LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 5, 1999
  
  
          TO:  Honorable Patricia Gray, Chair, House Committee on Public
               Health
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2236  by Gray (Relating to contracts for Medicaid
               managed care), Committee Report 1st House, Substituted
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated.        *
*                                                                        *
*  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 require the State to contract with the University of Texas
Medical Branch or a hospital district for Medicaid managed care services
if a health maintenance organization has been formed in an affected
health care services region.  It is assumed by the Health and Human
Services Commission and the Department of Health that, although
competition may be eliminated in an area, no significant additional
costs to the State would occur.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, TP, AZ