OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sHB-6446 AN ACT CONCERNING THE GOVERNOR'S BUDGET RECOMMENDATIONS FOR HUMAN SERVICES. Primary Analyst: ES 4/5/21 Contributing Analyst(s): LD OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 22 $ FY 23 $ Social Services, Dept. GF - Savings $2 million $12.2 million Note: GF=General Fund Municipal Impact: None Explanation The bill is anticipated to result in state Medicaid savings of approximately $2 million in FY 22 and $12.2 million in FY 23 to the Department of Social Services as follows: (1) approximately $2 million in FY 22 and $1 million in FY 23 associated with additional reimbursement for services paid by third party insurers due to the implementation of prompt payment standards, and (2) approximately $11.2 million in FY 23 due to limiting rate increases for nursing homes. The bill also requires the implementation of acuity-based rates for nursing homes, which is not anticipated to result in a fiscal impact to the state as the transition to acuity-based reimbursement must be cost neutral. The bill makes other technical and conforming changes that have no fiscal impact. The Out Years The annualized ongoing fiscal impact identified above would 2021HB-06446-R000263-FN.DOCX Page 2 of 2 continue into the future subject to inflation.