LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 9, 1999
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2085 by McCall (Relating to the continuation and
functions of the Texas Board and Department of Health,
including the operation of certain boards and councils
administratively attached to the department; providing
administrative penalties.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2085, As Introduced: positive impact of $2,375,000 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. *
* *
* The bill would provide for the continuation of the Texas Department *
* of Health and certain boards and councils administratively *
* attached to the department until September 1, 2011. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $650,000 *
* 2001 1,725,000 *
* 2002 1,725,000 *
* 2003 1,725,000 *
* 2004 1,725,000 *
****************************************************
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 $650,000 $0 *
* 2001 1,725,000 1,075,000 *
* 2002 1,725,000 1,075,000 *
* 2003 1,725,000 1,075,000 *
* 2004 1,725,000 1,075,000 *
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Fiscal Analysis
Fiscal analysis is based on information submitted by the Sunset Advisory
Commission. Sections of the bill that would result in a fiscal impact
include a provision requiring electronic funds transfer of Medicaid
payments and a provision requiring the department to integrate health
care delivery programs. A provision in the bill that would transfer
responsibility for administrative hearings in contested cases under
Chapter 2001, Government Code, to the State Office of Administrative
Hearings is not projected to result in increased overall costs to the
state. It is assumed that the provision of the bill requiring an annual
external audit of the Medicaid fiscal agent could be accomplished within
existing resources. It is assumed that provisions relating to a
comprehensive strategic and operational plan and requiring the department
to comprehensively study the impact that the state's Medicaid managed
care program has had on populations served by the department and on
providers, clinics, and hospitals can be accomplished within existing
resources. Other provisions in the bill are not anticipated to have a
significant fiscal impact.
The bill would also create the Emergency Medical Services Advisory
Council, a 15 member council appointed by the governor. It is assumed
that members of the council would receive reimbursement for travel and
related costs. Reimbursement for travel and other expenses for the
council would require authority in the General Appropriations Act.
Methodology
The estimates included in the tables above are based on analysis
submitted by the Sunset Advisory Commission. The provision in the bill
that requires electronic funds transfer of Medicaid payments is estimated
to save approximately $650,000 per fiscal year due to savings in
contract costs from administrative efficiencies due to paying Medicaid
providers through electronic funds transfer rather than by mailing paper
checks, offset by reduced interest earnings from the quicker payment of
claims.
The provision in the bill that requires the department to integrate
health care delivery programs is estimated to save approximately $2
million in General Revenue and Federal funds per year, beginning in
fiscal year 2001. Savings are estimated to be 10 percent of the amounts
currently expended by the department for administration of health care
delivery programs.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TP, KF