LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 21, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2807 by Kitchen (Relating to a demonstration project
to extend Medicaid coverage to certain low-income
individuals.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2807, As Introduced: an impact of $0 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 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year All Local Units of Government Federal Funds - Federal *
* 0555 *
* 2002 $(5,020,453) $(6,256,987) *
* 2003 (3,209,727) (4,431,713) *
* 2004 (3,240,333) (4,461,107) *
* 2005 (3,275,333) (4,496,107) *
* 2006 (3,310,333) (4,531,107) *
***************************************************************************
Technology Impact
For the Department of Human Services (DHS), automation costs at estimated
at $1,848,000 for FY 2002.
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to
establish a demonstration project to provide medical assistance to
adults with family income not more than 100% of the federal poverty level
who are not otherwise eligible for the assistance and do not have
adequate health coverage.
The Texas Department of Health (TDH) would administer the project, select
the counties in which to implement (one of which must have a population
of more than 725,000), and evaluate its effectiveness, including
cost-effectiveness. If the project is cost-effective, TDH is to request
funding to continue or expand the project in the budget request for the
next fiscal biennium. Each even-numbered year of the project, TDH would
provide a report to the legislature on the project operation and
cost-effectiveness.
The bill would require the HHSC to ensure that local government entities
provide the matching funds. HHSC would be required to apply for necessary
waivers.
The bill would be effective immediately if it receives the necessary
two-thirds vote in both chambers of the legislature. Otherwise, the
effective date would be September 1, 2001.
Methodology
1. It is assumed the demonstration project would be approved through the
Medicaid waiver process and federal funds would be available.
2. TDH assumes 2000 clients would participate in the project.
3. It is assumed the average monthly premium cost is $252.56.
4. It is assumed the project would be implemented September 1, 2001.
Local Government Impact
It is assumed local governments would provide the matching funds required
for these services. See table above.
Source Agencies: 529 Health and Human Services Commission, 324
Texas Department of Human Services, 501 Texas
Department of Health
LBB Staff: JK, HD, PP, AJ