LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 13, 1999
TO: Honorable Jane Nelson, Chair, Senate Committee on Health
Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB143 by Thompson (Relating to the personal needs
allowance for certain Medicaid recipients who are
residents of long-term care facilities.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB143, As Engrossed: negative impact of $(26,476,418) through the *
* biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(13,227,486) *
* 2001 (13,248,932) *
* 2002 (13,248,932) *
* 2003 (13,248,932) *
* 2004 (13,248,932) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year General Revenue Fund Federal Funds *
* 0001 0555 *
* 2000 $(13,227,486) $(14,642,994) *
* 2001 (13,248,932) (14,621,548) *
* 2002 (13,248,932) (14,621,548) *
* 2003 (13,248,932) (14,621,548) *
* 2004 (13,248,932) (14,621,548) *
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Technology Impact
It is assumed that any automation costs associated with increasing the
personal needs allowance could be absorbed by current resources.
Fiscal Analysis
The bill would increase the personal needs allowance to not less than $60
per month for residents of nursing facilities, Intermediate Care
Facilities for the Mentally Retarded (ICF-MR), personal care facilities,
and other similar long-term care facilities who receive medical
assistance, by adding Section 32.024 (v) to the Human Resources Code.
The bill would not apply to residents who are participating in a medical
assistance waiver program. The bill would take effect September 1, 1999.
The bill would impact two populations: institutional residents 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 groups. The additional $30 allowance
to MAO recipients would be paid by both the state and the federal
government. The Medicaid ratio for 2000 is 38.55 percent state (general
revenue) and 61.45 percent federal. The estimated Medicaid ratio for
2001 and subsequent years is 38.64 percent state (general revenue) and
61.36 percent. The additional $30 allowance to SSI recipients would be
paid entirely by the state (general revenue).
Methodology
1. It is estimated the Department of Human Service will serve 58,591 MAO
clients in 2000 and in each subsequent year. It is estimated the
Department of Mental Health and Mental Retardation will serve 7,601 MAO
clients in 2000 and in each subsequent year. The total MAO population
(66,192), when multiplied by the additional personal needs per month
($30) and by the number of months per year (12), results in an additional
annual cost of $23,829,120 in all funds. Applying the pertinent
Medicaid ratio, the General Revenue cost would be $9,186,126 for 2000,
and $9,207,572 for 2001 and each subsequent year. The federal funds cost
would be $14,642,994 for 2000, and $14,621,548 for 2001 and each
subsequent year.
2. It is estimated the Department of Human Services will serve 5,978 SSI
clients in 2000 and in each subsequent year. It is estimated the
Department of Mental Health and Mental Retardation will serve 5,248 SSI
clients in 2000 and in each subsequent year. The total SSI population
(11,226), when multiplied by the additional personal needs per month
($30) and by the number of months per year (12), results in an
additional annual cost of $4,041,360 in General Revenue.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 324 Dept Of Human Services, 655 MHMR
LBB Staff: JK, TP, PP