LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 29, 1997
TO: Honorable Hugo Berlanga, Chair IN RE: House Bill No. 3258, Committee Report 1st House, Substituted
Committee on Public Health By: Coleman
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB3258 ( Relating
to the implementation of the Medicaid managed care program.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB3258-Committee Report 1st House, Substituted
Implementing the provisions of the bill would result in a net
negative impact of $(97,788) 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.
Fiscal Analysis
The bill would amend current law governing the development of
the health and human service delivery system by the Health and
Human Services Commission. The bill would require the Commission
to include certain considerations related to Medicaid managed
care contracts to providers; ensure that Medicaid recipients
are aware of care options available; ensure that contracting
organization develop special disease management programs for
conditions such as asthma and diabetes; appoint regional Medicaid
Managed Care Advisory Committees; direct the Department of Health
and Department of Human Services to submit a plan to the Governor
and Legislative Budget Board that would realize cost savings
for the state by simplifying eligibility criteria and streamlining
eligibility processes for recipients of public assistance; and
provide a number of reports related to Medicaid managed care
implementation to the Governor, Lieutenant Governor and Speaker
of the House of Representatives.
Methodolgy
It is assumed that HHSC would delegate some of the responsibilities
to TDH and DHS but that the State Medicaid Office would add
two full-time equivalent positions which would be phased in
during the 1998-99 biennium to implement the provisions of the
bill. In addition to the staff, it is assumed that other costs
such as travel, postage, printing, sign language interpreters,
personal computers and office supplies would be required. It
is assumed that the costs would be funded in part with Medicaid
matching federal dollars (50% federal and 50% state).
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 (Cost) Probable
(Cost) Change in Number
from General from Federal Funds of State
Revenue Fund Employees from
FY 1997
0001 0555
1998 ($43,008) ($43,008) 1.3
1998 (54,780) (54,780) 2.0
2000 (54,780) (54,780) 2.0
2001 (54,780) (54,780) 2.0
2002 (54,780) (54,780) 2.0
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 ($43,008)
1999 (54,780)
2000 (54,780)
2001 (54,780)
2002 (54,780)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No significant fiscal implication to units of local government
is anticipated.
Source: Agencies: 501 Department of Health
529 Health and Human Services Commission
LBB Staff: JK ,BB ,AZ