LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 26, 2025 TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB3001 by Kolkhorst (Relating to requiring contracts with Medicaid managed care organizations to permit the organizations to offer nutrition counseling and instruction services in lieu of other state Medicaid plan services.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB3001, As Introduced: a negative impact of ($869,600) through the biennium ending August 31, 2027. 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 Funds2026($811,850)2027($57,750)2028($57,750)2029($57,750)2030($57,750)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGR Match For Medicaid758 Probable Savings/(Cost) fromFederal Funds5552026($811,850)($811,850)2027($57,750)($57,750)2028($57,750)($57,750)2029($57,750)($57,750)2030($57,750)($57,750) Fiscal AnalysisThe bill would require the Health and Human Services Commission (HHSC) to permit Medicaid managed care organizations to offer nutrition counseling and instruction services in lieu of services specified in the state Medicaid plan.The bill would take effect September 1, 2025. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 26, 2025 TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB3001 by Kolkhorst (Relating to requiring contracts with Medicaid managed care organizations to permit the organizations to offer nutrition counseling and instruction services in lieu of other state Medicaid plan services.), As Introduced TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB3001 by Kolkhorst (Relating to requiring contracts with Medicaid managed care organizations to permit the organizations to offer nutrition counseling and instruction services in lieu of other state Medicaid plan services.), As Introduced Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board SB3001 by Kolkhorst (Relating to requiring contracts with Medicaid managed care organizations to permit the organizations to offer nutrition counseling and instruction services in lieu of other state Medicaid plan services.), As Introduced SB3001 by Kolkhorst (Relating to requiring contracts with Medicaid managed care organizations to permit the organizations to offer nutrition counseling and instruction services in lieu of other state Medicaid plan services.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB3001, As Introduced: a negative impact of ($869,600) through the biennium ending August 31, 2027. 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 SB3001, As Introduced: a negative impact of ($869,600) through the biennium ending August 31, 2027. 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: 2026 ($811,850) 2027 ($57,750) 2028 ($57,750) 2029 ($57,750) 2030 ($57,750) All Funds, Five-Year Impact: 2026 ($811,850) ($811,850) 2027 ($57,750) ($57,750) 2028 ($57,750) ($57,750) 2029 ($57,750) ($57,750) 2030 ($57,750) ($57,750) Fiscal Analysis The bill would require the Health and Human Services Commission (HHSC) to permit Medicaid managed care organizations to offer nutrition counseling and instruction services in lieu of services specified in the state Medicaid plan.The bill would take effect September 1, 2025. The bill would require the Health and Human Services Commission (HHSC) to permit Medicaid managed care organizations to offer nutrition counseling and instruction services in lieu of services specified in the state Medicaid plan. The bill would take effect September 1, 2025. Methodology This analysis assumes that HHSC would require $1,623,700 from All Funds in fiscal year 2026 for development costs associated with establishing a new provider type and $115,500 from All Funds in subsequent fiscal years for ongoing system updates. Technology The total technology cost is estimated to be $1,623,700 from All Funds in fiscal year 2026 and $115,500 from All Funds in fiscal year 2027. Local Government Impact No significant 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, ESch, NV JMc, NPe, ER, ESch, NV