LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 8, 1997
TO: Honorable Harvey Hilderbran, Chair IN RE: House Bill No. 593, Committee Report 1st House, as amended
Committee on Human Services By: Thompson
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB593 ( Relating
to the personal needs allowance for certain Medicaid recipients
who are residents of long-term care facilities.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by HB593-Committee Report 1st House, as amended
Implementing the provisions of the bill would result in a net
negative impact of $(4,192,536) to General Revenue Related Funds
through the biennium ending August 31, 1999.
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 add Section 32.024 to the Human
Resources Code. The bill would require the Texas Department
of Human Services and the Texas Department of Mental Health
and Mental Retardation to set a personal needs allowance of
not less than $35 a month for a resident of convalescent or
nursing home or related institution under Chapter 242, Health
and Safety Code, personal care facility, ICF-MR facility, or
any other similar long-term care facility who receives medical
assistance.
Fiscal Analysis
The bill would cover two populations, institutional recipients
of Medical Assistance Only (MAO) and institutional recipients
of Supplemental Security Income (SSI). Both populations currently
receive a $30 per month personal needs allowance. The bill
would increase the personal needs allowance for both populations
to $35 per month. The additional $5 per month allowance to
MAO recipients would be paid by both the state and the federal
government. The estimated Medicaid ratio is 38% state (general
revenue), 62% federal. The additional $5 per month allowance
to SSI recipients would be 100% state funded.
Methodolgy
1. Multiply the average monthly number of recipients MAO (67,160)
by the number of months per year (12) and by the additional
need allowance per month ($5). Divide the result ($4,029,600)
by the Medicaid ratio (38% state, 62 % federal) to determine
the method of finance.
2. Multiply the average monthly number
of SSI recipients (9,417) by the number of months per year (12)
and by the additional need allowance per month ($5). The result
($565,020) would be 100% state funded.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable
Savings/(Cost) Savings/(Cost)
from General from Federal Funds
Revenue Fund
0001 0555
1998 ($2,096,268) ($2,498,352)
1998 (2,096,268) (2,498,352)
2000 (2,096,268) (2,498,352)
2001 (2,096,268) (2,498,352)
2002 (2,096,268) (2,498,352)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($2,096,268)
1999 (2,096,268)
2000 (2,096,268)
2001 (2,096,268)
2002 (2,096,268)
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: Agencies: 655 Texas Department of Mental Health and Mental Retardation
324 Department of Human Services
LBB Staff: JK ,BB ,PP