COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:5616H.02C Bill No.:HCS for HB 2727 Subject:Public Assistance; Department of Social Services Type:Original Date:April 27, 2022Bill Summary:This proposal modifies provisions for public assistance benefits. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on General Revenue $0$0$0 ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 5616H.02C Bill No. HCS for HB 2727 Page 2 of April 27, 2022 KP:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net Effect on FTE 000 ☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government$0$0$0 L.R. No. 5616H.02C Bill No. HCS for HB 2727 Page 3 of April 27, 2022 KP:LR:OD FISCAL ANALYSIS ASSUMPTION §208.030 - Home care in licensed residential care facilities shall be subject to appropriation Officials from the Department of Social Services (DSS) assume appropriations will be sufficient to cover the Supplemental Nursing Care (SNC), Residential Care Facility (RCF) and Assisted Living Facility (ALF) at a minimum of the 1983 levels, which is currently included in the Medicaid state plan. Therefore, DSS assumes no impact. The 1983 rates are as follows: SNC: $300 (current maximum monthly grant amount is $390) RCF I: $120 (current maximum monthly grant amount is $156) RCF II/ALF: $225 (current maximum monthly grant amount is $292) Oversight notes the DSS Supplemental Nursing Care (SNC) Manual Supplemental Nursing Care (SNC) program is to provide individuals who meet certain requirements with reasonable subsistence compatible with decency and health in accordance with the standards developed by the Family Support Division (FSD). Cash benefits are granted to certain eligible adults residing in licensed skilled, intermediate care, residential care, or assisted living facilities.” In discussions with DSS, Oversight learned the 1983 levels of assistance are part of the total state plan agreement with the Centers for Medicare and Medicaid Service (CMS). Although the current monthly SNC rate is $156, the 1983 rate is $120. Should appropriations be insufficient to support 1983 levels, there could be an unknown negative fiscal impact to federal funds. However, although this legislation removes the 1983 language for total state payment for home care in licensed residential care facilities, Oversight assumes appropriations will continue to be sufficient to support the 1983 levels of assistance; therefore, Oversight assumes a zero impact in the fiscal note for this agency. Officials from the Office of Administration - Budget & Planning (B&P) state this bill has no direct impact on B&P or on general and total state revenues. The B&P states it will not impact the calculation pursuant to Article X, Section 18(e). Officials from the Department of Health and Senior Services, the Department of Mental Health and the Hermann Area Hospital District each assume the proposal will have no fiscal impact on their respective organizations. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note for these agencies. L.R. No. 5616H.02C Bill No. HCS for HB 2727 Page 4 of April 27, 2022 KP:LR:OD Oversight only reflects the responses received from state agencies and political subdivisions; however, other nursing homes and hospitals were requested to respond to this proposed legislation but did not. A listing of political subdivisions included in the Missouri Legislative Information System database is available upon request. FISCAL IMPACT – State Government FY 2023 (10 Mo.) FY 2024FY 2025$0$0$0FISCAL IMPACT – Local Government FY 2023 (10 Mo.) FY 2024FY 2025$0$0$0 FISCAL IMPACT – Small Business No direct fiscal impact to small businesses would be expected as a result of this proposal. FISCAL DESCRIPTION Currently, the amount of total state payments for home care in licensed residential care facilities cannot exceed $156 a month. This bill takes out the dollar limit and the language regarding 1983 total payment levels, and subjects payments to appropriation” (§208.030). This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. L.R. No. 5616H.02C Bill No. HCS for HB 2727 Page 5 of April 27, 2022 KP:LR:OD SOURCES OF INFORMATION Department of Health and Senior Services Department of Mental Health Department of Social Services Office of Administration - Budget and Planning Hermann Area Hospital District Julie MorffRoss StropeDirectorAssistant DirectorApril 27, 2022April 27, 2022