FISCAL NOTE, 2005 LEGISLATIVE SESSION

FISCAL NOTE 2005-SB138A

SB 138 affect the premiums for persons with guarantee issue health plans.

This bill would require certain health insurance carriers to report a certain part of their premium rate increases, if any, to the Department of Revenue and Regulation's Division of Insurance and that reported amount would be credited to the carrier's premium tax. This bill sunsets on June 30, 2006.

After consultation with the Department of Revenue and Regulation, it is estimated that Senate Bill 138 would have the following impact on the state's finances:

Agency/Item	General Fund	Federal Funds	Other Funds	Total	FTE
Revenue:	($1,264,336)	$0	$0	($1,264,336)
Expenses:	$0	$0	$0	$0	0.0
Net Impact	($1,264,336)	$0	$0	($1,264,336)	0.0

Assuming that premiums otherwise remain constant and there is no increase in lapses, the department estimates this bill would result in a decrease in revenue from the insurance premium tax, which is deposited to the State General Fund, of $1,264,336. Their basis assumes a 38% attributable growth.

APPROVED BY:_______________________________________ DATE:____________