LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 29, 1999 TO: Honorable Judith Zaffirini, Chair, Senate Committee on Human Services FROM: John Keel, Director, Legislative Budget Board IN RE: SB1588 by Zaffirini (Relating to fraud control procedures for the Medicaid managed care program.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1588, As Introduced: negative impact of $(94,023) 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. * ************************************************************************** The bill would amend Chapter 533 of the Government Code to require each managed care organization contracting with the Health and Human Services Commission (HHSC) to submit descriptions of any financial or other business relationship between the managed care organization and any subcontractors, subcontractor contracts, and the managed care organization's fraud control plan. The bill would require each managed care organization to submit encounter data and to cooperate with HHSC's Office of Investigations and Enforcement. The bill would only apply to a contract entered into on or after the effective date of the Act. Currently Medicaid managed care organizations do not have contracts with HHSC. Managed care contracts are with the Department of Health and Department of Human Services. General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(47,579) * * 2001 (46,444) * * 2002 (46,444) * * 2003 (46,444) * * 2004 (46,444) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable (Cost) from Probable (Cost) from Change in Number of * * Year General Revenue Medicaid Matching State Employees from * * Fund: GR Match for Federal Funds FY 1999 * * Medicaid 0555 * * 0001 * * 2000 $(47,579) $(47,579) 2.0 * * 2001 (46,444) (46,444) 2.0 * * 2002 (46,444) (46,444) 2.0 * * 2003 (46,444) (46,444) 2.0 * * 2004 (46,444) (46,444) 2.0 * ************************************************************************** Technology Impact Personal computers would be required for the two new full-time equivalent positions at the Health and Human Services Commission. Fiscal Analysis According to the Health and Human Services Commission, the bill would require HHSC to hire an additional attorney and one support position to manage the contracts with managed care organizations and their subcontractors. Methodology The estimates assume that one attorney and administrative technician would be hired by HHSC. Associated office equipment, travel and operating costs are included. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TP, AZ