Honorable James B. Frank, Chair, House Committee on Human Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3550 by Rose (relating to standards for and services provided by prescribed pediatric extended care centers.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB3550, Committee Report 1st House, Substituted : a negative impact of ($1,068,993) through the biennium ending August 31, 2025.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2024
($520,019)
2025
($548,974)
2026
($563,287)
2027
($570,484)
2028
($577,774)
All Funds, Five-Year Impact:
Fiscal Year
Probable (Cost) from GR Match For Medicaid 758
Probable (Cost) from Federal Funds 555
Probable Revenue Gain from General Revenue Fund 1
Probable Revenue Gain from Foundation School Fund 193
2024
($535,933)
($828,112)
$11,936
$3,978
2025
($582,328)
($868,957)
$25,016
$8,338
2026
($588,958)
($877,936)
$19,253
$6,418
2027
($596,483)
($889,154)
$19,499
$6,500
2028
($604,105)
($900,515)
$19,748
$6,583
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to establish minimum standards for transportation services and establish reimbursement rates for prescribed pediatric extended care centers (PPECC) equal to the average hourly unit rate for private duty nursing (PDC).
Methodology
Assuming a September 1, 2023, start date, the number of units impacted by increasing the rate for PPECCs from $266.52 per day to the average private duty nursing (PDN) rate of $439.86 per day as well as increasing the rates for services under 4 hours is estimated to be 4,427 in fiscal year 2024, increasing each subsequent fiscal year to 4,884 in fiscal year 2028. The estimated cost is $1.4 million in All Funds, including $0.5 million in General Revenue, in fiscal year 2024, increasing each subsequent fiscal year to $1.5 million in All Funds, including $0.6 million in General Revenue, in fiscal year 2028. It is assumed that costs related to adding the new Medicaid benefits, including updating policies and completing reporting requirements, can be accomplished within existing resources.
The net increase in client services payments through managed care is assumed to result in an increase to insurance premium tax revenue, estimated as 1.75 percent of the increased managed care expenditures. Revenue is adjusted for assumed timing of payments and prepayments resulting in increased collections estimated to be less than $0.1 million in fiscal year 2024, less than $0.1 million in fiscal year 2025, less than $0.1 million in fiscal year 2026, less than $0.1 million in fiscal year 2027, and less than $0.1 million in fiscal year 2028. Pursuant to Section 227.001(b), Insurance Code, 25 percent of the revenue is assumed to be deposited to the credit of the Foundation School Fund.
Local Government Impact
No fiscal implication to units of local government is anticipated.