LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 22, 2013 TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2731 by Raymond (Relating to decreasing administrative burdens of Medicaid managed care for the state, the managed care organizations, and providers under managed care networks.), Committee Report 1st House, Substituted There could be significant costs related to implementing the provisions of the bill, but because needed system modifications at managed care organizations are unknown, the fiscal impact to the state cannot be determined. The bill would amend requirements related to administration of Medicaid managed care contracts to decrease administrative burdens for the state, managed care organizations (MCOs), and providers enrolled in managed care networks. According to the Health and Human Services Commission (HHSC), the cost to implement most provisions in the bill would be minimal and could be absorbed within available resources. HHSC indicates current contracts require MCOs to offer providers the option of submitting and receiving claims information through an electronic data exchange. However, contracts would need to be amended to include the requirement that the data portal accept all necessary attachments and to accept corrected or additional documentation. Certain MCOs may need to modify systems, which could impact the administrative rate HHSC pays to those plans. There could be significant costs related to implementing the provisions of the bill related to electronic submission and obtaining information electronically, but because needed system modifications at MCOs are unknown, the fiscal impact to the state cannot be determined. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:529 Health and Human Services Commission LBB Staff: UP, CL, MB, LR, VJC, NB, ES
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 22, 2013
TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB2731 by Raymond (Relating to decreasing administrative burdens of Medicaid managed care for the state, the managed care organizations, and providers under managed care networks.), Committee Report 1st House, Substituted
TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB2731 by Raymond (Relating to decreasing administrative burdens of Medicaid managed care for the state, the managed care organizations, and providers under managed care networks.), Committee Report 1st House, Substituted
Honorable Richard Peña Raymond, Chair, House Committee on Human Services
Honorable Richard Peña Raymond, Chair, House Committee on Human Services
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB2731 by Raymond (Relating to decreasing administrative burdens of Medicaid managed care for the state, the managed care organizations, and providers under managed care networks.), Committee Report 1st House, Substituted
HB2731 by Raymond (Relating to decreasing administrative burdens of Medicaid managed care for the state, the managed care organizations, and providers under managed care networks.), Committee Report 1st House, Substituted
There could be significant costs related to implementing the provisions of the bill, but because needed system modifications at managed care organizations are unknown, the fiscal impact to the state cannot be determined.
There could be significant costs related to implementing the provisions of the bill, but because needed system modifications at managed care organizations are unknown, the fiscal impact to the state cannot be determined.
The bill would amend requirements related to administration of Medicaid managed care contracts to decrease administrative burdens for the state, managed care organizations (MCOs), and providers enrolled in managed care networks. According to the Health and Human Services Commission (HHSC), the cost to implement most provisions in the bill would be minimal and could be absorbed within available resources. HHSC indicates current contracts require MCOs to offer providers the option of submitting and receiving claims information through an electronic data exchange. However, contracts would need to be amended to include the requirement that the data portal accept all necessary attachments and to accept corrected or additional documentation. Certain MCOs may need to modify systems, which could impact the administrative rate HHSC pays to those plans. There could be significant costs related to implementing the provisions of the bill related to electronic submission and obtaining information electronically, but because needed system modifications at MCOs are unknown, the fiscal impact to the state cannot be determined.
Local Government Impact
No 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: UP, CL, MB, LR, VJC, NB, ES
UP, CL, MB, LR, VJC, NB, ES