LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 30, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB98 by Maxey (Relating to the provision of Medicaid to
certain persons making the transition from foster care to
independent living.), Committee Report 1st House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB98, Committee Report 1st House, Substituted: negative impact of *
* $(822,672) through the biennium ending August 31, 2003. *
* *
* 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 *
* 2002 $(335,211) *
* 2003 (487,461) *
* 2004 (670,161) *
* 2005 (749,733) *
* 2006 (839,032) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from GR Probable Savings/(Cost) from *
* Year Match for Medicaid Federal Funds - Federal *
* 0758 0555 *
* 2002 $(335,211) $(504,900) *
* 2003 (487,461) (730,755) *
* 2004 (670,161) (1,004,427) *
* 2005 (749,733) (1,123,905) *
* 2006 (839,032) (1,258,004) *
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Fiscal Analysis
The bill would provide Medicaid coverage for individuals who are under 21
years of age and who on their 18th birthday were in foster care under
the responsibility of the State. The coverage would be provided
regardless of the individual's assets, resources or income.
Methodology
It is assumed that under current law individuals who are in foster care
on their 18th birthday are eligible to participate in the Texas Medicaid
program or the state Children's Health Insurance Program (CHIP) through
the month of their 19th birthday. Therefore, this fiscal note only
applies to individuals age 19 and 20 who were in foster care on their
18th birthday.
The Department of Protective and Regulatory Services estimates that 849
individuals were in foster care on their 18th birthday during fiscal year
2001 and assumes that this number will rise by 2% annually through
fiscal year 2003. It is assumed that the 2% annual rise will continue
through fiscal year 2006 and that 832 individuals (98% of 849) were in
foster care on their 18th birthday during fiscal year 2000. It is
further assumed that individuals will attain the age of 18 in equal
increments throughout the year with 1/12th celebrating their birthday in
September and each month thereafter.
It is assumed that 50% of the individuals who celebrate their 18th
birthday during fiscal years 2000 and 2001 will enroll in the Medicaid
program when they reach the age of 19 and continue their enrollment
through the month of their 21st birthday. Eighty percent of the
individuals who celebrate their 18th birthday during fiscal years 2002 to
2006 will enroll at age 19 and continue through age 20.
The average monthly cost per individual participating in the Medicaid
program includes the cost of providing insured services, cost-reimbursed
services, vendor drugs, medical transportation and administrative
services. The Texas Department of Health has projected this cost to be
$153.77 for fiscal year 2002, $168.89 for fiscal year 2003, $185.09 for
fiscal year 2004, $203.00 for fiscal year 2005 and $222.80 for fiscal
year 2006.
The Federal Medical Assistance Percentage (FMAP) is assumed to be 60.02%
for fiscal year 2002, 60.08% for fiscal year 2003 and 60.07% for fiscal
years 2004, 2005 and 2006.
There will be no significant fiscal impact to the Department of Human
Services which will process about 120 additional Medicaid applications
each month.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 530 Department of Protective and Regulatory
Services, 529 Health and Human Services Commission,
324 Texas Department of Human Services, 501
Texas Department of Health
LBB Staff: JK, HD, NM