The fiscal impact of this bill as amended by Committee on January 31, 2000 is estimated to be minimal toward most entities that offer health insurance. It could affect policies and increase premiums up to 0.17 percent. Many organizations will be able to absorb the cost increases within existing rates. In the long term, some savings may be accrued to offset some of the expenses. This cannot be quantified at the present time. Organizations which are exempt due to ERISA (Employee Retirement Income Security Act of 1974) would not be required to comply. The State's Public Employee Health Program is not required to adopt the changes to the State Insurance Code, though it has traditionally done so. The bill may require some insurance companies to change their policy forms and re-file them with the Insurance Department. This is estimated to generate approximately $13,800 revenue to the General Fund. An appropriation of $3,000 from the General Fund to the Insurance Department is needed for processing of the rate forms.

Office of the Legislative Fiscal Analyst

2/3/00 2:49:19 PM

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