Honorable James B. Frank, Chair, House Committee on Human Services
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB2798 by Klick (Relating to the reimbursement of certain urban teaching hospitals for the provision of inpatient hospital care under Medicaid.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2798, As Introduced: a positive impact of $760,732 through the biennium ending August 31, 2021.
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
2020
$380,366
2021
$380,366
2022
$380,366
2023
$380,366
2024
$380,366
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Savings/(Cost) from Federal Funds 555
2020
$380,366
$526,997
2021
$380,366
$526,997
2022
$380,366
$526,997
2023
$380,366
$526,977
2024
$380,366
$526,997
Fiscal Analysis
The bill would amend Chapter 32 of the Human Resources Code to require the Health and Human Services Commission (HHSC) to update the education adjustment factor used to calculate the medical education add-on at least annually with the most recent data available. HHSC would be authorized to seek a federal waiver or authorization if necessary. The bill would take effect immediately upon receiving a two-thirds majority vote in each house. Otherwise, the bill would take effect September 1, 2019.
Methodology
Currently, the medical education add-on is only calculated at the time of rebasing. According to HHSC, calculating the rate annually would have varying impact on stakeholders and would result in a total savings related to client services of $907,363 in All Funds each fiscal year. HHSC determined that costs associated with obtaining federal approval and adopting new rules could be absorbed within existing resources.
The University of Texas System determined that the bill would not have a fiscal impact on University of Texas health institutions.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
529 Health and Human Services Commission, 720 The University of Texas System Administration