LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 12, 2001
TO: Honorable Elliott Naishtat, Chair, House Committee on
Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB986 by Chavez (Relating to the personal needs
allowance for certain Medicaid recipients who are
residents of long-term care facilities.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB986, As Introduced: negative impact of $(14,398,391) 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 $(7,220,788) *
* 2003 (7,177,603) *
* 2004 (7,206,938) *
* 2005 (7,236,274) *
* 2006 (7,265,610) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable *
* Year Savings/(Cost) from Savings/(Cost) from Savings/(Cost) from *
* General Revenue Fund GR Match for Federal Funds - *
* 0001 Medicaid Federal *
* 0758 0555 *
* 2002 $(2,905,096) $(4,315,692) $(7,522,837) *
* 2003 (2,818,157) (4,359,446) (7,485,742) *
* 2004 (2,803,937) (4,403,001) (7,551,267) *
* 2005 (2,789,717) (4,446,557) (7,616,791) *
* 2006 (2,775,497) (4,490,113) (7,682,315) *
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Fiscal Analysis
The bill would amend Section 32.024 (v) of the Human Resources Code by
adding a new subsection requiring the Health and Human Services
Commission (HHSC) or an agency operating part of the medical assistance
program, to set a personal needs allowance (PNA) of not less than $60.00
per month from the current $45.00 per month for residents in a
convalescent or nursing home or related institution licensed under
Chapter 242, Health and Safety Code, personal care facility,
Intermediate Care Facility/Mental Retardation, ICF/MR, or other similar
long-term care facility receiving medical assistance.
Methodology
The Department of Human Services (DHS) projected census of Nursing
Facilities, Personal Care Facilities, and ICF/MR facilities per year for
Fiscal Years 2002 to 2006 multiplied by the number of months per year and
the need allowance difference of $15.00 per month. The agency stated
that the cost for SSI clients is 100 percent State, while the cost for
Medical Assistance Only is Medicaid matchable.
The Department of Mental Health and Mental Retardation (MHMR) estimated
that there are approximately 14,371 residents in ICF/MR facilities who
would be eligible for an increase in the personal needs allowance. MHMR
calculated the annual increase in costs by multiplying the number of
consumers times the annualized proposed $15 a month increase in the PNA,
which is $180. MHMR stated that currently, the PNA for residents who
earn no income is funded entirely with general revenue. The PNA for
residents who have income is eligible for both federal and state
funding.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 655 TX Dept. of Mental Health & Mental Retardation,
324 Texas Department of Human Services, 501 Texas
Department of Health
LBB Staff: JK, HD, ML