LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
April 30, 2003

TO:
Honorable Eddie Lucio, Jr., Chair, Senate Committee on International Relations and Trade
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
SB65 by Zaffirini (Relating to the provision of medical assistance to certain legal immigrants.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for SB65, As Introduced: a negative impact of ($10,429,482) through the biennium ending August 31, 2005.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004 ($2,146,821)
2005 ($8,282,661)
2006 ($14,417,061)
2007 ($20,554,341)
2008 ($25,123,461)




Fiscal Year Probable (Cost) from
GR MATCH FOR MEDICAID
758 		Probable (Cost) from
FEDERAL FUNDS--Medicaid
555 		Probable Savings from
TOBACCO RECEIPTS MATCH FOR CHIP
8025 		Probable Savings from
FEDERAL FUNDS--CHIP
555
2004 ($3,323,520) ($4,985,280) $1,176,699 $3,025,797
2005 ($9,459,360) ($14,189,040) $1,176,699 $3,025,797
2006 ($15,593,760) ($23,390,640) $1,176,699 $3,025,797
2007 ($21,731,040) ($32,596,560) $1,176,699 $3,025,797
2008 ($26,300,160) ($39,450,240) $1,176,699 $3,025,797

Fiscal Analysis

The bill would direct the Health and Human Services Commission (HHSC) to provide Medicaid to qualified aliens who have resided in the United States for a period of five years after the date the person entered as a qualified alien (on or after August 22, 1996).  It is estimated that this provision would result in a net increase in expenditures.  An increase in Medicaid expenditures would be partially offset by reduced spending in the Children's Health Insurance Program (CHIP).


Methodology

It is estimated that Medicaid average monthly caseloads would increase by the following:  2,308 in fiscal year 2004, 6,569 fiscal year 2005, 10,829 for fiscal year 2006, 15,091 for fiscal year 2007, and 18,264 for fiscal year 2008.  The estimated average monthly cost per client is $300.  General Revenue would finance approximately 40 percent of the cost.

It is estimated that average monthly caseloads in the CHIP program would decrease by 3,072 for each fiscal year.  The estimated savings per month per client is $114.  Roughly 28 percent of the savings would accrue to General Revenue (Tobacco Receipts Match for CHIP).

This estimate is based primarily on the Health and Human Services Commission response.  Additional administrative costs (not noted above) could occur at the Department of Human Services.


Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
324 Department of Human Services, 529 Health and Human Services Commission
LBB Staff:
JK, WP, EB, PP