LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 30, 1999 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: HB2708 by Coleman (Relating to health benefits plan coverage for certain children.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2708, As Introduced: negative impact of $(7,034,212) 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 $(2,402,087) * * 2001 (4,632,125) * * 2002 (7,480,241) * * 2003 (7,947,266) * * 2004 (7,947,266) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 1999 * * 0001 * * 2000 $(2,402,087) 3.0 * * 2001 (4,632,125) 3.0 * * 2002 (7,480,241) 3.0 * * 2003 (7,947,266) 3.0 * * 2004 (7,947,266) 3.0 * *************************************************************************** Technology Impact Personal computers for the new staff are included in the cost estimates. Fiscal Analysis The bill would require the Department of Health to develop and implement a health benefits plan coverage for children who meet the federally defined category of qualified legal alien and who entered the United States after August 22, 1996. The new program would be comparable to the state's Children's Health Insurance Program (CHIP). This group of children is not eligible for Medicaid or CHIP. Methodology 1. It is assumed that three new full-time equivalent positions will be required to oversee and coordinate this program with the state's Medicaid and CHIP programs. Initial costs for these staff are phased in. 2. It is assumed that this program will be implemented in tandem with the CHIP program but without explicit outreach efforts to this population. 3. No Medicaid spillover costs are assumed in the estimates given the lack of data on this population and the concurrent implementation of CHIP. 4. Participants in the program are estimated to be: 1,085 in 2000; 3,917 in 2001; 6,586 in 2002; 7,044 in 2003; 7,044 in 2004. 5. Sixty percent of estimated children who would qualify for the program are assumed to be uninsured, and thirty percent of that group are projected to actually participate in the program. 6. The average cost per child per month is assumed to be $85, including some offset from cost sharing and from the Medicaid program for emergency care for children who otherwise meet Medicaid eligibility criteria. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TP, AZ, MM