OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sSB-10 AN ACT PROMOTING ACCESS TO AFFORDABLE PRESCRIPTION DRUGS, HEALTH CARE COVERAGE, TRANSPARENCY IN HEALTH CARE COSTS, HOME AND COMMUNITY -BASED SUPPORT FOR VULNERABLE PERSONS AND RIGHTS REGARDING GENDER IDENTITY AND EXPRESSION. Primary Analyst: LD 5/8/23 Contributing Analyst(s): SB, RDP, ME, LG, NN, MP, BP, MR, ES, CW OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 24 $ FY 25 $ FY 26 $ State Comptroller - Fringe Benefits GF - Potential Savings None None See Below Attorney General GF - Revenue Gain None None See Below Social Services, Dept. GF - Cost See Below See Below See Below Department of Revenue Services GF - Cost Up to 75,000 None None Public Health, Dept. GF - Cost 30,000 None None Judicial Dept. PCAF - Revenue Loss 600,000 600,000 600,000 Note: GF=General Fund; PCAF=Probate Court Administration Fund Municipal Impact: Municipalities Effect FY 24 $ FY 25 $ FY 26 $ Various Municipalities Savings None None See Below Explanation Sections 2-4 may result in savings to the state and retiree health 2023SB-00010-R000735-FN.docx Page 2 of 3 plans, as well as fully insured municipal plans through prescription drug price limitations established in the bill. Any savings to the plans will be used to reduce prescription drug costs to the insureds. Savings will begin in 2026 and accumulating in the outyears as the U.S. Health and Human Services (HHS) secretary negotiates the maximum fair price for prescription drugs. Section 4 also provides the Office of the Attorney General (OAG) with exclusive authority to enforce violations of the provisions contained within Sections 3 and 4 of the bill, which could result in a General Fund revenue gain beginning in FY 26 to the extent enforcement results in fines issued. The bill requires that manufacturers or distributors would be subject to a civil penalty of (1) $500,000, or (2) the purchaser's amount of annual savings generated from the maximum fair price limits in Section 3. Section 10 mandates at least two licensed clinical social worker visits for each individual enrolled in home and community-based services waivers administered by the Department of Social Services. This results in significant costs to DSS and would be based on the number of clients receiving services, the rate paid, and the extent to which individuals are receiving services regardless of need. Section 11 results in a cost to the Department of Social Services associated with designing and implementing a program to provide Medicaid reimbursement to certified community health workers. The extent of cost to the state depends on the Medicaid rate to be established and the utilization of services provided by community health workers. Section 13 results in a cost to the Department of Social Services of $16.5 million in FY 24 and $43.3 million in FY 25 to increase the income limit for the CoveredCT program to 200% of the Federal Poverty Level. Section 14 results in additional program costs to the Department of Social Services to the extent the plan to expand income eligibility up to 300% FPL is approved and implemented. 2023SB-00010-R000735-FN.docx Page 3 of 3 Section 15, which requires personal income tax forms and instructions to be revised for certain specified purposes, results in a one- time cost of up to $75,000 to the Department of Revenue Services in FY 24 associated with programming updates to the CTax tax administration system and myconneCT online portal, as well as form modification. Section 15 may also result in minimal costs to the exchange (i.e., Access Health CT), to its own resources as a quasi-public agency, associated with using tax return data for targeted outreach and marketing. The exchange already conducts marketing using its own funds. Any additional costs resulting from the MOU would be incurred only after a revised tax return form is in use. Section 16, which requires the Department of Public Health (DPH) and municipal registrars of vital statistics to issue an amended birth certificate to reflect a parent’s legally changed name upon the receipt of certain documents, is anticipated to result in an Information Technology consultant cost of approximately $30,000 in FY 24 only to update DPH's Electronic Birth Registry to allow for these names changes. There is no fee associated with the issuance of amended birth certificates and, therefore, no anticipated revenue gain to the state or municipalities. Section 21 removes the $250 filing fee that the Probate Court collects for name change petitions resulting in an estimated $600,000 annual loss in revenue to the Probate Court Administration Fund (PCAF). The bill also makes technical, clarifying, and procedural changes that result in no fiscal impact. The Out Years The annualized ongoing fiscal impact identified above would continue into the future: 1) subject to prescription drug prices negotiated by the U.S. Health and Human Services (HHS) secretary; 2) based upon the number of name change petitions; 3) to the extent to which enforcement by OAG results in the recoupment of fines; and 4) subject to inflationary measures.