LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 28, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3038 by Isett (Relating to the employment of Medicaid
recipients and to the enrollment of Medicaid recipients
and state child health plan enrollees in certain group
health benefit plans.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3038, As Introduced: positive impact of $495,783 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:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $85,410 *
* 2003 410,373 *
* 2004 1,288,335 *
* 2005 3,044,706 *
* 2006 3,242,790 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) *
* from GR Match from GR Match from Federal from Federal *
* for Medicaid for Medicaid Funds - Federal Funds - Federal *
* 0758 0758 0555 0555 *
* 2002 $(104,673) $190,083 $(146,856) $287,512 *
* 2003 (515,162) 925,535 (719,842) 1,392,939 *
* 2004 (1,617,117) 2,905,452 (2,258,855) 4,370,912 *
* 2005 (3,821,713) 6,866,419 (5,338,322) 10,329,721 *
* 2006 (4,080,372) 7,323,162 (5,699,628) 11,016,838 *
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Fiscal Analysis
The bill would provide relative to the health insurance premium payment
reimbursement program. The bill would require the Texas Department of
Health (TDH) to identify children, otherwise eligible for Medicaid or
the Children's Health Insurance Program (CHIP), who are eligible to
enroll in a group health benefit plan. TDH would determine if it is
cost-effective for the child to enroll in the group benefit plan. In
cases of cost-effectiveness, TDH would pay premiums, deductibles, and
co-payments. TDH may pay the premium for the child's parent if it is
cost-effective and the child cannot otherwise be enrolled in the plan.
The bill would require the issuer of a group health benefit plan to
allow a child who is participating in the proposed program to enroll in
the plan regardless of the enrollment period, upon written notice from
TDH. These provisions of the bill would be effective on August 31, 2001.
The bill would be effective September 1, 2001.
Methodology
1. It is assumed beginning in March 2002, there would be 200 new Medicaid
families in the program. Thereafter, participation would increase by 10%
per month until there are 5,000 new Medicaid families in the program.
2. TDH estimates the annual Medicaid cost savings per family is $3,668.
The average monthly premium cost is $134 per family. There is an
administrative fee of $29 per family per month.
3. According to the Health and Human Services Commission, the bill as
introduced appears to be in conflict with current federal regulations
and state law and cannot be implemented for CHIP.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 454 Texas Department of Insurance, 529 Health and
Human Services Commission, 324 Texas Department of
Human Services, 501 Texas Department of Health
LBB Staff: JK, HD, AJ, PP