LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION March 30, 2021 TO: Honorable Stephanie Klick, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1742 by Guerra (Relating to the practice of dentistry and the provision of teledentistry dental services.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1742, As Introduced : a negative impact of ($174,226) through the biennium ending August 31, 2023. The estimate only reflects costs associated with the Texas State Board of Dental Examiners conducting the study required by the bill. The fiscal implications to Medicaid and the Children's Health Insurance Program cannot be determined at this time due to the inability to determine the impact on service utilization.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 toGeneral Revenue Related Funds2022($87,113)2023($87,113)2024$02025$02026$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20212022($87,113)1.02023($87,113)1.02024$00.02025$00.02026$00.0 Fiscal AnalysisThe bill would establish the practice of teledentistry. The bill would allow the Texas State Board of Dental Examiners (TSBDE), in consultation with the Texas Department of Insurance (TDI), to adopt rules related to the practice of teledentistry. The bill would require TSBDE and the Texas State Board of Pharmacy (TSBP) to adopt rules to determine a valid teledentistry prescription and publish frequently asked questions relating to a valid prescription on each respective agency website. The bill would require TSBDE to adopt rules governing call coverage agreements between dentists. The bill would require TSBDE to study the extent to which teledentistry dental services may be used to substantially increase access to dental care for the children of low-income families. The bill would require the Health and Human Services Commission (HHSC) to establish policies that permit reimbursement under Medicaid and the Children's Health Insurance Program (CHIP) for services provided through teledentistry dental services. The bill would require Medicaid reimbursement for teledentistry dental services to be the same rate as the Medicaid program reimburses for the same in-person dental service. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION March 30, 2021 TO: Honorable Stephanie Klick, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1742 by Guerra (Relating to the practice of dentistry and the provision of teledentistry dental services.), As Introduced TO: Honorable Stephanie Klick, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1742 by Guerra (Relating to the practice of dentistry and the provision of teledentistry dental services.), As Introduced Honorable Stephanie Klick, Chair, House Committee on Public Health Honorable Stephanie Klick, Chair, House Committee on Public Health Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB1742 by Guerra (Relating to the practice of dentistry and the provision of teledentistry dental services.), As Introduced HB1742 by Guerra (Relating to the practice of dentistry and the provision of teledentistry dental services.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1742, As Introduced : a negative impact of ($174,226) through the biennium ending August 31, 2023. The estimate only reflects costs associated with the Texas State Board of Dental Examiners conducting the study required by the bill. The fiscal implications to Medicaid and the Children's Health Insurance Program cannot be determined at this time due to the inability to determine the impact on service utilization.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 HB1742, As Introduced : a negative impact of ($174,226) through the biennium ending August 31, 2023. The estimate only reflects costs associated with the Texas State Board of Dental Examiners conducting the study required by the bill. The fiscal implications to Medicaid and the Children's Health Insurance Program cannot be determined at this time due to the inability to determine the impact on service utilization.The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. The estimate only reflects costs associated with the Texas State Board of Dental Examiners conducting the study required by the bill. The fiscal implications to Medicaid and the Children's Health Insurance Program cannot be determined at this time due to the inability to determine the impact on service utilization.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: 2022 ($87,113) 2023 ($87,113) 2024 $0 2025 $0 2026 $0 All Funds, Five-Year Impact: 2022 ($87,113) 1.0 2023 ($87,113) 1.0 2024 $0 0.0 2025 $0 0.0 2026 $0 0.0 Fiscal Analysis The bill would establish the practice of teledentistry. The bill would allow the Texas State Board of Dental Examiners (TSBDE), in consultation with the Texas Department of Insurance (TDI), to adopt rules related to the practice of teledentistry. The bill would require TSBDE and the Texas State Board of Pharmacy (TSBP) to adopt rules to determine a valid teledentistry prescription and publish frequently asked questions relating to a valid prescription on each respective agency website. The bill would require TSBDE to adopt rules governing call coverage agreements between dentists. The bill would require TSBDE to study the extent to which teledentistry dental services may be used to substantially increase access to dental care for the children of low-income families. The bill would require the Health and Human Services Commission (HHSC) to establish policies that permit reimbursement under Medicaid and the Children's Health Insurance Program (CHIP) for services provided through teledentistry dental services. The bill would require Medicaid reimbursement for teledentistry dental services to be the same rate as the Medicaid program reimburses for the same in-person dental service. The bill would establish the practice of teledentistry. The bill would allow the Texas State Board of Dental Examiners (TSBDE), in consultation with the Texas Department of Insurance (TDI), to adopt rules related to the practice of teledentistry. The bill would require TSBDE and the Texas State Board of Pharmacy (TSBP) to adopt rules to determine a valid teledentistry prescription and publish frequently asked questions relating to a valid prescription on each respective agency website. The bill would require TSBDE to adopt rules governing call coverage agreements between dentists. The bill would require TSBDE to study the extent to which teledentistry dental services may be used to substantially increase access to dental care for the children of low-income families. The bill would require the Health and Human Services Commission (HHSC) to establish policies that permit reimbursement under Medicaid and the Children's Health Insurance Program (CHIP) for services provided through teledentistry dental services. The bill would require Medicaid reimbursement for teledentistry dental services to be the same rate as the Medicaid program reimburses for the same in-person dental service. Methodology According to TSBDE, the agency would need an additional 1.0 Full-time Equivalent (FTE) during the 2022-23 biennium at a cost of $0.1 million in General Revenue in each fiscal year in order to complete the study required by the bill. It is assumed that any additional costs to TSBDE to implement the provisions of the bill could be accomplished by utilizing existing resources. It is unknown how the addition of coverage of teledentistry dental services to Medicaid and CHIP will impact service utilization. It is assumed that any costs to TDI, TSBP, the Employees Retirement System, Texas A&M University System Administration, and the University of Texas System Administration to implement the provisions of the bill could be accomplished by utilizing existing resources. It is assumed that any costs to HHSC associated with rulemaking, and development of any state plan amendments or waivers could be absorbed within existing agency resources. It is unknown how the addition of coverage of teledentistry dental services to Medicaid and CHIP will impact service utilization. It is assumed that any costs to TDI, TSBP, the Employees Retirement System, Texas A&M University System Administration, and the University of Texas System Administration to implement the provisions of the bill could be accomplished by utilizing existing resources. It is assumed that any costs to HHSC associated with rulemaking, and development of any state plan amendments or waivers could be absorbed within existing agency resources. It is unknown how the addition of coverage of teledentistry dental services to Medicaid and CHIP will impact service utilization. It is assumed that any costs to TDI, TSBP, the Employees Retirement System, Texas A&M University System Administration, and the University of Texas System Administration to implement the provisions of the bill could be accomplished by utilizing existing resources. It is assumed that any costs to HHSC associated with rulemaking, and development of any state plan amendments or waivers could be absorbed within existing agency resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: b > td > 327 Employees Retirement System, 454 Department of Insurance, 503 Texas Medical Board, 504 Board of Dental Examiners, 515 Board of Pharmacy, 529 Hlth & Human Svcs Comm, 710 Texas A&M Univ System Admin, 720 UT Sys Admin 327 Employees Retirement System, 454 Department of Insurance, 503 Texas Medical Board, 504 Board of Dental Examiners, 515 Board of Pharmacy, 529 Hlth & Human Svcs Comm, 710 Texas A&M Univ System Admin, 720 UT Sys Admin LBB Staff: b > td > JMc, AKI, JLI, RD JMc, AKI, JLI, RD