LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 23, 1995



 TO:     Honorable Hugo Berlanga, Chair         IN RE:  House Bill No. 997,
          Committee on Public Health                           as amended
         House of Representatives                       By: Cuellar, Henry
         Austin, Texas








FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
997 (relating to health insurance coverage for children who are
ineligible for Medicaid) 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.

The bill would require the Texas Department of Health to develop
a pilot program to provide primary care insurance coverage to
children under 13 who are not eligible for Medicaid and authorize
the State Medicaid program to develop a waiver for a pilot
program for children whose parents do not have access to private 
health insurance.  The bill would suggest, but not require, that
the Department of Health provide the program through the public
schools.

The costs associated with this bill, detailed below, would be for
professional services in association with the development and
design, as well as marketing of the pilot program.  It is assumed
that services would be delivered through a private or non-profit
insurance package purchased by the children's families.

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      Change in   
             Year      of  General      Number of State
                     Revenue Fund 001   Employees from 
                                            FY 1995    
                                                       
          1996                $100,000               .0
          1997                 200,000               .0
                                                       
          1998                 200,000               .0
                                                       
          1999                 200,000               .0
          2000                 200,000               .0
                                                       
                                                       
                                                       
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No significant fiscal implication to units of local government is
anticipated.


Source:   Department of Health
          LBB Staff: JK, AZ, KF, DF