LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 20, 1997
TO: Honorable Harvey Hilderbran, Chair IN RE: House Bill No. 593
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-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(25,026,362) 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 $60 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 $60 per month. The additional $30 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 $30 allowance to SSI recipients
would be 100% state funded.
Methodolgy
1. Multiply average monthly MAO recipients (67,160) by the
number of months per year (12) and the additional need allowance
per month ($30). Divide the result ($24,177,600) by the Medicaid
ratio (38% state, 62% federal) to determine the method of finance.
2.
Multiply average monthly SSI recipients (9,417) by the number
of months per year (12) and the additional need allowance per
month ($30). The result ($3,390,120) 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 Change in Number
Savings/(Cost) Savings/(Cost) of State
from General from Federal Funds Employees from
Revenue Fund FY 1997
0001 0555
1998 ($12,513,181) ($15,054,539) 0.0
1998 (12,513,181) (15,054,539) 0.0
2000 (12,513,181) (15,054,539) 0.0
2001 (12,513,181) (15,054,539) 0.0
2002 (12,513,181) (15,054,539) 0.0
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 ($12,513,181)
1999 (12,513,181)
2000 (12,513,181)
2001 (12,513,181)
2002 (12,513,181)
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: 324 Department of Human Services
655 Texas Department of Mental Health and Mental Retardation
LBB Staff: JK ,BB ,PP