Page 1 of 1 LRC 2023-BR297-HB56
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2023 REGULAR SESSION
MEASURE
2023 BR NUMBER 297 HOUSE BILL NUMBER 56
TITLE AN ACT relating to regional service areas for regional community services programs.
SPONSOR Representative Danny Bentley
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED: Department for Medicaid Services
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED
FISCAL ESTIMATES 2022-2023 2023-2024 ANNUAL IMPACT AT
FULL IMPLEMENTATION
REVENUES
EXPENDITURES $550,000 GF
$550,000 FF
Indeterminable
NET EFFECT ($550,000) GF
($550,000) FF
(Indeterminable)
( ) indicates a decrease/negative
PURPOSE OF MEASURE: The purpose of the measure is to establish a regional community
services program and the conditions under which a regional community services program may
provide services outside of its service area.
FISCAL EXPLANATION : Under the provisions of House Bill (HB) 56, a regional community
services program (RCSP) would be permitted to provide services outside of its service area if the
RCSP were licensed as a Behavioral Health Services Organization (BHSO). The Department for
Medicaid Services (DMS) notes that its current cost reporting system does not capture the level
of detail that would be necessary to accurately track and identify claims by service area as would
be required to implement the provisions of the legislation. DMS estimates that the costs
associated with modifying its cost reporting and information technology (IT) systems to identify
expenses for services outside a defined service area would be $1.1 million in total, with $550,000
coming from General Fund and $550,000 coming from Federal Funds. DMS did not indicate
whether there would be ongoing costs to maintain the modified cost reporting and IT systems.
DATA SOURCE(S): Cabinet for Health and Family Services/Department for Medicaid Services
PREPARER: Miriam Fordham NOTE NUMBER: 63 REVIEW: JAB DATE: 3/1/2023