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:HB1622 by Thompson, Senfronia (Relating to the personal needs allowance for certain Medicaid recipients who are residents of long-term care facilities.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1622, As Introduced: a negative impact of ($12,844,072) through the biennium ending August 31, 2019. 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, 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:HB1622 by Thompson, Senfronia (Relating to the personal needs allowance for certain Medicaid recipients who are residents of long-term care facilities.), As Introduced
TO: Honorable Richard Peña Raymond, Chair, House Committee on Human Services
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB1622 by Thompson, Senfronia (Relating to the personal needs allowance for certain Medicaid recipients who are residents of long-term care facilities.), 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
HB1622 by Thompson, Senfronia (Relating to the personal needs allowance for certain Medicaid recipients who are residents of long-term care facilities.), As Introduced
HB1622 by Thompson, Senfronia (Relating to the personal needs allowance for certain Medicaid recipients who are residents of long-term care facilities.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1622, As Introduced: a negative impact of ($12,844,072) through the biennium ending August 31, 2019. 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 HB1622, As Introduced: a negative impact of ($12,844,072) through the biennium ending August 31, 2019.
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 2018 ($6,427,585) 2019 ($6,416,487) 2020 ($6,455,458) 2021 ($6,499,646) 2022 ($6,544,602)
2018 ($6,427,585)
2019 ($6,416,487)
2020 ($6,455,458)
2021 ($6,499,646)
2022 ($6,544,602)
All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 Probable (Cost) fromGR Match For Medicaid758 Probable (Cost) fromFederal Funds555 2018 ($1,938,420) ($4,489,165) ($5,907,635) 2019 ($1,938,420) ($4,478,067) ($6,018,633) 2020 ($1,938,420) ($4,517,038) ($6,081,362) 2021 ($1,938,420) ($4,561,226) ($6,140,854) 2022 ($1,938,420) ($4,606,182) ($6,201,378)
Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 Probable (Cost) fromGR Match For Medicaid758 Probable (Cost) fromFederal Funds555 2018 ($1,938,420) ($4,489,165) ($5,907,635) 2019 ($1,938,420) ($4,478,067) ($6,018,633) 2020 ($1,938,420) ($4,517,038) ($6,081,362) 2021 ($1,938,420) ($4,561,226) ($6,140,854) 2022 ($1,938,420) ($4,606,182) ($6,201,378)
2018 ($1,938,420) ($4,489,165) ($5,907,635)
2019 ($1,938,420) ($4,478,067) ($6,018,633)
2020 ($1,938,420) ($4,517,038) ($6,081,362)
2021 ($1,938,420) ($4,561,226) ($6,140,854)
2022 ($1,938,420) ($4,606,182) ($6,201,378)
Fiscal Analysis
The bill would increase the personal needs allowance for Medicaid-enrolled residents of nursing facilities and Intermediate Care Facilities for Individuals with Intellectual Disabilities (ICFs/IID) from a minimum of $60 per month to a minimum of $75 per month.
Methodology
A projected 68,529 average monthly Medicaid recipients will reside in nursing facilities or ICFs/IID (including State Supported Living Centers, SSLCs) in fiscal year 2018, increasing each fiscal year to 70,811 by fiscal year 2022. It is assumed that the personal needs allowance for each of these recipients would be increased by $15 per month, from the current payment of $60 per month to the new minimum of $75 per month; there would be an additional cost to increase the monthly payment above the revised minimum.An estimated 10,769 recipients in fiscal year 2018 and beyond have incomes of less than $60 per month; the $15 monthly increase for these recipients would be funded entirely with General Revenue Funds, an estimated cost of $1.9 million in each fiscal year. The monthly increase for the remaining recipients would be a reduction to applied income, increasing the average monthly cost of care for these recipients. The increased costs would be matched with Federal Funds based on the Federal Medical Assistance Percentage (FMAP) at an estimated cost of $10.4 million in All Funds, including $4.5 million in General Revenue Match for Medicaid Funds in fiscal year 2018, increasing each fiscal year to $10.8 million in All Funds, including $4.6 million in General Revenue Match for Medicaid Funds by fiscal year 2022.
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, KCA, LR, RGU
UP, KCA, LR, RGU