in order to meet the requirements of SB366 and that the OIC will not be publishing the required information on the OIC website. The information required by §33-50-2(1) and (2) is available on the carrier's web site. §33-50-2(3) and §33-50-2(4) are generally available on each carrier's website, however, it is not possible to list all possible exclusions or all possible restrictions on quantities of covered items and services.
    
    SB366 also requires that the Insurance Commissioner submit an annual report providing the details of routine market conduct regulatory activities for health insurance carriers participating on the exchange. SB366 also requires that the OIC publish the report on the OIC's website when completed. The increased expenses to the OIC are related to the preparation of the annual report.



    Person submitting Fiscal Note: Melinda Kiss
    Email Address: Melinda.Kiss@wvinsurance.gov