LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 26, 1995 TO: Honorable Hugo Berlanga, Chair IN RE: Senate BillNo. 604, Committee on Public Health as engrossed House of Representatives By: Nelson, et al. Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 604 (Relating to a pilot program for the establishment of medical savings accounts to assist Medicaid recipients.) 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 Health and Human Services Commission to develop a pilot program to establish medical savings accounts with Medicaid funds for recipients of acute care services under the State Medicaid program. The Health and Human Services Commission would be required to submit a report to the Governor and the Seventy-sixth Legislature on the effectiveness of the pilot no later than January 15, 1999. This act would expire September 1, 1999. According to the Commission, costs of implementing this bill would include administrative expenses related to project staff and an actuarial consultant to develop the Medicaid Savings Account proposal. 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 Number of State Revenue Fund 001 Funds 555 Employees from FY 1995 1996 $89,889 $89,889 2.0 1997 61,394 61,394 2.0 1998 46,389 46,389 2.0 1999 23,194 23,195 1.0 2000 No fiscal implication to units of local government is anticipated. Source: 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