LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 6, 1997 TO: Honorable Hugo Berlanga, Chair IN RE: Senate Bill No. 1163, As Engrossed Committee on Public Health By: Zaffirini House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1163 ( Relating to information and training about Medicaid managed care.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1163-As Engrossed Implementing the provisions of the bill would result in a net negative impact of $(1,000,000) 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 require the Department of Health to implement a pilot project for not less than two years which would test the effectiveness and cost of peer outreach and health education for Medicaid clients in managed care plans. The focus of the pilot would be: 1) to inform Medicaid recipients about the effective use of health care resources; 2) to encourage recipients to seek health care regularly, including prenatal care, medical and dental check-ups, and follow-up care; 3) to follow provider instructions relating to their health; and 4) to keep health care appointments and follow up on missed appointments. Methodolgy It is assumed that the pilot would last two years and would be contracted through a competitive bid process after a location is determined by the Department of Health. It is assumed that the approximately 50 contracted community workers would work with the clients to implement the provisions of the bill. It is assumed that the project would be financed by both state and federal Medicaid dollars and that the Department of Health could implement the provisions of the bill without adding additional staff. 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 ($500,000) ($500,000) 1998 (500,000) (500,000) 2000 2001 2002 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 ($500,000) 1999 (500,000) 2000 0 2001 0 2002 0 No fiscal implication to units of local government is anticipated. Source: Agencies: 501 Department of Health LBB Staff: JK ,BB ,AZ