Colorado Legislative Council Staff

STATE

REVISED FISCAL IMPACT

(replaces no fiscal impact dated January 27, 1999)

TITLE:            CONCERNING A REQUIREMENT THAT HEALTH CARE PRACTITIONERS PARTICIPATING IN PERSONAL INJURY PROTECTION EXAMINATION REVIEW PANELS BE ACTIVELY ENGAGED IN PRACTICE AT THE OFFICE LISTED WITH THE COMMISSIONER OF INSURANCE.

Summary of Legislation

            The reengrossed bill makes changes to the Personal Injury Protection (PIP) statutes by requiring that any health care practitioner who participates in a PIP examination review panel to be actively engaged in practice at the office listed with the Commissioner of Insurance, Division of Insurance, Department of Regulatory Agencies. The bill further modifies the current requirement that the majority of such practice and income not be derived from witness fees and examinations of persons not under the practitioner's care and treatment.

            The provisions of this reengrossed bill require health care practitioners, who participate in PIP examination review panels, to conduct a majority of their practice and earn a majority of their income at the office listed with the division. As amended in the House of Representatives, the bill further requires that if there are less than five registered health care practitioners located within the injured party's zip code, then those registered practitioners located within a 50 mile radius of the zip code must be considered for the PIP review. The radius would expand until five registered health care practitioners are included in the panel from which the insurer, insured, or injured person may select a registered practitioner to conduct the required PIP examination.

            The selection is made through a process of both sides eliminating two names each. The PIP examiner determines whether the treatment that has been rendered is reasonable, necessary, and if such claimed injury or condition arises out of the use of a motor vehicle.

State Revenues

            The PIP examination program is funded by assessments paid by insurers authorized to write motor vehicle insurance in Colorado. The Division of Insurance would increase the current fee paid by insurers by $8 in FY 1999-00 to fund additional one-time costs of the PIP examination program. It is estimated that this will generate cash fund revenues of $24,928 ($8 times 608 insurers) in FY 1999-00.

State Expenditures

            The PIP examination program, including the registration of health care practitioners and the preparation of the list of practitioners, is managed by the Division of Insurance, Department of Regulatory Agencies, under contract with a private vendor. The result of this bill will require the vendor to modify the current data base in order to include zip code data, sort by "zip code", and search by increasing radii. It is estimated that this will require 208 hours of contract computer programming at an estimated cost of $120 per hour or a one-time cost of $24,960 in FY 1999-00.

State Appropriations

            This fiscal note implies that the Department of Regulatory Agencies should be appropriated $24,960 from the Division of Insurance Cash Fund to the Division of Insurance.

Departments Contacted

            Regulatory Agencies