LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 27, 1999
TO: Honorable Jane Nelson, Chair, Senate Committee on Health
Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1331 by Moncrief (Relating to an assessment of the
effectiveness of Medicaid managed care contracts.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1331, As Introduced: negative impact of $(3,362,996) 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 $(230,000) *
* 2001 (3,132,996) *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable (Cost) from General Probable (Cost) from Medicaid *
* Year Revenue Fund: Medicaid Match Matching Federal Funds *
* 0001 0555 *
* 2000 $(230,000) $(230,000) *
* 2001 (3,132,996) (4,839,933) *
* 2002 0 0 *
* 2003 0 0 *
* 2004 0 0 *
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Fiscal Analysis
The bill would direct the Health and Human Services Commission (HHSC) to
perform an assessment of the effectiveness of Medicaid managed care
contracts prior to the issuance of requests for applications for
additional managed care contracts. The bill would require the
assessment to include an evaluation of the impact of managed care
delivery system, including health maintenance organizations, prepaid
health plans, and primary care case management. The bill would require
HHSC to report its assessment to the governor and certain legislative
officials and committees by December 1, 2000.
Methodology
It is assumed that HHSC would contract for the required assessment.
Costs are estimated to be $460,000 in each year of the 2000-01 biennium.
These costs would be equally shared between the State and federal
government.
It is assumed that the scheduled rollout of managed care in the following
service delivery areas would not occur in fiscal year 2001: Hill
Country, Bell/McLennan counties and Northwest Texas. The delay in the
rollout of managed care in these service delivery areas is anticipated
to cost $2.9 million in General Revenue Funds and $4.6 million in
Federal Funds in fiscal year 2001.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 324 Department of Human Services, 529 Health and
Human Services Commission, 501 Department of Health
LBB Staff: JK, TP, AZ