LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 4, 2025 TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB961 by Kolkhorst (Relating to fraud prevention and verifying eligibility for benefits under Medicaid.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB961, As Introduced: a negative impact of ($645,068) 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($562,455)2027($82,613)2028($82,613)2029($82,613)2030($82,613)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromGR Match For Medicaid758 Probable Savings/(Cost) fromFederal Funds5552026($37,029)($525,426)($542,744)2027($1,300)($81,313)($83,587)2028($1,300)($81,313)($83,587)2029($1,300)($81,313)($83,587)2030($1,300)($81,313)($83,587) Fiscal AnalysisThe bill would require the Health and Human Services Commission (HHSC) to conduct certain verifications on a Medicaid recipient related to lottery and gambling winnings, out-of-state electronic benefit transfer card transactions, and voter registration status, to identify possible changes to the recipient's eligibility for Medicaid benefits.The bill would take effect September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 4, 2025
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB961 by Kolkhorst (Relating to fraud prevention and verifying eligibility for benefits under Medicaid.), As Introduced
TO: Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB961 by Kolkhorst (Relating to fraud prevention and verifying eligibility for benefits under Medicaid.), 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
SB961 by Kolkhorst (Relating to fraud prevention and verifying eligibility for benefits under Medicaid.), As Introduced
SB961 by Kolkhorst (Relating to fraud prevention and verifying eligibility for benefits under Medicaid.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB961, As Introduced: a negative impact of ($645,068) 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 SB961, As Introduced: a negative impact of ($645,068) 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 ($562,455)
2027 ($82,613)
2028 ($82,613)
2029 ($82,613)
2030 ($82,613)
All Funds, Five-Year Impact:
2026 ($37,029) ($525,426) ($542,744)
2027 ($1,300) ($81,313) ($83,587)
2028 ($1,300) ($81,313) ($83,587)
2029 ($1,300) ($81,313) ($83,587)
2030 ($1,300) ($81,313) ($83,587)
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to conduct certain verifications on a Medicaid recipient related to lottery and gambling winnings, out-of-state electronic benefit transfer card transactions, and voter registration status, to identify possible changes to the recipient's eligibility for Medicaid benefits.The bill would take effect September 1, 2025.
The bill would require the Health and Human Services Commission (HHSC) to conduct certain verifications on a Medicaid recipient related to lottery and gambling winnings, out-of-state electronic benefit transfer card transactions, and voter registration status, to identify possible changes to the recipient's eligibility for Medicaid benefits.
The bill would take effect September 1, 2025.
Methodology
This analysis assumes that HHSC would require $166,200 from All Funds, including $82,613 from the General Revenue Fund, in each fiscal year to maintain a one-way interface with the Internal Revenue Service to receive information related to gambling winnings.This analysis assumes that HHSC would require $938,999 from All Funds, including $479,842 from the General Revenue Fund, in fiscal year 2026 for one-time changes to the Texas Integrated Eligibility Redesign System (TIERS) and Eligibility Supporting Technologies (EST).According to the Comptroller of Public Accounts, state Medicaid expenditures could be reduced to the extent that the provisions of the bill could reduce Medicaid caseloads; however, the amounts and timing of any such reductions are unknown, and the corresponding fiscal impact to the state cannot be determined.It is assumed that any costs for the Office of Court Administration, the Office of the Attorney General, and the Texas Lottery Commission can be absorbed using existing resources.
This analysis assumes that HHSC would require $166,200 from All Funds, including $82,613 from the General Revenue Fund, in each fiscal year to maintain a one-way interface with the Internal Revenue Service to receive information related to gambling winnings.
This analysis assumes that HHSC would require $938,999 from All Funds, including $479,842 from the General Revenue Fund, in fiscal year 2026 for one-time changes to the Texas Integrated Eligibility Redesign System (TIERS) and Eligibility Supporting Technologies (EST).
According to the Comptroller of Public Accounts, state Medicaid expenditures could be reduced to the extent that the provisions of the bill could reduce Medicaid caseloads; however, the amounts and timing of any such reductions are unknown, and the corresponding fiscal impact to the state cannot be determined.
It is assumed that any costs for the Office of Court Administration, the Office of the Attorney General, and the Texas Lottery Commission can be absorbed using existing resources.
Technology
The total technology cost is estimated to be $938,999 from All Funds, including $479,842 from the General Revenue Fund, in fiscal year 2026, primarily related to one-time changes to TIERS.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 362 Texas Lottery Commission, 529 Health and Human Services Commission
212 Office of Court Administration, Texas Judicial Council, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 362 Texas Lottery Commission, 529 Health and Human Services Commission
LBB Staff: b > td > JMc, NPe, ER, ESch, NV
JMc, NPe, ER, ESch, NV