LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION March 18, 2017 TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1524 by Muñoz, Jr. (Relating to transparency in the rate-setting processes for the Medicaid managed care and child health plan programs.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Government Code to require that the Health and Human ServicesCommission (HHSC) ensure transparency of managed care rate setting in Medicaid managedcare programs and the Children's Health Insurance Program (CHIP) by providing additionalinformation in actuarial reports. The bill specifies that the reports should identify and describemethodologies, data sources, assumptions, multipliers, and factors. The methodologies shoulddescribe how the executive commissioner set the rates as well as how the executive commissionerdetermined that the rates are actuarially sound. In addition, the bill would require that the reportsbe published in a format that allows the reader to trace data and formulas throughout. HHSCindicates that increased actuarial costs would be absorbed within existing resources.The bill would take effect September 1, 2017. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies:529 Health and Human Services Commission LBB Staff: UP, KCA, JJ, KMc, LR LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION March 18, 2017 TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB1524 by Muñoz, Jr. (Relating to transparency in the rate-setting processes for the Medicaid managed care and child health plan programs.), As Introduced TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB1524 by Muñoz, Jr. (Relating to transparency in the rate-setting processes for the Medicaid managed care and child health plan programs.), As Introduced 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 HB1524 by Muñoz, Jr. (Relating to transparency in the rate-setting processes for the Medicaid managed care and child health plan programs.), As Introduced HB1524 by Muñoz, Jr. (Relating to transparency in the rate-setting processes for the Medicaid managed care and child health plan programs.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Government Code to require that the Health and Human ServicesCommission (HHSC) ensure transparency of managed care rate setting in Medicaid managedcare programs and the Children's Health Insurance Program (CHIP) by providing additionalinformation in actuarial reports. The bill specifies that the reports should identify and describemethodologies, data sources, assumptions, multipliers, and factors. The methodologies shoulddescribe how the executive commissioner set the rates as well as how the executive commissionerdetermined that the rates are actuarially sound. In addition, the bill would require that the reportsbe published in a format that allows the reader to trace data and formulas throughout. HHSCindicates that increased actuarial costs would be absorbed within existing resources.The bill would take effect September 1, 2017. 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: UP, KCA, JJ, KMc, LR UP, KCA, JJ, KMc, LR