LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 30, 1999 TO: Honorable Elliott Naishtat, Chair, House 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 Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB820, As Introduced: 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. * ************************************************************************** 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) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *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) * *************************************************************************** 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: LBB Staff: JK, TP, AZ, PP