TO: | Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Tom Craddick, Speaker of the House, House of Representatives |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB727 by Delisi (Relating to disease management programs for certain Medicaid recipients. ), Conference Committee Report |
Estimated Two-year Net Impact to General Revenue Related Funds for HB727, Conference Committee Report: a positive impact of $8,583,000 through the biennium ending August 31, 2005.
Estimated savings should be compared to funding levels sufficient to conform to current policies and law. Estimated savings should not be compared to agency "building block" funding requests.
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $2,851,000 |
2005 | $5,732,000 |
2006 | $5,732,000 |
2007 | $5,732,000 |
2008 | $5,732,000 |
Fiscal Year | Probable Savings/(Cost) from GR MATCH FOR MEDICAID 758 |
Probable Savings/(Cost) from FEDERAL FUNDS 555 |
---|---|---|
2004 | $2,851,000 | $4,282,000 |
2005 | $5,732,000 | $8,595,000 |
2006 | $5,732,000 | $8,595,000 |
2007 | $5,732,000 | $8,595,000 |
2008 | $5,732,000 | $8,595,000 |
The bill would implement HHS 4, "Implement a Disease Management Program for Medicaid Patients" from the Comptroller's e-Texas report, "Limited Government, Unlimited Opportunity".
The bill would direct the Health and Human Services Commission (HHSC) to request contract proposals from providers of disease management programs to provide program services to recipients of medical assistance who have a disease or other chronic health condition that the department determines is a disease or condition that needs disease management and who are not eligible to receive those services under a Medicaid managed care plan. HHSC would prescribe by rule minimum contractor requirements and would not award a contract unless the contract included a written guarantee of state savings. The bill would also require HHSC to: (1) conduct a study (to be completed by December 31, 2003) to analyze the potential for state savings through the use of disease management programs, and (2) consider the results of the study when requesting contract proposals.
Savings assumptions are derived from the Comptroller's fiscal note response for House Bill 727.
1. It is assumed that implementation of disease management programs would occur March 1, 2004.
2. It is assumed that disease management programs would produce client services All Funds savings totaling $7,133,000 in fiscal year 2004 and $14,327,000 in each subsequent year.
3. It is assumed that 40 percent of the savings would accrue to General Revenue, with the remaining 60 percent accruing to Federal Funds.
Source Agencies: | 529 Health and Human Services Commission, 304 Comptroller of Public Accounts, 324 Department of Human Services
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LBB Staff: | JK, SD, JO, EB, PP
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