TO: | Honorable Patrick M. Rose, Chair, House Committee on Human Services |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | HB2853 by Davis, John (Relating to certain health insurance plans for children.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | ($234,685) |
2009 | ($124,887) |
2010 | ($123,023) |
2011 | ($124,142) |
2012 | ($125,261) |
Fiscal Year | Probable (Cost) from GENERAL REVENUE FUND 1 |
Probable (Cost) from PREMIUM CO-PAYMENTS 3643 |
Probable (Cost) from FEDERAL FUNDS 555 |
Probable Revenue Gain from PREMIUM CO-PAYMENTS 3643 |
---|---|---|---|---|
2008 | ($234,685) | $0 | ($615,315) | $0 |
2009 | ($124,887) | ($1,358,559) | ($3,820,256) | $1,358,559 |
2010 | ($123,023) | ($1,375,141) | ($3,852,421) | $1,375,141 |
2011 | ($124,142) | ($1,390,266) | ($3,894,191) | $1,390,266 |
2012 | ($125,261) | ($1,405,391) | ($3,935,960) | $1,405,391 |
Fiscal Year | Probable Revenue Gain from DEPT INS OPERATING ACCT 36 |
Change in Number of State Employees from FY 2007 |
---|---|---|
2008 | $0 | 0.0 |
2009 | $3,700 | 2.0 |
2010 | $0 | 2.0 |
2011 | $0 | 2.0 |
2012 | $0 | 2.0 |
Implementation date is assumed to be September 1, 2008 due to the time needed to obtain federal authorization and implement the program. HHSC estimates a caseload of 3,327 average monthly recipient months in fiscal year 2009; 3,364 in fiscal year 2010; 3,401 in fiscal year 2011; and 3,438 in fiscal year 2012. At an average cost of $121.66 per recipient month, estimated client services cost is $4.9 million in fiscal years 2009 and 2010, $5.0 million in fiscal years 2011 and 2012. It is assumed that the state share of all client services costs will be financed with Premium Copayments, resulting in an equal gain to revenue; regardless of caseload, client services would be cost neutral to the state. It is assumed that federal matching funds would be available; however, if the state exhausts its capped federal allotment, General Revenue Funds would be required in lieu of assumed Federal Funds and cost-neutrality for client services would not be achieved.
Administrative costs are estimated to be $0.9 million in fiscal year 2008, $0.4 million in fiscal years 2009 and beyond. These costs include $0.9 million in fiscal year 2008 for one-time system modifications; administrative costs in fiscal years 2009 through 2012 are for enrollment broker services, premium collection fees, and eligibility determination staff (2.0 FTEs in each fiscal year beginning with 2009). Enrollment broker services, premium collection fees, and eligibility determination costs are caseload driven; lower caseloads would result in lower administrative costs, higher caseloads would result in higher administrative costs. It is assumed that administrative costs will be financed with General Revenue Funds and Federal Funds; if federal matching funds are not available, administrative costs would be financed entirely with General Revenue Funds.
Based on the analysis of the Texas Department of Insurance, the bill would result in 37 additional filings and a one-time revenue gain in General Revenue - Dedicated Account Fund 36 of $3,700 in fiscal year 2009. Since General Revenue - Dedicated Account Fund 36 is a self-leveling account, this analysis assumes all revenue generated would go toward fund balances or the maintenance tax would be set to recover a lower level of revenue the following year.
Source Agencies: | 454 Department of Insurance, 529 Health and Human Services Commission
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LBB Staff: | JOB, CL, PP, LR
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