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F I S C A L I M P A C T R E P O R T

SPONSOR King

ORIGINAL DATE

LAST UPDATED

2/08/07

2/08/07 HB 589

SHORT TITLE PRC Approval of Certain Appointments

SB

ANALYST Earnest

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

NFI

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 563

Relates to HB 652.

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

House Bill 589 would amend the insurance code to provide the PRC additional authority over

Insurance Division matters.

•

Section 1 would require approval of all appointments made by the superintendent of

Insurance to boards, commissions or groups, etc.

•

Section 2 would provides for PRC review of all orders of the superintendent of

insurance as part of the appeal process; and

•

Section 3 would provide for commission review of all managed health care

determinations made by the external grievance appeals panel pursuant to the Patient’s

Protection Act, as amended by Section 4 of the bill, providing right to appeal.

House Bill 589 – Page

2

FISCAL IMPLICATIONS

The bill would bring addition administrative costs in providing a level of review by the PRC.

PRC notes, however, that such costs and time allocations cannot be determined at this time.

Historically few cases have been appealed and it appears that any such cost can be absorbed in

the general operation of the commission.

ADMINISTRATIVE IMPLICATIONS

PRC will need to adopt procedural regulations governing the process of seeking their review of

insurance decisions and appointments.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 589 duplicates Senate Bill 563 and relates to House Bill 652.

BE/nt