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

SPONSOR SCORC

ORIGINAL DATE

LAST UPDATED

1/28/07

1/30/07 HB

SHORT TITLE Claims Data to Other Health Insurers

SB CS/257/aSJC

ANALYST Wilson

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Regulation Commission (PRC)

SUMMARY

Synopsis of SJC Amendment

The Senate Judiciary Committee amendment to Senate Corporation and Transportation

Committee Substitute for Senate Bill 257 removes the language requiring the superintendent of

insurance to promulgate rules to carry out the provisions of this bill.

The amendment requires an insurer to provide an employer to provide certain data within 60

days if certain conditions are met. The requested data cannot violate state and federal privacy

laws.

Synopsis of Original Bill

Senate Corporation and Transportation Committee Substitute for Senate Bill 257

amends the

Insurance code to provide that the Superintendent of Insurance shall promulgate reasonable rules

and plans for the sharing of information or data necessary for rating plans.

Senate Bill CS/257/aSJC – Page

2

FISCAL IMPLICATIONS

There is no fiscal impact as the provisions of this bill are part of the ongoing responsibilities of

the Division of Insurance (DOI).

SIGNIFICANT ISSUES

Employers need claims data in order to shop for quotes at renewal time. This sharing of

information is necessary for a competitive market place in employer-sponsored health insurance.

The intent of this bill is to make sure such information is available in such detail and in a timely

manner to allow an employer to shop for the best deal. This is particularly important when an

employer has received notice of a substantial rate increase.

This bill is also intended to promote uniformity in administration of rate regulatory laws with

other states.

ADMINISTRATIVE IMPLICATIONS

This bill requires the Superintendent of the DOI to conduct a rulemaking to promulgate

reasonable rules. The DOI is already staffed to conduct rulemaking hearings and to promulgate

reasonable rules.

POSSIBLE QUESTIONS

Shouldn’t the bill require the Superintendent to include timeliness standards of the transfer when

establishing rules for the information transfer.

DW/nt