Wyoming health insurance pool-premiums.

13LSO-0216.L1

FISCAL NOTE

This bill freezes the premiums for the Wyoming Health Insurance Pool and may result in larger assessments to offset claims and additional expenditure of the General Fund appropriation to be used.  The average increase in premium rates over the last four years has been 4.875% for the Non-Disabled Plan, and 3.625% for the Disabled Plan.  Pursuant to W.S 26-43-105(d), the Pool can assess up to $6,000,000 per year for Level One operations and claims.  Insurance companies are able to claim premium tax credits on amounts assessed.  The Pool has a General Fund Appropriation of $2,760,000 per fiscal year (this figure includes the 8% budget reduction) for Level Two operations and claims.  The Department of Insurance does not expect that this bill will cause the Pool to use more than the appropriated amount, or more than the amount available to be assessed.  This assumption is based on a four year average of premiums received and premium increases, and actual amounts used will vary depending on actual claims, enrollment,  and premiums received into the Pool.  The Pool is scheduled to sunset on 6/30/2015.

Prepared by:   Kelley Shepp, LSO     Phone: 307-777-7881

(Information provided by: Peter Greff, Department of Insurance

Phone: 307-777-2448)