PREPARED BY: Mikayla Findlay LB 41 DATE PREPARED: February 24, 2025 PHONE: 402-471-0062 Revision: 01 Revised to reflect provisions included in AM 62 FISCAL NOTE LEGISLATIVE FISCAL ANALYST ESTIMATE ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates) FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS $78,575 $80,515 CASH FUNDS FEDERAL FUNDS $105, 025 $103,085 OTHER FUNDS TOTAL FUNDS $183,600 $183,600 Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate. This bill would require an additional two pregnancy-related screenings for syphilis, during the third trimester and at birth, in addition to the existing screening requirement during the first gestational examination. AM 62 adds provisions that specify that provider s shall inform recipients that such testing is voluntary may be declined verbally or in writing. The implementation date would be three months following adjournment and for the purposes of this fiscal note is assumed to be July 1, 2025. These additional screening requirements would affect Medicaid coverage for pregnancies. The agency fiscal impact is based on an estimate of cost per test of $12. The Department of Health and Human Services (DHHS) notes that in FY24 there were 8,912 births under the Medicaid program. Currently, individuals who are deter mined to be high risk already qualify for additional syphilis testing. Data on how many pregnant Medicaid clients in Nebraska are currently receiving additional testing is not available . The agency estimated cost of $216,000 is based on $24 for two tests for 9,000 individuals. This fiscal note assumes a total of 1 5% of current Medicaid pregnancies already qualify for additional testing due to risk. As such, the assumed population is 7,650 and at $24 for two additional tests the cost is $186,600. The fund mix based on a proportional blend of CHIP, regular Medicaid, and Medicaid expansion federal participation. The state share is higher in FY27 due to expected reduction in Federal Medical Assistance Percentage (FMAP). ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: RE VIEW OF AGENCY & POLT. SUB. RESPONSE LB: 41 AM: 62 AGENCY/POLT. SUB: Nebraska Dept of Health & Human Services REVIEWED BY: Ann Linneman DATE: 2 -24-2025 PHONE: (402) 471-4180 COMMENTS: Concur with the Nebraska Department of Health & Human Services assessment of fiscal impact. LB (1) 41 AM62 FISCAL NOTE 2025 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION State Agency or Political Subdivision Name:(2) Department of Health and Human Services Prepared by: (3) John Meals Date Prepared 2-21-25 Phone: (5) 471-6719 FY 2025-2026 FY 2026-2027 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS $92,441 $94,724 CASH FUNDS FEDERAL FUNDS $123,559 $121,276 OTHER FUNDS TOTAL FUNDS $216,000 $0 $216,000 $0 Return by date specified or 72 hours prior to public hearing, whichever is earlier. Explanation of Estimate: LB41 AM62 adds language requiring a blood sample be taken from a pregnant woman at the third trimester examination and at birth to be submitted for serological testing for syphilis . Currently, this testing is required at the time of the first examination. This bill includes language that allows each pregnant woman to opt out of the blood testing. In SFY24, there were 8,912 Medicaid covered births. It is estimated that LB41 will result in an increase of 18,000 tests annually as a result of three tests being required instead of one. This fiscal note uses an estimated average rapid plasma regain test of $12. With an implementation date of July 1, 2025, this will result in an increase in aid expenditures of $216,000 ($123,559 Federal Funds and $92,441 General Funds) in SFY26. In SFY27, the increase in aid expenditures will be $216,000 ($121,276 Federal Funds and $94,724 General Funds). The blended FMAP for SFY26 used is 57.20% and for SFY27 is 56.15%. The blended FMAP was based on the proportion of regular Medicaid usage and Children’s Health Insurance Program (CHIP) usage. This fiscal note assumes that all Medicaid covered births are currently only receiving one test and so the cost of two additional tests is included. The department recognizes that some women may already be receiving additional tests, but the number of additional tests is indeterminable. MAJOR OBJECTS OF EXPENDITURE PERSONAL SERVICES: NUMBER OF POSITIONS 2025-2026 2026-2027 POSITION TITLE 26-26 26-27 EXPENDITURES EXPENDITURES Benefits............................................................................................................................... Operating............................................................................................................................ Travel.................................................................................................................................. Capital Outlay..................................................................................................................... Aid...................................................................................................................................... $216,000 $216,000 Capital Improvements......................................................................................................... TOTAL............................................................................................................ $216,000 $216,000