LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 6, 1999 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: HB714 by Naishtat (Relating to hearing screening for newborn children.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB714, As Introduced: negative impact of $(230,573) 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(45,874) * * 2001 (184,699) * * 2002 (185,858) * * 2003 (186,631) * * 2004 (187,790) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from * * Year General Revenue Fund Federal Funds * * 0001 0555 * * 2000 $(45,874) $(73,126) * * 2001 (184,699) (293,301) * * 2002 (185,858) (295,142) * * 2003 (186,631) (296,369) * * 2004 (187,790) (298,210) * *************************************************************************** Fiscal Analysis The bill would require that a physician attending a newborn child or the person attending the delivery of a newborn child ensure that the child is subjected to a screening test approved by the Department of Health for hearing impairments before the child is 181 days old. Methodology The Department of Health assumes that the only costs incurred by the department would be in the Medicaid program for hearing aids and audiological assessments and similar costs for children identified as having a hearing impairment. The hospital reimbursement for the screen would become part of the Diagnosis Related Group (DRG) reimbursement in the Medicaid program. However, the Department of Health has not provided the dollar value of this impact; therefore, the cost estimates understate the fiscal impact to the General Revenue Fund. Local Government Impact It is likely that hospital districts would incur some additional costs to implement a universal hearing screening program for newborns. Source Agencies: LBB Staff: JK, TP, KF