OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sSB-815

AN ACT ESTABLISHING A COMMISSION ON HEALTH CARE POLICY, COST CONTAINMENT AND PRICE VARIATION.


OFA Fiscal Note

State Impact: See below

Municipal Impact: None

Explanation

The bill establishes a new Commission on Health Care Policy and Cost Containment and enumerates its various duties and responsibilities. The Commission is established as an independent commission, not subject to the control of any executive officer or agency. It is required to appoint an executive director, who is responsible for the administrative affairs and general management of the commission.

Based on the various requirements detailed in the bill, it is assumed that the Commission will require extensive administrative resources to accomplish its duties. The extent of these costs will depend upon the number of employees hired by the Commission as well as any potential contracts undertaken, which cannot be known in advance. For purposes of comparison, the Department of Public Health's Office of Health Care Access (OHCA) has some similar broad health oversight responsibilities. In FY 15 OHCA employed 19 full time employees and had Personal Services and Other Expenses costs totaling $1.9 million. The new Commission would further incur related fringe benefit and indirect overhead costs. Based on the OHCA staffing levels and the current ratios for special fund state agencies, these related costs could total an additional $1.4 million.

The bill does not specify whether the Commission is a General Fund agency, nor whether its employees would receive state benefits. Therefore, it is unclear whether costs related to the Commission would be considered state costs.

The bill specifies that the Commission may access health care providers and health insurance carriers in order to defray the costs related to the Commission. The bill does not specify the details of this assessment.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.