LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 17, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1094 by Gray (Relating to the creation of a state
prescription drug program for certain Medicare
beneficiaries.), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1094, Committee Report 1st House, Substituted: negative impact *
* of $(273,958,973) 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 $(128,837,482) *
* 2003 (145,121,491) *
* 2004 (163,234,721) *
* 2005 (184,438,137) *
* 2006 (209,358,491) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from General Revenue Fund *
* 0001 0001 *
* 2002 $(143,143,591) $14,306,109 *
* 2003 (161,245,184) 16,123,693 *
* 2004 (181,370,996) 18,136,275 *
* 2005 (204,930,347) 20,492,210 *
* 2006 (232,619,629) 23,261,138 *
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Technology Impact
For the Department of Human Services, a reprogramming cost of $82,500 for
FY 2002 with an annual cost of $8,250 thereafter.
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to
develop and implement a state prescription drug program, similar to the
Medicaid Vendor Drug Program. The program would serve qualified Medicare
beneficiaries, specified low-income Medicare beneficiaries who are
eligible for Medicare cost-sharing, and certain working disabled
clients. The bill would be effective on September 1, 2001.
Methodology
The Department of Health estimates 1,917,709 prescriptions would be
filled in FY 2002, 2,161,353 in FY 2003, 2,431,136 in FY 2004, 2,746,945
in FY 2005, and 3,118,115 in FY 2006, and there would be 10 percent
cost-sharing. It is assumed the average cost per prescription is $74.60.
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, 501 Texas
Department of Health
LBB Staff: JK, HD, AJ