LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 2, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB532 by Nelson (Relating to medical assistance for
certain persons in need of treatment for breast or
cervical cancer.), Committee Report 2nd House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB532, Committee Report 2nd House, Substituted: negative impact *
* of $(1,107,129) 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 $(594,878) *
* 2003 (512,251) *
* 2004 (512,251) *
* 2005 (512,251) *
* 2006 (512,251) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from GR Probable Savings/(Cost) from *
* Year Match for Medicaid Federal Funds - Federal *
* 0758 0555 *
* 2002 $(594,878) $(1,540,364) *
* 2003 (512,251) (1,320,491) *
* 2004 (512,251) (1,320,491) *
* 2005 (512,251) (1,320,491) *
* 2006 (512,251) (1,320,491) *
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Technology Impact
The bill would require the Department of Human Services (DHS) to modify
existing eligibility systems to track clients gaining Medicaid
eligibility under the federal Breast and Cervical Cancer Prevention and
Treatment Act of 2000. The agency estimates this would require 2,750
programming hours at a cost of $110 per hour, resulting in a one-time
cost of $302,500 in FY 2002. It is assumed the federal government would
provide funding at an enhanced match, or 72.14 percent.
Fiscal Analysis
The bill would require the Department of Health (TDH) to provide Medicaid
services to a person in need of treatment for breast or cervical cancer
who is eligible for that assistance under the federal Breast and Cervical
Cancer Prevention and Treatment Act of 2000 for a continuous period
during which the person requires treatment.
The bill would also require the following changes in the Medicaid
eligibility process for the population noted above: simplifying provider
enrollment, adopting rules to provide for certification of presumptive
eligibility, and elimination of the requirement (to the extent allowed
by federal law) for a personal interview. The impact of these changes
has not been estimated.
Methodology
1. It is estimated 187 women would be newly diagnosed per year with a
cancer type eligible for Medicaid coverage: 97 diagnosed with breast
cancer and 90 diagnosed with cervical cancer. It is anticipated that
treatment and Medicaid eligibility would average one year. (If clients
were to retain Medicaid coverage on average for longer than one year,
costs would increase.)
2. Average monthly costs would include premiums, medical transportation,
and prescription drugs at a cost of (respectively) $765.11, $1.62, and
$50.00. Costs and utilization are assumed to remain constant.
3. It is assumed the federal government would provide funding at an
enhanced match, totaling 72.14 percent in FY 2002, and 72.05 percent in
each subsequent year. State General Revenue would provide the remaining
percentage of funding.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 324 Texas Department of Human Services, 501 Texas
Department of Health
LBB Staff: JK, HD, PP