LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 85TH LEGISLATIVE REGULAR SESSION May 2, 2017 TO: Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1174 by Hinojosa (Relating to the provision of prosthetic devices for certain recipients under Medicaid.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1174, As Introduced: a negative impact of ($5,788,148) 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
May 2, 2017
TO: Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1174 by Hinojosa (Relating to the provision of prosthetic devices for certain recipients under Medicaid.), As Introduced
TO: Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1174 by Hinojosa (Relating to the provision of prosthetic devices for certain recipients under Medicaid.), As Introduced
Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1174 by Hinojosa (Relating to the provision of prosthetic devices for certain recipients under Medicaid.), As Introduced
SB1174 by Hinojosa (Relating to the provision of prosthetic devices for certain recipients under Medicaid.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1174, As Introduced: a negative impact of ($5,788,148) 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 SB1174, As Introduced: a negative impact of ($5,788,148) 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 ($2,949,321) 2019 ($2,838,827) 2020 ($2,885,260) 2021 ($2,926,161) 2022 ($2,975,242)
2018 ($2,949,321)
2019 ($2,838,827)
2020 ($2,885,260)
2021 ($2,926,161)
2022 ($2,975,242)
All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGR Match For Medicaid758 Probable (Cost) fromFederal Funds555 2018 ($2,949,321) ($3,839,435) 2019 ($2,838,827) ($3,810,896) 2020 ($2,885,260) ($3,879,624) 2021 ($2,926,161) ($3,934,690) 2022 ($2,975,242) ($4,000,769)
Fiscal Year Probable (Cost) fromGR Match For Medicaid758 Probable (Cost) fromFederal Funds555 2018 ($2,949,321) ($3,839,435) 2019 ($2,838,827) ($3,810,896) 2020 ($2,885,260) ($3,879,624) 2021 ($2,926,161) ($3,934,690) 2022 ($2,975,242) ($4,000,769)
2018 ($2,949,321) ($3,839,435)
2019 ($2,838,827) ($3,810,896)
2020 ($2,885,260) ($3,879,624)
2021 ($2,926,161) ($3,934,690)
2022 ($2,975,242) ($4,000,769)
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to provide coverage for prosthetic devices for certain Medicaid recipients, regardless of their age.
Methodology
HHSC assumes 70.0 percent of Medicaid recipients diagnosed with non-excluded limb or appendage amputation will receive the prosthetic benefit. Based on this assumption, HHSC estimates the monthly caseload for recipients receiving the benefit in Medicaid to be 340 in fiscal year 2018 and 345 in fiscal year 2019 with increases in each subsequent year, reaching 362 by fiscal year 2022. HHSC estimates an average monthly cost per recipient receiving these services to be $1,599.45 for fiscal years 2018 through 2022. The estimated increased cost to client services would be $6.5 million in All Funds, including $2.8 million in General Revenue, in fiscal year 2018 and $6.6 million in All Funds, including $2.8 million in General Revenue, in fiscal year 2019. The estimated client services cost would continue increasing in subsequent fiscal years, reaching $6.9 million in All Funds, including $3.0 million in General Revenue, by fiscal year 2022. According to HHSC, there would be a one-time cost in fiscal year 2018 of $263,000 in All Funds, including $131,500 in General Revenue Funds, as well as ongoing costs in fiscal years 2019 through 2022 of $28,000 in All Funds, including $14,000 in General Revenue Funds, for modifications to the Medicaid Management Information System (MMIS).
Technology
According to HHSC, there would be a one-time cost in fiscal year 2018 of $263,000 in All Funds, including $131,500 in General Revenue Funds, as well as ongoing costs in fiscal years 2019 through 2022 of $28,000 in All Funds, including $14,000 in General Revenue Funds, for modifications to the Medicaid Management Information System (MMIS).
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, LR, RGU, TBo
UP, KCA, LR, RGU, TBo