LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 18, 2021 TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3145 by Deshotel (Relating to Medicaid reimbursement for dental services provided to certain adults with disabilities.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB3145, As Introduced : a negative impact of ($28,589,477) through the biennium ending August 31, 2023. 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$02023($28,589,477)2024($28,086,343)2025($30,199,643)2026($32,357,390)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGR Match For Medicaid758 Probable Savings/(Cost) fromFederal Funds555 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromFoundation School Fund1932022$0$0$0$02023($29,469,927)($45,997,236)$660,338$220,1122024($30,354,932)($47,239,476)$1,701,442$567,1472025($31,631,170)($49,019,441)$1,073,645$357,8822026($33,338,597)($50,764,826)$735,905$245,302 Fiscal AnalysisThe bill would require the Health and Human Services Commission (HHSC) to provide Medicaid reimbursement for preventive dental services for an adult recipient with a disability who is enrolled in the STAR+PLUS managed care program.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
April 18, 2021
TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3145 by Deshotel (Relating to Medicaid reimbursement for dental services provided to certain adults with disabilities.), As Introduced
TO: Honorable James B. Frank, Chair, House Committee on Human Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3145 by Deshotel (Relating to Medicaid reimbursement for dental services provided to certain adults with disabilities.), As Introduced
Honorable James B. Frank, Chair, House Committee on Human Services
Honorable James B. Frank, Chair, House Committee on Human Services
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB3145 by Deshotel (Relating to Medicaid reimbursement for dental services provided to certain adults with disabilities.), As Introduced
HB3145 by Deshotel (Relating to Medicaid reimbursement for dental services provided to certain adults with disabilities.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB3145, As Introduced : a negative impact of ($28,589,477) through the biennium ending August 31, 2023. 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 HB3145, As Introduced : a negative impact of ($28,589,477) through the biennium ending August 31, 2023. 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 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 $0
2023 ($28,589,477)
2024 ($28,086,343)
2025 ($30,199,643)
2026 ($32,357,390)
All Funds, Five-Year Impact:
2022 $0 $0 $0 $0
2023 ($29,469,927) ($45,997,236) $660,338 $220,112
2024 ($30,354,932) ($47,239,476) $1,701,442 $567,147
2025 ($31,631,170) ($49,019,441) $1,073,645 $357,882
2026 ($33,338,597) ($50,764,826) $735,905 $245,302
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to provide Medicaid reimbursement for preventive dental services for an adult recipient with a disability who is enrolled in the STAR+PLUS managed care program.
Methodology
The total Medicaid client services cost is estimated to be $81.7 million in All Funds, including $31.9 million in General Revenue Funds, in fiscal year 2023, increasing to $91.6 million in All Funds, including $36.3 million in General Revenue Funds, in fiscal year 2026, assuming implementation beginning September 1, 2022. The total Medicaid client services savings due to reduced dental-related emergency room visits is estimated to be $6.2 million in All Funds, including $2.4 in General Revenue Funds, in fiscal year 2023, increasing to $7.5 million in All Funds, including $3.0 million in General Revenue Funds, in fiscal year 2026.The increases in client services payments through managed care are assumed to result in an increase to insurance premium tax revenue, estimated as 1.75 percent of the increased managed care expenditures. Revenue is adjusted for assumed timing of payments and prepayments resulting in assumed increased collections of $0.9 million in fiscal year 2023, $2.3 million in fiscal year 2024, $1.4 million in fiscal year 2025, and $1.0 million in fiscal year 2026. Pursuant to Section 227.001(b), Insurance Code, 25 percent of the revenue is assumed to be deposited to the credit of the Foundation School Fund.
The total Medicaid client services cost is estimated to be $81.7 million in All Funds, including $31.9 million in General Revenue Funds, in fiscal year 2023, increasing to $91.6 million in All Funds, including $36.3 million in General Revenue Funds, in fiscal year 2026, assuming implementation beginning September 1, 2022.
The total Medicaid client services savings due to reduced dental-related emergency room visits is estimated to be $6.2 million in All Funds, including $2.4 in General Revenue Funds, in fiscal year 2023, increasing to $7.5 million in All Funds, including $3.0 million in General Revenue Funds, in fiscal year 2026.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 529 Hlth & Human Svcs Comm
529 Hlth & Human Svcs Comm
LBB Staff: b > td > JMc, AKI, JLI, RD, WP, KT
JMc, AKI, JLI, RD, WP, KT