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20-909 Louisiana Health Insurance Association

Program Authorization: Revised Statute 22:231

PROGRAM DESCRIPTION

The Louisiana Health Insurance Association (LHIA), also known as the High Risk Health Insurance Pool , was created during the 1990 Regular Session to establish a mechanism that would insure the availability of health and accident insurance coverage to those citizens of this state who, because of health conditions, cannot secure such coverage. The statue created a board of directors (who serve without compensation) to develop the plan of benefits (described in the statute), accept applications, issue policies and administer claims. The state aid provided through this program, supplemented by participant premiums and investment earnings of the association, enable the association to provide affordable health insurance to those eligible recipients. LHIA will provide an actuarially estimated $18.54 million in paid claims to eligible participants through 1998 (approximately $6.73 million in calendar year 1998 alone). For 1999, the cumulative paid claims will total approximately $26.07 million (with $7.53 million in claims for 1999 alone). LHIA currently serves approximately 746 participants (plus 35 pending) with 192 available slots for open enrollment (without advertising). These positions will be filled shortly and a waiting list begun. The agency's budget consists of state aid, mandated service fees of $421,366, premiums of $2,870,093 and interest earnings of $754,090.

 

RESOURCE ALLOCATION FOR THE PROGRAM

This agency's recommended appropriation does not include any funds for short-term debt.

This agency does not have any long-term debt for Fiscal Year 1999-2000.

SOURCE OF FUNDING

The source of funding for this program is State General Fund direct.

ANALYSIS OF RECOMMENDATION

GENERAL FUND

TOTAL

T.O.

DESCRIPTION

 

 

 

 

 

$2,000,000

$2,000,000

0

 

ACT 19 FISCAL YEAR 1998-1999

 

 

 

 

 

 

 

 

 

BA-7 TRANSACTIONS:

$0

$0

0

 

None

 

 

 

 

 

$2,000,000

$2,000,000

0

 

EXISTING OPERATING BUDGET - November 20, 1998

 

 

 

 

 

$0

$0

0

 

None

 

 

 

 

 

$2,000,000

$2,000,000

0

 

TOTAL RECOMMENDED

 

 

 

 

 

$0

$0

0

 

DIFFERENCE (TOTAL RECOMMENDED AND EXISTING OPERATING BUDGET)

The total means of financing for this program is recommended at 100.0% of the existing operating budget. It represents 100.0% of the total request ($2,000,000) for this program.

PROFESSIONAL SERVICES

This program does not have funding for Professional Services for Fiscal Year 1999-2000.

OTHER CHARGES

$2,000,000

 

Louisiana Health Insurance Association - state aid

 

 

 

$2,000,000

 

TOTAL OTHER CHARGES

ACQUISITIONS AND MAJOR REPAIRS

This program does not have funding for Acquisitions and Major Repairs for Fiscal Year 1999-2000.


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