OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-6600

AN ACT CONCERNING THE ESTABLISHMENT OF THE SUSTINET PLAN.

AMENDMENT

LCO No.: 8220

File Copy No.: 996

House Calendar No.: 403

Senate Calendar No.: 674

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 12 $

Public Health, Dept.

GF - Cost

79, 000

Comptroller Misc. Accounts (Fringe Benefits) 1

GF - Cost

19, 650

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment strikes the underlying bill, eliminating its major fiscal impacts, and replaces it with language resulting in the various fiscal impacts below:

Sec. 1 requires the Department of Public (DPH) health to submit a state-wide health information technology plan, to be developed according to Sec. 19a-25d of the general statutes, and does not result in a fiscal impact.

Sec. 2 tasks various legislative and executive branch leaders with designating a lead health information exchange organization in the state and, along with Sec. 3, creates requirements for that organization. These sections do not result in a fiscal impact.

Sec. 4 requires the DPH to develop conflict of interest policies applicable to the above organization's board of directors, employees and agents, in consultation with the Attorney General and within existing budgetary resources. It is anticipated that the Attorney General will be able to assist the DPH with this responsibility within its normally budgeted resources.

Section 5 establishes a Connecticut Health Care Cost Containment Authority, as of July 1, 2011, and specifies that it is not a department, institution or agency of the state. The bill further specifies that public funds may be expended to meet its purposes. At this time, no future public funds for this purpose are identified.

Section 7 requires the Department of Public Health, in collaboration with the State Comptroller, to establish a pilot shared decision-making project (“shared decision making” is defined in Sec. 6) and report on the same by July 1, 2012. In FY 12, the Department will require 1 Epidemiologist, at an annualized salary of $79, 268, and other expenses and equipment costing approximately $1, 750. It is anticipated that the Office of the State Comptroller will participate to the extent that its resources allow.

Sources:

Department of Public Health

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

1 The fringe benefit costs for state employees are budgeted centrally in the Miscellaneous Accounts administered by the Comptroller on an actual cost basis. The following is provided for estimated costs associated with additional personnel. The estimated non-pension fringe benefit rate as a percentage of payroll is 25.43%. Fringe benefit costs for new positions do not initially include pension costs as the state's pension contribution is based upon the 6/30/08 actuarial valuation for the State Employees Retirement System (SERS) which certifies the contribution for FY 10 and FY 11. Therefore, new positions will not impact the state's pension contribution until FY 12 after the next scheduled certification on 6/30/2010.