LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
February 21, 1995
TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 602
Committee on Health & Human Services By: Zaffirini
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
602 (Relating to the development and implementation of a computer
database to reduce fraud and abuse in the 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.
The bill would require the Department of Information Resources,
in conjunction with the Health and Human Services Commission, to
develop and implement a database to detect fraud perpetrated by a
program provider or a client.
Assumptions included in the estimate of fiscal implications were:
inclusion of a probable total of four new FTEs, primarily
programmers; certain costs would accrue to Texas Department of
Mental Health and Mental Retardation and Texas Department of
Health; and costs for the Department of Information Resources
associated with the implementation of the provisions of the bill
would be funded through interagency contracts and would be
included in amounts listed below.
To the extent that the database is established and utilized
during the first fiscal year of the biennium and provides a
deterrent to fraudulent activities, it is probable that savings
would accrue through active examination of providers and client
activity. Total savings cannot be estimated, however, if the
system were established during the first year it is anticipated
that savings would be sufficient to offset any costs indicated
below.
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 $106,538 $267,269 4.0
1997 65,288 143,519 4.0
1998 65,288 143,519 4.0
1999 39,115 117,346 4.0
2000 39,115 117,346 4.0
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
No fiscal implication to units of local government is
anticipated.
Source: Department of Information Resources, Department of
Human Services,
Department of Health, Health and Human
Services Commission,
Texas Department of Mental Health and
Mental Retardation
LBB Staff: JK, KF, AZ, DF