LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 18, 1999 TO: Honorable Judith Zaffirini, Chair, Senate Committee on Human Services FROM: John Keel, Director, Legislative Budget Board IN RE: HB1514 by Maxey (Relating to implementation of certain procedures to ensure accuracy of medical assistance eligibility lists.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1514, As Engrossed: positive impact of $1,744,610 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 $920,610 * * 2001 824,000 * * 2002 824,000 * * 2003 824,000 * * 2004 824,000 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable (Cost) Probable (Cost) Probable Probable * * Year from General from Federal Savings from Savings from * * Revenue Fund Funds General Revenue Federal Funds * * 0001 0555 Fund 0555 * * 0001 * * 2000 $(52,390) $(52,390) $973,000 $1,594,000 * * 2001 0 0 824,000 1,350,000 * * 2002 0 0 824,000 1,350,000 * * 2003 0 0 824,000 1,350,000 * * 2004 0 0 824,000 1,350,000 * *************************************************************************** Technology Impact According to the Department of Human Services, the bill would require changes to the Medicaid database. It is estimated that 1,000 hours of programming at a cost of $104,780 would be required in fiscal year 2000 to achieve required data matches. Fiscal Analysis The bill would amend Chapter 531 of the Government Code to direct the Health and Human Services Commission (HHSC) to ensure that its Medicaid database would be used to match Bureau of Vital Statistics death records with a list of Medicaid eligible persons each month and to ensure that each deceased individual would be removed from the Medicaid eligibility files. The bill would also require HHSC to use its neural network technology to match Bureau of Vital Statistics death records with filed Medicaid payment claims. Methodology According to the Comptroller of Public Accounts (CPA), Texas would save $4.7 million in the 2000-01 biennium, including $1.8 million in General Revenue Funds and $2.9 million in Medicaid federal funds. The CPA reports that the savings would come from reduced premium payments. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 340 Department on Aging, 501 Department of Health, 517 Commission on Alcohol and Drug Abuse, 527 Cancer Council, 532 Interagency Council on Early Childhood Intervention, 529 Health and Human Services Commission, 318 Commission for the Blind, 335 Commission for the Deaf and Hearing Impaired, 330 Rehabilitation Commission, 530 Department of Protective and Regulatory Services, 655 Texas Department of Mental Health and Mental Retardation, 324 Department of Human Services, 355 Children's Trust Fund of Texas Council, 304 Comptroller of Public Accounts LBB Staff: JK, TP, AZ