122nd MAINE LEGISLATURE
LD 1935 LR 2809(20)
An Act To Protect Health Insurance Consumers
Fiscal Note for Senate Amendment "   "
Sponsor: Sen. Mayo
Fiscal Note Required: Yes
   
             
Fiscal Note
Projections Projections
2005-06 2006-07 2007-08 2008-09
Appropriations/Allocations
Other Special Revenue Funds $0 $50,000 $50,000 $50,000
Revenue
Other Funds $0 ($8,700,000) $0 $0
Fiscal Detail and Notes
By prohibiting third party administrators from passing on the savings offset payment (SOP), this amendment could result in saving to the State Employee Health Plan from the $2.9 million budgeted to pay for the SOP for FY 2006-07.  The General Fund share of these savings would be approximately $1.2 million. The amendment provides for a review process that may still allow the third party administrator to pass on these costs.
Assumes the Bureau of Insurance in the Department of Professional and Financial Regulation will require an additional Other Special Revenue Funds allocation of $50,000 for the additional costs related to the third party administrator provisions of this amendment.  The allocation is needed for the costs of contracted external expertise the Bureau anticipates it will need.
Assumes the amendment's decrease in the 2006 savings offset payment (SOP) would reduce Dirigo Health program revenue by $8,700,000 for fiscal year 2006-07. While the amendment does not specify offsets to this revenue reduction, the program has existing authority to keep program spending within available resources.