LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6834 NOTE PREPARED: Dec 23, 2020
BILL NUMBER: HB 1099 BILL AMENDED:
SUBJECT: Medical Payment Coverage.
FIRST AUTHOR: Rep. Schaibley BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
DEDICATED
FEDERAL
Summary of Legislation: The bill specifies that medical payment coverage is supplemental to coverage
under a health plan, but does not require a health plan to provide greater benefits to an individual with
medical payment coverage than an individual without medical payment coverage. It preserves rights of
subrogation available under a health plan.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Most state employees participate in high deductible plans. Accidents
or losses would meet the deductible sooner, potentially resulting in more medical services reimbursement
subject to cost-sharing or full coverage by the state health plans. Costs for the state health plans are shared
between the state and state employees covered by the plans as determined in the plans’ designs, including
premiums, coinsurance, copayments, and deductibles. Any increase in premiums cost may be mitigated with
adjustments to other benefits or to employee compensation packages, or through the division of premium
costs between the state and state employees.
[The state does not provide medical payment coverage, a state health plan beneficiary would purchase
medical payment coverage separate from state benefits.]
Explanation of State Revenues: The bill will have indeterminate impact on insurance premiums overall and
the revenue to the state from either premium tax or adjusted gross income tax.
Additional Information - For medical payment coverage, if fewer people take up the coverage there may be
upward pressure on premiums. However, the downward pressure from subrogation of claims at lower cost
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would reduce premiums.
Explanation of Local Expenditures: The bill potentially impacts local units of government who offer
health insurance coverage for employees through a nonERISA plan. Added local health coverage costs may
be mitigated with adjustments to other benefits or to the total employee compensation packages, or through
the division of costs between the local unit and employees.
Explanation of Local Revenues:
State Agencies Affected: State Personnel Department.
Local Agencies Affected: Local units providing health insurance coverage.
Information Sources: Christy Tittle, State Personnel Department.
Fiscal Analyst: Karen Rossen, 317-234-2106.
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