LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 17, 2001 TO: Honorable James E. "Pete" Laney, Speaker of the House, House of Representatives FROM: John Keel, Director, Legislative Budget Board IN RE: HB1001 by Naishtat (Relating to the review of the reimbursement methodology for and resource needs of nursing facilities.), As Passed 2nd House ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1001, As Passed 2nd House: negative impact of $(500,000) * * 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(500,000) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from * * Year General Revenue Fund Federal Funds - Federal * * 0001 0555 * * 2002 $(500,000) $(500,000) * * 2003 0 0 * * 2004 0 0 * * 2005 0 0 * * 2006 0 0 * *************************************************************************** Fiscal Analysis The bill would require the Health and Human Services Commission (HHSC) and the Department of Human Services (DHS) to evaluate nursing facilities' Medicaid rate reimbursement methodology including the Texas Index for Level of Effort (TILE) classification system. The bill would also require a report on the evaluation to the Legislature not later than September 1, 2002. The effective date would be September 1, 2001. Methodology HHSC and DHS indicate that an outside contractor would be needed to conduct the evaluation. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 529 Health and Human Services Commission, 324 Texas Department of Human Services LBB Staff: JK, HD, AJ, KF