LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 20, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB895 by Moncrief (Relating to the creation of a state
prescription drug program for certain Medicare
beneficiaries.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB895, As Introduced: negative impact of $(234,167,021) 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 $(89,142,093) *
* 2003 (145,024,928) *
* 2004 (157,102,904) *
* 2005 (170,962,900) *
* 2006 (186,891,955) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(89,142,093) *
* 2003 (145,024,928) *
* 2004 (157,102,904) *
* 2005 (170,962,900) *
* 2006 (186,891,955) *
*****************************************************
Technology Impact
The Department of Human Services (DHS) would require 5,000 hours of
reprogramming at $110 an hour, and 50 hours of maintenance annually
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 and specified low-income Medicare beneficiaries
who are eligible for medical assistance for Medicare cost-sharing
payments. The program would be state-funded. Cost-sharing would be
prohibited. The bill would be effective September 1, 2001, but would
require development and implementation not later than January 1, 2002.
Methodology
The Department of Health (TDH) estimates 89,386 clients in FY 2002,
97,004 in FY 2003, 105,083 in FY 2004, 114,354 in FY 2005, and 125,009
in FY 2006 in the proposed program. It is assumed the average cost per
prescription is $74.60 and the average number of prescriptions per month
per client is 1.67. It is also assumed the program would be implemented
January 1, 2002.
Local Government Impact
No significant 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