LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 9, 2001 TO: Honorable Mike Moncrief, Chair, Senate Committee on Health & Human Services FROM: John Keel, Director, Legislative Budget Board IN RE: SB1305 by Harris (Relating to incorporating services for children with special health care needs into the state child health plan for certain low-income children.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1305, As Introduced: negative impact of $(57,529,486) 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 Net Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(27,890,776) * * 2003 (29,638,710) * * 2004 (30,917,574) * * 2005 (31,504,029) * * 2006 (31,910,610) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Probable Probable Probable * * Year Savings/(Cost) Savings/(Cost) Savings/(Cost) Savings/(Cost) * * from General from Title V from GR Match from CHIP * * Revenue Fund Federal Funds - for Title XXI Federal Funds - * * 0001 Federal (CHIP) Federal * * 0555 8010 0555 * * 2002 $3,047,101 $4,055,699 $(30,937,877) $(80,109,780) * * 2003 3,047,101 4,055,699 (32,685,811) (84,258,057) * * 2004 3,047,101 4,055,699 (33,964,675) (87,554,735) * * 2005 3,047,101 4,055,699 (34,551,130) (89,066,507) * * 2006 3,047,101 4,055,699 (34,957,711) (90,114,599) * *************************************************************************** Fiscal Analysis The bill would require the Health and Human Services Commission to provide "wrap-around services" to children with special health care needs in the Children's Health Insurance Program (CHIP). The bill would also require CHIP to adopt the Children with Special Care Needs program's (CSHCN) definition of a "child with special care needs" which is broader than the current CHIP definition. The bill is similar to recommendation HHS-12 in the Comptroller's report, e-Texas: Smaller, Smarter, Faster Government. The bill would take immediate effect upon two-thirds vote of the Legislature, or September 1, 2001. Methodology 1. The Texas Department of Health (TDH) estimates 1973 children in its current program would qualify for CHIP. There would be a savings at TDH when these children transfer to CHIP. 2. TDH also estimates 6.5% of the general population would qualify as a child with special care needs. 3. It is assumed 6.5% of the CHIP enrollees would qualify as a child with special health care needs and qualify for wrap around services. 4. The Health and Human Services Commission estimates $3 in administrative expenses per child with special health care needs and that wrap around services benefit would cost $3,600 per child. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 324 Texas Department of Human Services, 655 TX Dept. of Mental Health & Mental Retardation, 501 Texas Department of Health, 529 Health and Human Services Commission, 304 Comptroller of Public Accounts LBB Staff: JK, HD, AJ