LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 21, 2023 TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3550 by Rose (relating to standards for and services provided by prescribed pediatric extended care centers.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB3550, Committee Report 1st House, Substituted : a negative impact of ($1,068,993) through the biennium ending August 31, 2025. 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 Funds2024($520,019)2025($548,974)2026($563,287)2027($570,484)2028($577,774)All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGR Match For Medicaid758 Probable (Cost) fromFederal Funds555 Probable Revenue Gain fromGeneral Revenue Fund1 Probable Revenue Gain fromFoundation School Fund1932024($535,933)($828,112)$11,936$3,9782025($582,328)($868,957)$25,016$8,3382026($588,958)($877,936)$19,253$6,4182027($596,483)($889,154)$19,499$6,5002028($604,105)($900,515)$19,748$6,583 Fiscal AnalysisThe bill would require the Health and Human Services Commission (HHSC) to establish minimum standards for transportation services and establish reimbursement rates for prescribed pediatric extended care centers (PPECC) equal to the average hourly unit rate for private duty nursing (PDC).
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 21, 2023
TO: Honorable James B. Frank, Chair, House Committee on Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3550 by Rose (relating to standards for and services provided by prescribed pediatric extended care centers.), Committee Report 1st House, Substituted
TO: Honorable James B. Frank, Chair, House Committee on Human Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB3550 by Rose (relating to standards for and services provided by prescribed pediatric extended care centers.), Committee Report 1st House, Substituted
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
HB3550 by Rose (relating to standards for and services provided by prescribed pediatric extended care centers.), Committee Report 1st House, Substituted
HB3550 by Rose (relating to standards for and services provided by prescribed pediatric extended care centers.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB3550, Committee Report 1st House, Substituted : a negative impact of ($1,068,993) through the biennium ending August 31, 2025. 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 HB3550, Committee Report 1st House, Substituted : a negative impact of ($1,068,993) through the biennium ending August 31, 2025. 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:
2024 ($520,019)
2025 ($548,974)
2026 ($563,287)
2027 ($570,484)
2028 ($577,774)
All Funds, Five-Year Impact:
2024 ($535,933) ($828,112) $11,936 $3,978
2025 ($582,328) ($868,957) $25,016 $8,338
2026 ($588,958) ($877,936) $19,253 $6,418
2027 ($596,483) ($889,154) $19,499 $6,500
2028 ($604,105) ($900,515) $19,748 $6,583
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to establish minimum standards for transportation services and establish reimbursement rates for prescribed pediatric extended care centers (PPECC) equal to the average hourly unit rate for private duty nursing (PDC).
Methodology
Assuming a September 1, 2023, start date, the number of units impacted by increasing the rate for PPECCs from $266.52 per day to the average private duty nursing (PDN) rate of $439.86 per day as well as increasing the rates for services under 4 hours is estimated to be 4,427 in fiscal year 2024, increasing each subsequent fiscal year to 4,884 in fiscal year 2028. The estimated cost is $1.4 million in All Funds, including $0.5 million in General Revenue, in fiscal year 2024, increasing each subsequent fiscal year to $1.5 million in All Funds, including $0.6 million in General Revenue, in fiscal year 2028. It is assumed that costs related to adding the new Medicaid benefits, including updating policies and completing reporting requirements, can be accomplished within existing resources.The net increase in client services payments through managed care is 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 increased collections estimated to be less than $0.1 million in fiscal year 2024, less than $0.1 million in fiscal year 2025, less than $0.1 million in fiscal year 2026, less than $0.1 million in fiscal year 2027, and less than $0.1 million in fiscal year 2028. 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.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 529 Health and Human Services Commission
529 Health and Human Services Commission
LBB Staff: b > td > JMc, NPe, ER, CST, NV
JMc, NPe, ER, CST, NV