LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 4, 2009 TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB279 by Anchia (Relating to reimbursement for medical assistance provided by a school-based health center to certain recipients.), As Introduced No significant fiscal implication to the State is anticipated. The bill would require the Health and Human Services Commission to reimburse school-based health clinics for services provided to Medicaid recipients regardless of their having a primary care provider and without a referral from their primary care provider. It would require HHSC to seek to amend existing contracts with managed care organizations and to insert in future contracts language that would allow such reimbursement. HHSC indicates that they do not have sufficient information to estimate a cost impact. The following factors may affect costs and savings: 1) the changes may represent a shift of where services are provided, not a net increase; 2) increased access could increase costs to the Medicaid program; 3) there may be some duplication of services due to lack of referrals; 4) there may be savings from avoided emergency room care if a child gets early, preventive, lower-cost treatment; 5) there may be some impact on primary care providers if they experience a substantial decrease in patient visits. Due to the above factors, it is assumed that the bill would have roughly equivalent costs and savings. The bill would take effect on September 1, 2009. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:529 Health and Human Services Commission, 701 Central Education Agency LBB Staff: JOB, CL, MB, LR LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 4, 2009 TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB279 by Anchia (Relating to reimbursement for medical assistance provided by a school-based health center to certain recipients.), As Introduced TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: HB279 by Anchia (Relating to reimbursement for medical assistance provided by a school-based health center to certain recipients.), As Introduced Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board HB279 by Anchia (Relating to reimbursement for medical assistance provided by a school-based health center to certain recipients.), As Introduced HB279 by Anchia (Relating to reimbursement for medical assistance provided by a school-based health center to certain recipients.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would require the Health and Human Services Commission to reimburse school-based health clinics for services provided to Medicaid recipients regardless of their having a primary care provider and without a referral from their primary care provider. It would require HHSC to seek to amend existing contracts with managed care organizations and to insert in future contracts language that would allow such reimbursement. HHSC indicates that they do not have sufficient information to estimate a cost impact. The following factors may affect costs and savings: 1) the changes may represent a shift of where services are provided, not a net increase; 2) increased access could increase costs to the Medicaid program; 3) there may be some duplication of services due to lack of referrals; 4) there may be savings from avoided emergency room care if a child gets early, preventive, lower-cost treatment; 5) there may be some impact on primary care providers if they experience a substantial decrease in patient visits. Due to the above factors, it is assumed that the bill would have roughly equivalent costs and savings. The bill would take effect on September 1, 2009. The bill would require the Health and Human Services Commission to reimburse school-based health clinics for services provided to Medicaid recipients regardless of their having a primary care provider and without a referral from their primary care provider. It would require HHSC to seek to amend existing contracts with managed care organizations and to insert in future contracts language that would allow such reimbursement. HHSC indicates that they do not have sufficient information to estimate a cost impact. The following factors may affect costs and savings: 1) the changes may represent a shift of where services are provided, not a net increase; 2) increased access could increase costs to the Medicaid program; 3) there may be some duplication of services due to lack of referrals; 4) there may be savings from avoided emergency room care if a child gets early, preventive, lower-cost treatment; 5) there may be some impact on primary care providers if they experience a substantial decrease in patient visits. Due to the above factors, it is assumed that the bill would have roughly equivalent costs and savings. The bill would take effect on September 1, 2009. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 529 Health and Human Services Commission, 701 Central Education Agency 529 Health and Human Services Commission, 701 Central Education Agency LBB Staff: JOB, CL, MB, LR JOB, CL, MB, LR