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





SPONSOR: Sandoval DATE TYPED: 02/23/99 HB 490
SHORT TITLE: Mental Health Insurance Parity Pilot Program SB
ANALYST: Woodlee


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 150.0 Recurring thru FY 2001 General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Relates to House Bill 489



SOURCES OF INFORMATION



General Services Department, Risk Management Division



SUMMARY



Synopsis of Bill



House Bill 490 appropriates $150.0 from the general fund for a pilot program to provide mental health coverage for state employees. This is to include mental illness standard health care insurance which is comparable to services provided for physical illness.



Significant Issues



According to the Agency, the current mental health coverage for state employees meets federal guidelines as of July 1, 1998. Every state employee who opts to be covered by one of the two state health plans automatically receives a separately administered mental health care plan.





FISCAL IMPLICATIONS



The bill appropriates $150.0 from the general fund to the General Services Department's Risk Management Division for expenditure in FY99, FY00, and FY01. Any unexpended or unencumbered balance remaining at the end of fiscal year 2001 will revert to the general fund. There is an emergency clause contain within this bill.



ADMINISTRATIVE IMPLICATIONS



With the additional funds appropriated in this bill, the agency indicates they will be able to develop, conduct, and report on the issues required by the bill.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



Relates to House Bill 489 which prohibits treatment limitations or financial requirements for mental health services beyond those imposed on other insured conditions.



MW/prr