Medical review panel-2.

05LSO-0307.C1

                                                         

FISCAL NOTE

 

Revenue Increase:

 

This legislation creates a Medical Review Account within the Earmarked Revenue Fund.  There appears to be no funding mechanism for the first year.  Funding in subsequent years would be funded from assessments levied against and paid by each health care provider covered by this legislation. 

 

Source of Revenue Increase:

The legislation establishes the assessments based on the total amount of the panel’s proposed annual budget to be prorated among the classes of health care providers covered by this act based on the number of cases reviewed by the panel during the immediately preceding calendar year involving each such class of health care providers.  The prorated amount determined for each class of health care provider shall be divided by the number of practicing providers within each class of health care providers to determine the individual assessment.  

 

Expenditure Increase:

 

Non-administrative expenditures would consist primarily of panel member compensation as provided for in the bill.  These expenditures would be entirely offset by health care provider assessments up to the panel’s proposed annual budgets in all but the first year.  Expenditures would be dependent on the number of hearings and the length of hearings. 

 

Assumptions:  This assumes that as written, the bill only provides for hourly compensation of panel members while taking part in actual hearings, not while preparing for hearings (e.g. claims review.)

 

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

 

Attorney General’s Office

 

 

 

Prepared by:     Wendy Madsen, LSO            Phone:  777-7881

(Information provided by Matthew Petry, Attorney General’s Office, telephone:  777-7480)