LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 15, 1997
         
         
      TO: Honorable Hugo Berlanga, Chair            IN RE:  House Bill No. 2913
          Committee on Public Health                              By: Berlanga
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2913 ( Relating 
to the authority of the Health and Human Services Commission 
to administer and operate the Medicaid managed care program.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2913-As Introduced
         
No significant fiscal implication to the State is anticipated. 

         
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 transfer the responsibility for 
the administration and operation of the Medicaid managed care 
program from agencies such as the Department of Health, Department 
of Human Services and the Department of Mental Health and Mental 
Retardation to the Health and Human Services Commission.  It 
is assumed that the transferred managed care activities, staff, 
and funding would include related direct/indirect administrative 
costs.  It is also assumed that Memoranda of Understanding  
would be negotiated between the Commission and affected agencies 
and that no new costs to the state would occur.  In the event 
that relocation of staff is required, there may be some additional 
costs associated with the move which would need to come from 
existing resources.
         
 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   501   Department of Health
                                         324   Department of Human Services
                                         655   Texas Department of Mental Health and Mental Retardation
                                         529   Health and Human Services Commission
                                         
                      LBB Staff:   JK ,BB ,AZ