Cost Estimates

The Departments estimate that there will be about 77,000,000 SBC responses
(including coverage examples) in 2012.
The Departments assume that of the total number of SBC responses, 38% would
be provided electronically in the small and large group markets. Accordingly,
the Departments estimate that about 29,000,000 SBCs would be electronically
distributed, and about 48,000,000 SBCs would be distributed in paper form. The
Departments assume there are no costs associated with electronic disclosures;
there are costs only with regard to paper disclosures.
The Departments estimate grayscale printing costs at $0.03 per single side of a
page.
The Departments assume that in 2012, issuers and TPAs will begin responding
to requests of covered individuals for paper copies of the uniform glossary, and
that 2.5% of covered individuals who receive the SBC in paper form will request
glossaries (that is, about 1,200,000 glossary requests) . The Departments
estimate the cost of providing the glossary in paper form to be 2.5% of the cost
of distributing the paper copies of the SBC, plus an additional cost burden for
$0.49 for each glossary (including $0.44 for first-class postage and $0.05 for
supply costs).
The estimated cost burdens for the collections of information are as follows:
Cost Burden for Printing SBCs
Printing Costs

Cost per SBC

Total SBCs

Total Cost Burden

$0.12

48,000,000

$5,800,000

Printing Cost Per Coverage
Example

Total Number of Coverage
Examples Printed

Total Cost Burden

$0.06

48,000,000

$2,900,000

Cost Burden for Printing Coverage examples
Printing Costs

Cost Burden for Printing and Mailing Uniform Glossaries
Printing Costs

Printing Cost Per
Glossary

Mailing Costs Per
Glossary

Total Glossaries
Requested/Printed

Total Cost Burden

$0.12

$0.49

1,200,000

$730,000

2013 Cost Burden Estimate
The Departments make the same assumptions regarding the number of SBC
responses (including coverage examples), electronic distribution, and printing
costs in 2013 as in 2012.
The Departments assume that in 2013, issuers and TPAs would begin sending
notices of modifications to covered individuals and that 2% of covered
individuals would receive such notice (that is, about 1,500,000 notices). The
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Departments estimate the cost of providing the notices to be 2% of the cost of
the providing SBCs (including coverage examples). Notices are assumed to be
equal in length to the SBC (that is, six (6) sides of a page).
The Departments assume 5% of covered individuals who receive the SBC in
paper form will request paper copies of the uniform glossary (that is, about
2,400,000 glossary requests). The Departments estimate the cost of providing
the notices to be 5% of the cost of distributing paper copies of the SBC and make
the same assumptions about postage and supply costs in 2013 as in 2012.
The estimated cost burdens for the collections of information are as follows:
Cost Burden for Printing SBCs
Printing Costs

Cost per SBC

Total SBCs

Total Cost Burden

$0.12

48,000,000

$5,800,000

Printing Cost Per Coverage
Example

Total Number of Coverag
Examples Printed

Total Cost Burden

$0.06

48,000,000

$2,900,000

Cost Burden for Printing Coverage examples
Printing Costs

Cost Burden for Printing and Mailing Notices of Modifications
Printing Costs

Printing Cost Per
Notice

Mailing Costs Per
Notice

Total Notices
Printed

Total Cost Burden

$0.18

$0.49

960,000

$640,000

Cost Burden for Printing and Mailing Uniform Glossaries
Printing Costs

Printing Cost Per
Glossary

Mailing Costs Per
Glossary

Total Glossaries
Requested/Printed

Total Cost Burden

$0.12

$0.49

2,400,000

$1,500,000

B. Department of Health and Human Services
2012 Cost Burden Estimate
The Department estimates there will be about 13,000,000 SBC responses
(including coverage examples) in 2012.
The Department assumes that of the total number of SBC responses, 38% would
be provided electronically in the group market, and 70% would be provided
electronically in the individual market. Accordingly, the Department estimates
that about 5,900,000 SBCs would be electronically distributed, and about
7,400,000 SBCs would be distributed in paper form. The Department assumes

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