NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.





F I S C A L I M P A C T R E P O R T





SPONSOR: Stewart DATE TYPED: 02/18/01 HB 59/aHBIC
SHORT TITLE: Prescriptive Contraceptive Drug Coverage SB
ANALYST: Valenzuela


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02

NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCE OF INFORMATION



Public Regulation Commission



SUMMARY



Synopsis of HBIC Amendment



The House Business & Industry Committee adds an exclusion for a religious entity purchasing individual or group health coverage. They are exempted under the amendment from having to comply with the requirement to include contraceptive drugs or devices in the health care they purchase.



Synopsis of Original Bill



HB 59 require that health insurers provide coverage for prescription drugs or devices approved by the Food and Drug Administration.



FISCAL IMPLICATIONS



There is no fiscal impact to the State since the plans for State employees, retirees and public school employees already cover prescription contraceptives.



ADMINISTRATIVE IMPLICATIONS



Minimal. The Division of Insurance already reviews all health plans operating in the State. If this bill passes some companies may have to refile.







OTHER SUBSTANTIVE ISSUES



There is no consensus about how much this will cost the insurance companies and ultimately the premium payers. The cost of contraceptives is less expensive than abortions or deliveries.



This bill may create a problem for religious employers whose beliefs are in conflict with birth control.



The health insurance industry is against mandated benefits.



Since some current plans authorize payment for Viagra for males, questions are often raised about the need to authorize payment.

DW/ar