Hearing devices-insurance coverage.

12LSO-0172.L2

FISCAL NOTE

	FY 2013	FY 2014	FY 2015
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
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)