LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 3, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1411 by Moncrief (Relating to dental services provided
under the medical assistance program.), Committee Report
2nd House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1411, Committee Report 2nd House, Substituted: positive impact *
* of $2,024,754 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 $1,010,853 *
* 2003 1,013,901 *
* 2004 1,014,155 *
* 2005 1,014,155 *
* 2006 1,014,155 *
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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 $1,010,853 $1,528,979 *
* 2003 1,013,901 1,525,931 *
* 2004 1,014,155 1,525,677 *
* 2005 1,014,155 1,525,677 *
* 2006 1,014,155 1,525,677 *
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Fiscal Analysis
The bill would revise dental fees paid by the Medicaid program. The bill
would reduce the hospitalization fee, eliminate the nutritional
consultation fee, and eliminate the behavior management fee (except for
patients diagnosed with mental retardation or a mental disability or
disorder, and extraordinary behavior management techniques are necessary
and documented). No fiscal impact is assumed for these changes since the
bill directs that freed-up funding should be redistributed to other
commonly billed dental services for which adequate accountability
measures exist.
The bill would also reduce the reimbursement rate for a stainless steel
crown to an amount equal to the reimbursement rate for an amalgam or
resin filling. The bill does not direct that freed-up funding should be
redistributed, nor does it direct that the reimbursement rate for an
amalgam or resin filling should be increased. Therefore, a savings is
assumed.
Methodology
It is estimated the Medicaid reimbursement for a stainless steel crown
would be reduced by $10.68 per crown. When multiplied by the
anticipated number of steel crowns per year 237,812, the annual savings
would total $2,539,832. Savings would accrue to Federal Funds and to
General Revenue Match for Medicaid. The federal share would total
60.20% in FY 2002, 60.08% in FY 2003, and 60.07% in each subsequent
year.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, HD, PP