LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION Revision 1 March 29, 2011 TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1983 by Kolkhorst (Relating to certain labor inductions performed on recipients under the Medicaid program.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1983, As Introduced: a positive impact of $373,544 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
Revision 1
March 29, 2011
Revision 1
Revision 1
TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1983 by Kolkhorst (Relating to certain labor inductions performed on recipients under the Medicaid program.), As Introduced
TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB1983 by Kolkhorst (Relating to certain labor inductions performed on recipients under the Medicaid program.), 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
HB1983 by Kolkhorst (Relating to certain labor inductions performed on recipients under the Medicaid program.), As Introduced
HB1983 by Kolkhorst (Relating to certain labor inductions performed on recipients under the Medicaid program.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1983, As Introduced: a positive impact of $373,544 through the biennium ending August 31, 2013. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1983, As Introduced: a positive impact of $373,544 through the biennium ending August 31, 2013.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2012 $146,433 2013 $227,111 2014 $227,484 2015 $227,484 2016 $227,484
2012 $146,433
2013 $227,111
2014 $227,484
2015 $227,484
2016 $227,484
All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 Probable (Cost) fromFederal Funds555 Probable Savings fromGeneral Revenue Fund1 Probable Savings fromFederal Funds555 2012 ($75,500) ($104,000) $221,933 $311,817 2013 $0 $0 $227,111 $306,639 2014 $0 $0 $227,484 $306,266 2015 $0 $0 $227,484 $306,266 2016 $0 $0 $227,484 $306,266
Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 Probable (Cost) fromFederal Funds555 Probable Savings fromGeneral Revenue Fund1 Probable Savings fromFederal Funds555 2012 ($75,500) ($104,000) $221,933 $311,817 2013 $0 $0 $227,111 $306,639 2014 $0 $0 $227,484 $306,266 2015 $0 $0 $227,484 $306,266 2016 $0 $0 $227,484 $306,266
2012 ($75,500) ($104,000) $221,933 $311,817
2013 $0 $0 $227,111 $306,639
2014 $0 $0 $227,484 $306,266
2015 $0 $0 $227,484 $306,266
2016 $0 $0 $227,484 $306,266
Fiscal Analysis
SECTION 1 of the bill would prohibit the Health and Human Services Commission (HHSC) from reimbursing providers under the Medicaid program for non-medically indicated labor induction performed at a hospital prior to the 39th week of gestation. SECTION 2 of the bill would require HHSC to conduct a study to assess the effects of the reimbursement prohibition; a written report would be required to be submitted to certain legislative committees no later than December 1, 2012.
SECTION 1 of the bill would prohibit the Health and Human Services Commission (HHSC) from reimbursing providers under the Medicaid program for non-medically indicated labor induction performed at a hospital prior to the 39th week of gestation.
SECTION 2 of the bill would require HHSC to conduct a study to assess the effects of the reimbursement prohibition; a written report would be required to be submitted to certain legislative committees no later than December 1, 2012.
Methodology
The net savings of the bill is estimated to be $0.4 million in All Funds, including $0.1 million in General Revenue Funds, in fiscal year 2012; savings in fiscal year 2013 and subsequent years is estimated to be $0.5 million in All Funds, including $0.2 million in General Revenue Funds. SECTION 1 of the bill would require changes to the Medicaid claims payment system estimated to cost $57,000 in All Funds, including $14,250 in General Revenue Funds, in fiscal year 2012. Prohibiting reimbursement for elective induction prior to 39 weeks gestation is assumed to delay earlier births and reduce birth complications and utilization of neonatal intensive care units. Savings are estimated to be $0.5 million in All Funds, including $0.2 million in General Revenue Funds, in fiscal year 2012 and subsequent years. The study required by SECTION 2 of the bill is estimated to cost $122,500 in All Funds, including $75,500 in General Revenue Funds, in fiscal year 2012.
The net savings of the bill is estimated to be $0.4 million in All Funds, including $0.1 million in General Revenue Funds, in fiscal year 2012; savings in fiscal year 2013 and subsequent years is estimated to be $0.5 million in All Funds, including $0.2 million in General Revenue Funds.
SECTION 1 of the bill would require changes to the Medicaid claims payment system estimated to cost $57,000 in All Funds, including $14,250 in General Revenue Funds, in fiscal year 2012. Prohibiting reimbursement for elective induction prior to 39 weeks gestation is assumed to delay earlier births and reduce birth complications and utilization of neonatal intensive care units. Savings are estimated to be $0.5 million in All Funds, including $0.2 million in General Revenue Funds, in fiscal year 2012 and subsequent years.
The study required by SECTION 2 of the bill is estimated to cost $122,500 in All Funds, including $75,500 in General Revenue Funds, in fiscal year 2012.
Technology
One-time costs for modifications to the Medicaid claims payment system are estimated to be $57,000 in All Funds in fiscal year 2012.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 529 Health and Human Services Commission
529 Health and Human Services Commission
LBB Staff: JOB, CL, MB, LR, SD, NB
JOB, CL, MB, LR, SD, NB