LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 387 HLS 21RS 573
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 26, 2021 8:17 PM Author: GREEN
Dept./Agy.: Insurance
Subject: Network Leasing Act for dental insurers Analyst: Patrice Thomas
INSURERS EN SEE FISC NOTE SG RV See Note Page 1 of 1
Provides relative to network leasing by dental insurers
Proposed law creates the Network Leasing Act to enhance contractual transparency between dental carriers, dentists, and
third parties. Proposed law authorizes the commissioner of insurance to regulate and enforce the Network Leasing Act,
including imposing remedies or penalties authorized by the act. Proposed law does not apply if the provider network
contract for dental services is provided to beneficiaries of state-sponsored Medicaid and LaCHIP programs. Proposed law
effective for contracts issued or renewed after 8/01/2021.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure. The proposed law
authorizes the Commissioner of Insurance to regulate and enforce the newly enacted Network Leasing Act, including
imposing remedies or penalties. The Department of Insurance reports that it is capable of handling any workload impact
arising from the proposed law with existing budgetary and personnel resources.
The Office of Group Benefits does not provide dental insurance or dental benefits as part of its self-funded health plans;
thereby the proposed law does not impact the agency.
REVENUE EXPLANATION
Proposed law will have an indeterminable impact on SGR revenues for the Department of Insurance. The proposed law
authorizes the Commissioner of Insurance to impose penalties on parties in violation of the Network Leasing Act. Penalties
are used to mitigate the expenses of the state. The Legislative Fiscal Office cannot determine the number and cost of
penalties that would be imposed under this measure or anticipate the amount of revenue collected by the Department of
Insurance from penalties in future fiscal years.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director