LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
March 19, 1995
TO: Honorable Harvey Hilderbran, Chair IN RE: House Bill No. 867
Committee on Human Services By: Maxey
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
867 (Relating to an automated system for providing reimbursements
to nursing homes under the state Medicaid program.) this office
has determined the following:
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
This bill would implement TPR recommendation HHS 24 found in
Gaining Ground. It requires the Department of Human Services to
acquire and develop a system for providing reimbursements to
nursing homes under the state Medicaid program. The system must
allow for the addition of other components of the state Medicaid
program administered by DHS and other state agencies, must use
data on federal MDS+ nursing home form, and have an electronic
link with nursing homes. The department is required to charge a
fee to nursing homes not processing claims through the automated
systems.
The bill also directs the Health and Human Services Commission to
work with DHS to obtain federal funding, determine deadlines for
other state agencies to use the system, and to coordinate the
allocation of costs with the other health and human service
agencies.
The department is to give development of this system priority
over any other equipment and automation upgrades. The agency is
currently reengineering and planning a claims management system
similar to this proposed legislation and is developing estimates
of cost savings and benefits as part of the project planning
process. The cost saving analysis has not been completed,
however, it is anticipated that system implementation would
result in sufficient savings to ultimately offset costs.
The system must be implemented by September 1, 1996. The bill
takes effect immediately upon passage.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Cost Out Probable Cost Out Change in
Year of General of Federal Funds Number of State
Revenue Fund 001 555 Employees from
FY 1995
1996 $2,500,000 $2,500,000 .0
1997 1,250,000 1,250,000 .0
1998 .0
1999 .0
2000 .0
No fiscal implication to units of local government is
anticipated.
Source: Department of Human Services, Health and Human Services
Commission
LBB Staff: JK, MU, DF