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F I S C A L I M P A C T R E P O R T
SPONSOR Feldman
DATE TYPED 03/01/05 HB
SHORT TITLE Wellness Program Health Insurance Incentives
SB 745
ANALYST Geisler
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to: SJM 10
SOURCES OF INFORMATION
LFC Files
Responses Received From
Public Regulation Commission (PRC)
Department of Health (DOH)
Health Policy Commission (HPC)
SUMMARY
Synopsis of Bill
SB 745 amends adjusted community rating to permit insurers to offer discounts or credits when
qualified wellness and disease management programs are provided as a part of coverage. This
applies to individual and small employer group health insurance.
The qualified program shall: 1) meet federal requirements under HIPPA, 2) provide financial
incentives to covered individuals and 3) provide reasonable alternatives to non-participants. The
rating factors may take into consideration: 1) anticipated participation, 2) anticipated incentives,
3) historical participation, 4) expected success rates, 5) clinical studies and 6) the insurer’s ex-
perience.
Significant Issues
Investment in wellness and disease management programs can reduce future health care costs. If