| TO: | Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | SB47 by Nelson (Relating to the Medicaid fraud reduction pilot program.), As Introduced |
The bill would modify Section 531.1063(g), Government Code by authorizing the Health and Human Services Commission (HHSC) to implement statewide rollout of the Medicaid fraud reduction pilot if deemed cost-effective. Section 2 of the bill would require HHSC to provide a status report by February 1, 2006 to the Governor, Lt. Governor, Speaker of the House, and presiding officer of each standing committee of the senate and house of representatives having jurisdiction over the state Medicaid program. The report would include cost benefit information, a cost effectiveness evaluation, and any problems encountered with statewide implementation of the pilot.
The Health and Human Services Commission has indicated that the fiscal impact of the bill cannot be determined at this time, due to the fact that the initial pilot cost effectiveness study has not been completed. Without information on cost and savings, a reliable cost estimate is not possible. However, based on the fiscal note for the initial pilot program included in House Bill 2292, 78th Legislature, the bill would result in some net savings. A final evaluation of the initial pilot would provide the information needed to estimate the cost of full state-wide implementation.
If passed by a two-thirds vote in each house, the bill would become effective immediately. If not, the bill would take effect September 1, 2005.
| Source Agencies: | 529 Health and Human Services Commission
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| LBB Staff: | JOB, SD, WP, CL, PP, MB
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