LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 5, 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),
Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1588, Committee Report 1st House, Substituted: 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. *
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The bill would amend Chapter 533 of the Government Code to require
managed care organizations 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 information to and 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 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) *
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All Funds, Five-Year Impact:
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*Fiscal Probable (Cost) from Probable (Cost) from Change in Number of *
* Year General Revenue Fund Federal Funds State Employees from *
* 0001 0555 FY 1999 *
* 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 *
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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 will
be hired by HHSC. Associated office equipment, travel and operating
costs are included in the estimates.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TP, AZ