LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 23, 1999
TO: Honorable Sherri Greenberg, Chair, House Committee on
Pensions & Investments
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3007 by Greenberg (Relating to health benefits plan
coverage for children of certain employees paid by state
appropriated money.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3007, As Introduced: negative impact of $(30,090,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(314,000) *
* 2001 (29,776,000) *
* 2002 (31,858,000) *
* 2003 (34,099,000) *
* 2004 (36,479,000) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) *
* from General from All from Federal from Other *
* Revenue Fund GR-Dedicated Funds Funds *
* 0001 Accounts 0555 8042 *
* 8021 *
* 2000 $(314,000) $0 $0 $0 *
* 2001 (29,776,000) (2,331,000) (11,550,000) (9,325,000) *
* 2002 (31,858,000) (2,494,000) (12,358,000) (9,977,000) *
* 2003 (34,099,000) (2,670,000) (13,227,000) (10,679,000) *
* 2004 (36,479,000) (2,856,000) (14,150,000) (11,424,000) *
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Fiscal Analysis
The bill would increase the state's contribution for the cost of
dependent child coverage for certain state employees. Currently, the
state pays 50% of the costs of coverage of dependent children
participating in the Uniform Group Insurance Program, and 80% of the
cost of coverage of dependent children participating in the health
insurance programs administered by the University of Texas System and
the Texas A&M System. The bill would increase the state's contribution
to 100% of the cost of dependent coverage for employees who would
otherwise qualify for Medicaid but are excluded because of their status
as state employees. The Department of Human Services would be
responsible for screening for eligibility.
Methodology
Data do not exist that show the number of state employees with dependent
children that would meet the Medicaid eligibility guidelines. This
analysis uses U.S. Census Bureau data on income and family size to
estimate the eligible number of state employees. It is estimated that
approximately 29,000 of the 223,200 state employees would have dependent
children and have family incomes low enough to qualify for Medicaid. The
annual cost for covering dependent children is estimated at $1,952 in
FY2001, increasing by 7.0% per year to $2,558 in FY2004. The number of
state employees is estimated to remain constant. It is also assumed that
25% of the employees covered by this bill have already enrolled their
dependent children, and therefore the state is already paying part of the
cost. For the other 75% of affected employees, the increased cost to
the state would be for the full 100% of the cost of coverage.
This analysis assumes that eligibility screening would occur during
FY2000, with the increase in the state's contribution beginning in
FY2001. The Department of Human Services projects that the agency will
incur $314,000 in one-time costs in FY2000 for making programming
changes in order to screen the state employees for eligibility.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, PE, SC