This bill may have a significant fiscal impact to State and local government, as well as private employers. Health insurance premiums could increase between 0.5 percent and 10 percent depending on the rules established by the State Insurance Department and the effect this has on the coverage in effect by the insurer. The State has traditionally followed the State insurance code, however, the State is not required to participate. Therefore, the Analyst could not show that new funding would definitely be required. If the State elects to participate, the State paid premiums are estimated to increase $787,500 from all funding sources. The cost to local government entities could be more than $300,000 if they adopt these changes. There will be an increased revenue of $18,600 to the State Insurance Department for policy change filing fees and additional costs of $2,000 to effect the rule changes.

Office of the Legislative Fiscal Analyst

2/11/99 10:00:15 AM

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