TO: | Honorable John T. Smithee, Chair, House Committee on Insurance |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB2235 by Davis, Yvonne (Relating to operations of physicians and other health care providers.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | ($126,942,385) |
2005 | ($144,734,083) |
2006 | ($164,876,676) |
2007 | ($184,670,113) |
2008 | ($206,949,056) |
Fiscal Year | Probable (Cost) fromGR MATCH FOR MEDICAID 758 |
Probable (Cost) fromFEDERAL FUNDS 555 |
---|---|---|
2004 | ($126,942,385) | ($192,423,276) |
2005 | ($144,734,083) | ($219,523,424) |
2006 | ($164,876,676) | ($250,022,106) |
2007 | ($184,670,113) | ($279,992,478) |
2008 | ($206,949,056) | ($313,725,867) |
The bill would require insurers to pay a clean claim from a preferred provider within 30 days. Section 3.02 would require the Medicaid program to pay at least 110 percent of the applicable rate on January 1, 2003.
The following fiscal impact is in relation to funding levels that are sufficient to continue current law and policies. The fiscal impact is not in relation to an agency's "building block" request, which represents a funding level below funding for the 2002-03 biennium.
The Health and Human Services Commission (HHSC) estimates that the 30-day requirement would result in increased costs to the CHIP program. HHSC estimates an increased cost of $0.23 per member month, with a recipient month caseload of 501,141 in FY 2004 climbing to 523,783 in FY 2008. The state share of expenses would be approximately 28 percent.
HHSC estimates that a 10% fee increase for acute care Medicaid reimbursements (paid through the commission) would require an additional All Funds appropriation of $317,982,512 in FY 2004 climbing to an additional appropriation of $519,204,442 in FY 2008. The state share of expenses would be approximately 40 percent. The impact to other Medicaid operating agencies has not been determined.
Source Agencies: | 327 Employees Retirement System, 454 Department of Insurance, 529 Health and Human Services Commission
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LBB Staff: | JK, JO, JRO, PP
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