ASSUMPTIONS:
1. Effective upon renewal or delivery of every group
and blanket insurance contract on or after January 1, 2012.
2. This legislation requires all individual and group
health insurance policies to provide orthotic and prosthetic devices at a
reimbursement rate equal to the Federal reimbursement rate for the aged and
disabled.
3. The estimated cost for State compliance with the
provisions of the Bill in the self-insured group health plans is based on
forecasted current enrollee utilization by plan administrators.
4. According to Plan Administrators, implementation of
this Act would amount to approximately $210,000 for a full year ($140,700 would
be the state share). Since the Fiscal
Year 2012 contract for the state employee health plan will be issued prior to
January 1, 2012 this legislation does not affect the state plan for Fiscal Year
2012; however should the State Employee Benefits Committee vote to implement
this legislation upon passage, the State would incur the entire cost for Fiscal
Year 2012. There are non-appropriated
special funds available in the Health Fund Surplus to fund this legislation.
5. The cost estimates for Fiscal Years 2013 and 2014
represent the state share (67%) of the estimated basic health insurance policy
cost for Fiscal Year 2012 plus an 8% (industry standard) increase to cover
inflation in medical costs.
Fiscal Year 2012 $
- 0 - ($140,700
NSF – see assumption #4)
Fiscal Year 2013 $152,000
NSF
Fiscal Year 2014 $164,160
NSF
Office of
Controller General
(Amounts are shown in whole dollars)
June 09,
2011
kea:
0311460026