LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 13, 1999
TO: Honorable Judith Zaffirini, Chair, Senate Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB820 by Naishtat (Relating to review of certain
children's continued eligibility for medical
assistance.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB820, As Engrossed: negative impact of $(18,648,903) 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:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(6,525,442) *
* 2001 (12,123,461) *
* 2002 (13,141,591) *
* 2003 (12,736,374) *
* 2004 (12,330,732) *
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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 (Medicaid Federal Funds (Medicaid) *
* Match) 0555 *
* 0001 *
* 2000 $(6,525,442) $(10,206,460) *
* 2001 (12,123,461) (18,962,337) *
* 2002 (13,141,591) (20,554,796) *
* 2003 (12,736,374) (19,920,995) *
* 2004 (12,330,732) (19,286,530) *
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Fiscal Analysis
The bill would add Section 32.0251 to the Human Resources Code. The bill
would require the Department of Human Services (DHS) to review
automatically a child's eligibility for medical assistance if the child
originally establishes eligibility for medical assistance on the basis of
receipt of financial assistance, and financial assistance ceases.
The bill would have no significant impact on DHS, which determines
eligibility for financial and medical assistance. However, the bill
would increase the number of children eligible for medical assistance.
Medical assistance (Medicaid) benefits would be provided by the
Department of Health.
Methodology
Assumptions related to Medicaid benefits:
1) The bill would increase the average monthly number of children
receiving Medicaid by 15,395 in fiscal year 2000, 28,602 in 2001, 31,004
in 2002, 30,048 in 2003, and 29,091 in 2004.
2) The average monthly Medicaid benefit (premium, prescriptions,
transportation and comprehensive care services) for children for fiscal
year 2000 and each subsequent year is estimated to be $90.57.
3) General revenue would pay approximately 39 percent of the cost, and
matching federal funds would pay 61 percent.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 529 Health and Human Services Commission, 324
Department of Human Services
LBB Staff: JK, TP, AZ, PP