LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

May 3, 2005

TO:	Honorable Dianne White Delisi, Chair, House Committee on Public Health
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB2968 by Martinez (Relating to reimbursement for medications administered to Medicaid recipients receiving emergency medical services.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB2968, As Introduced: a negative impact of ($602,562) through the biennium ending August 31, 2007.

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 Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006	($293,131)
2007	($309,431)
2008	($325,067)
2009	($341,320)
2010	($358,386)

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from GR MATCH FOR MEDICAID 758	Probable (Cost) from FEDERAL FUNDS 555
2006	($293,131)	($452,369)
2007	($309,431)	($473,344)
2008	($325,067)	($496,847)
2009	($341,320)	($521,689)
2010	($358,386)	($547,774)

The bill would require the Health and Human Services Commission to ensure that emergency medical services personnel are reimbursed for the cost of a prescription drug administered to a Medicaid recipient who is receiving emergency medical services.

The bill would take effect September 1, 2005.

Fiscal Analysis

The bill would require the Medicaid program to reimburse providers for the cost of providing prescription drugs to a Medicaid recipient during an emergency transport.

Methodology

The Health and Human Services Commission assumes that 1) the number of emergency trips, based on fiscal year 2004 data, would be 74,550 in fiscal year 2006; 2) 20% of emergency ambulance trips would require oral or injected medications ; 3) the cost per episode would be $50.

This results in an All Funds cost in fiscal year 2006 of $745,500 including $293,131 in General Revenue.  The number of trips per year includes a 5% growth factor in each subsequent year.  This cost estimate assumes the federal medical assistance percentage to be 60.68% in FY 2006, 60.47% in FY 2007 and 60.45% in FY 2008 to FY 2010.

Local Government Impact

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

Source Agencies:

529 Health and Human Services Commission

LBB Staff:

JOB, CL, KF, MB