Honorable Lacey Hull, Chair, House Committee on Human Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB1201 by Manuel (Relating to a pilot program to provide Medicaid coverage of doula services.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1201, As Introduced: a negative impact of ($1,352,085) through the biennium ending August 31, 2027.
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
2026
($891,714)
2027
($460,371)
2028
($460,866)
2029
($461,278)
2030
($461,698)
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from GR Match For Medicaid 758
Probable Savings/(Cost) from Federal Funds 555
Change in Number of State Employees from FY 2025
2026
($891,714)
($632,022)
3.0
2027
($460,371)
($196,348)
3.0
2028
($460,866)
($196,513)
3.0
2029
($461,278)
($196,650)
3.0
2030
($461,698)
($196,791)
3.0
Fiscal Analysis
The bill would require the Health and Human Services Commission (HHSC) to establish a pilot program to provide coverage for certain services provided by a doula in the Medicaid program.
The bill would require HHSC to publish an annual report evaluating total costs and impact of the pilot program. The bill would require that HHSC, not later than September 1, 2030, submit to the Legislature a report summarizing the results of the pilot program, including certain feedback and recommendations.
The bill would take effect September 1, 2025.
Methodology
According to HHSC, 3.5 additional full-time equivalents (FTEs) would be needed to conduct activities required by the bill, including implementation and management of the pilot program and data collection and reporting. This analysis only assumes a total of 3.0 FTEs, including 1.0 Program Specialist position and 2.0 Data Analyst positions, would be needed from fiscal year 2026 through fiscal year 2030 to implement the provisions of the bill. Personnel-related costs, including salaries, travel, and overhead, are estimated to total $562,707 from All Funds in fiscal year 2026 and $533,597 from All Funds in fiscal year 2027.
This analysis assumes that HHSC will require $961,029 from All Funds in fiscal year 2026 and $123,122 from All Funds in subsequent fiscal years for necessary system updates.
This analysis assumes that any costs associated with client services could be absorbed using existing resources.
Technology
The total non-FTE-related technology cost is estimated to be $961,029 from All Funds in fiscal year 2026 and $123,122 from All Funds in fiscal year 2027.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.