LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 578 HLS 23RS 858
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 7, 2023 9:18 AM Author: GLOVER
Dept./Agy.: Insurance, Office of Group Benefits, and Medicaid
Subject: Coverage for Smoking Cessation Benefits Program Analyst: Patrice Thomas
HEALTH/SMOKING EN SEE FISC NOTE See Note Page 1 of 1
Provides relative to a smoking cessation benefits
Proposed law mandates coverage of a comprehensive smoking cessation benefits program by all private insurance plans and
Medicaid. Proposed law requires six (6) months of smoking cessation benefits with a licensed physician recommendation
and certification that benefits may help the person quit smoking. Proposed law provides all smoking cessation benefits are
paid by private insurance, or Medicaid, meaning not subject to any co-payments, deductibles, and other cost-sharing.
Proposed law provides the LA Department of Health (LDH) to promulgate rules and regulations and to promote the smoking
cessation benefits through a statewide campaign. Proposed law effective January 1, 2024 (new health coverage plans) and
no later than January 1, 2025 (existing health coverage plans).
EXPENDITURES 2023-24 2024-25 2025-26 2026-27 2027-28 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 SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
REVENUES 2023-24 2024-25 2025-26 2026-27 2027-28 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
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on state governmental expenditures as a result of this measure. Currently, all
self-funded health plans by the Office of Group Benefits (OGB) cover smoking deterrent products to members with no cost
share. The LA Department of Health (LDH), Medicaid program provides coverage for smoking cessation services without a
co-payment. In addition, LDH is currently in the process of promulgating rules through the Administrative Procedure Act
(APA) to expand coverage for tobacco cessation counseling to all Medicaid beneficiaries. Therefore, the proposed law is not
anticipated to have an impact on healthcare expenditures within LDH or OGB.
The effect of this proposed law on local governmental expenditures is indeterminable. To the extent private insurers
increase premiums of health insurance plans to local governmental units as a result of providing coverage for comprehensive
smoking cessation benefits without co-payment, deductibles, or other cost-sharing, the proposed law may result in an
indeterminable increase to local governmental expenditures.
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
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}
Evan Brasseaux
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} Interim Deputy Fiscal Officer