§ 2-7-73. Bills and resolutions mandating health insurance coverage shall have fiscal impact statement.

281 words·~1 min read·/sc/title-2-general-assembly/chapter-7/legislative-enactments/2-7-73·

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(A)Any bill or resolution which would mandate a health coverage or offering of a health coverage by an insurance carrier, health care service contractor, or health maintenance organization as a component of individual or group policies, must have attached to it a statement of the financial impact of the coverage, according to the guidelines enumerated in subsection (B). This financial impact analysis must be conducted by the Revenue and Fiscal Affairs Office. The Department of Insurance shall provide an actuarial analysis and any additional information necessary for the determination of the fiscal impact within thirty days of a request by the Revenue and Fiscal Affairs Office. The statement required by this section must be delivered to the Senate or House committee to which any bill or resolution is referred, within thirty days, unless otherwise agreed to, of the written request of the chairman of such committee.

(B)Guidelines for assessing the financial impact of proposed mandated or mandatorily offered health coverage to the extent that information is available, must include, but are not limited to, the following:

(1)to what extent does the coverage increase or decrease the cost of treatment or services;

(2)to what extent does the coverage increase or decrease the use of treatment or service;

(3)to what extent does the mandated treatment or service substitute for more expensive treatment or service;

(4)to what extent does the coverage increase or decrease the administrative expenses of insurance companies and the premium and administrative expenses of policyholders; and

(5)what is the impact of this coverage on the total cost of health care.