TO: | Honorable Dianne White Delisi, Chair, House Committee on Public Health |
FROM: | John S. O'Brien, Director, Legislative Budget Board |
IN RE: | SB22 by Nelson (Relating to long-term care insurance and a partnership for long-term care program.), As Engrossed |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2008 | $0 |
2009 | ($1,159,435) |
2010 | ($238,074) |
2011 | ($238,074) |
2012 | ($238,074) |
Fiscal Year | Probable Savings/(Cost) from GENERAL REVENUE FUND 1 |
Probable Savings/(Cost) from FEDERAL FUNDS 555 |
Change in Number of State Employees from FY 2008 |
---|---|---|---|
2008 | $0 | $0 | 0.0 |
2009 | ($1,159,435) | ($1,159,435) | 7.5 |
2010 | ($238,074) | ($238,074) | 4.5 |
2011 | ($238,074) | ($238,074) | 4.5 |
2012 | ($238,074) | ($238,074) | 4.5 |
According to HHSC, the biennial General Revenue cost of implementing the Long-term Care Partnership program, assumed to be in fiscal year 2009, is estimated at $1,159,435. This cost includes:
1. one-time costs to modify the Texas Integrated Eligibility Redesign System (TIERS);
2. the cost of training eligibility staff, curriculum development, and training material;
3. 7.5 FTEs for program development (future years would require 4.5 FTEs);
4. the cost of the program evaluation; and
5. the cost to implement a public awareness and education campaign directed at consumers.
Implementation of this bill is assumed to result in savings in the number of months of Medicaid-funded LTC, since consumers will rely on private LTC insurance for the initial part of their LTC stay. The impact on caseloads is not expected to be significant in the next five fiscal years, since most consumers purchasing long-term care are not assumed to require LTC placement in the following five years. Savings in Medicaid long-term care would be expected in approximately 2021.
Neither TDI nor DADS anticipate a significant fiscal impact to implement provisions of the bill.
The TIERS modification cost, training materials, and temporary staff would qualify for Medicaid federal match at the administrative match rate of 50 percent. This estimate also assumes that LTC Partnership staff and the awareness campaign would qualify for federal participation at 50 percent. It is unknown if federal funding would be approved for this function.
Source Agencies: | 454 Department of Insurance, 529 Health and Human Services Commission, 539 Aging and Disability Services, Department of
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LBB Staff: | JOB, CL, KJG, JI, YD
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