Hearing devices-insurance coverage. |
12LSO-0172.L2 |
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FISCAL NOTE
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FY 2013 |
FY 2014 |
FY 2015 |
NON-ADMINISTRATIVE IMPACT |
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Anticipated Expenditure Increase: |
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STATE HEALTH PLAN ACCOUNT |
$333,050 |
$85,527 |
$186,042 |
Source of Expenditure Increase:
Spending authority will be used to pay for increased medical claims to the Wyoming State Employees’ & Officials’ Group Plan due to new benefit mandate.
Assumptions:
It is assumed that this bill affects an estimated 128 individuals. The estimate in the table above assumes a $350 deductible with an 80% coinsurance level. It is assumed that 80% of affected individuals would require hearing aids in both ears. Pent up demand assumes an initial surge in claims which would average out by year 4 to an average yearly cost of approximately $186,000 to the State Health Plan Account.
It is estimated that this impact would increase premium rates of the State Employees Group Insurance plan by $22.20 per year, or $1.85 per month. When compared to the total paid claims for the 12 month period ending May 30, 2011, the estimated percentage of these claims to total claims would be 0.18% of the total.
Prepared by: Kelley Shepp / Dean Temte, LSO Phone: 777-7881
(Information provided by: Ralph Hayes, Employees' Group Insurance; 777-5440)