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
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* 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. *
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General Revenue-Related Funds, Five-Year Impact:
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* 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) *
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All Funds, Five-Year Impact:
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*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 *
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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