LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 20, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1053 by Shapleigh (Relating to rates and expenditures
under the Medicaid and state child health plan program in
the Texas-Mexico border region.), Committee Report 1st
House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1053, Committee Report 1st House, Substituted: negative impact *
* of $(118,370,545) 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 $(57,302,090) *
* 2003 (61,068,455) *
* 2004 (64,024,120) *
* 2005 (67,206,317) *
* 2006 (70,547,625) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable *
* Year Savings/(Cost) from Savings/(Cost) from Savings/(Cost) from *
* Tobacco Match for GR Match for Federal Funds - *
* CHIP (Article II - Medicaid Federal *
* Permanent Funds) 0758 0555 *
* 8025 *
* 2002 $(5,250,022) $(52,052,068) $(92,319,489) *
* 2003 (5,515,419) (55,553,036) (97,787,214) *
* 2004 (5,772,542) (58,251,578) (102,549,238) *
* 2005 (6,042,520) (61,163,797) (107,628,112) *
* 2006 (6,325,998) (64,221,627) (112,960,930) *
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Fiscal Analysis
The bill would require the Health and Human Services Commissioner appoint
an advisory committee to develop a strategic plan for eliminating the
disparities between Texas-Mexico border areas and other areas of the
state in the Children's Health Insurance Program (CHIP) and Medicaid.
Disparities are to be eliminated in the following areas: (1) managed
care capitation rates; (2) fee-for-service reimbursements for inpatient
and outpatient hospital services and professional services; (3) total
professional services expenditures per Medicaid recipient or per child
enrolled in the child health program. With advice from the committee,
the Health and Human Services Commission (HHSC) shall equalize Medicaid
rates and expenditures for those clients 19 years of age and younger and
provide physician incentives.
The HHSC would be required to contract with a public university to:
measure changes in the number of Medicaid and CHIP providers in the
border counties between September 1, 2001 and August 31, 2004 and the
effects on consumer access and utilization, determine the effects of the
changes in rates and expenditures, and submit a report to the Legislature
by December 1, 2004.
Reimbursement for travel and related expenses for the advisory committee
would require authorization in the General Appropriations Act.
Methodology
The fiscal impact, provided by the Department of Health (TDH), was based
on work done by TDH for the Border Rate Work Group Report, December 20,
2000. A sixteen percent overall increase in reimbursements was assumed,
as well as a 10 percent increase for professional services for both the
Children's Health Insurance Program and Medicaid programs.
The HHSC could incur additional operating costs relating to operations of
the program and the contract with the public university for the study.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 529 Health and Human Services Commission, 501
Texas Department of Health
LBB Staff: JK, HD, AJ, KF