Honorable Charles Schwertner, Chair, Senate Committee on Health & Human Services
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB1475 by Garcia (Relating to establishing an enhanced Medicaid managed care consumer support system.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1475, As Introduced: a negative impact of ($5,093,553) through the biennium ending August 31, 2017.
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
2016
($2,557,079)
2017
($2,536,474)
2018
($2,536,474)
2019
($2,536,474)
2020
($2,536,474)
Fiscal Year
Probable (Cost) from General Revenue Fund 1
Probable (Cost) from Federal Funds 555
Change in Number of State Employees from FY 2015
2016
($2,557,079)
($2,557,080)
6.1
2017
($2,536,474)
($2,536,474)
6.1
2018
($2,536,474)
($2,536,474)
6.1
2019
($2,536,474)
($2,536,474)
6.1
2020
($2,536,474)
($2,536,474)
6.1
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to establish an enhanced Medicaid managed care consumer support system no later than January 1, 2016. The bill would direct HHSC to request any federal waiver or authorization necessary to implement the provisions of the bill and authorizes the agency to delay implementation of any provision until such waiver or authorization is granted. The bill would take effect immediately if a two-thirds majority vote in both houses of the Legislature is received. Otherwise, the bill would take effect on September 1, 2015.
Methodology
According to HHSC, 6.1 full time-equivalents (FTEs) would be needed to implement the Medicaid managed care consumer support system at a cost of $629,159 in fiscal year 2016 and $587,948 in fiscal years 2017 through 2020. Additionally, HHSC estimates 65 contracted community partners (five in each of the 13 Medicaid managed care service areas) would be required to provide the regional network at a cost of $69,000 per partner, or $4,485,000 annually.
Technology
There would be technology costs related to the new FTEs of $20,520 in fiscal year 2016, and $16,964 in fiscal year 2017 and each subsequent year.
Local Government Impact
No fiscal implication to units of local government is anticipated.