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F I S C A L I M P A C T R E P O R T
SPONSOR Picraux
ORIGINAL DATE
LAST UPDATED
1/23/06
HB 218
SHORT TITLE Diabetes Education & Prevention Network
SB
ANALYST Lewis
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
950.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates SB 219
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Health (DOH)
Health Policy Commission (HPC)
Public Education Department (PED)
SUMMARY
FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE
Synopsis of Bill
House Bill 218 appropriates $950,000 from the general fund to the Department of Health for ex-
penditure in fiscal years 2007 through 2010 to contract with a statewide nonprofit organization
involved in diabetes education and prevention efforts that will develop and support a network of
diabetes organizations and resources and will facilitate collaborative planning, implementation
and evaluation of diabetes education, prevention and management services.
FISCAL IMPLICATIONS
The appropriation of $950,000 contained in this bill is a recurring expense to the general fund.
Any unexpended or unencumbered balance remaining at the end of fiscal year 2010 shall revert
to the general fund.
pg_0002
House Bill 218 – Page
2
SIGNIFICANT ISSUES
In 2004 the Department of Health (DOH) conducted a statewide diabetes assessment, which
identified as the top priority the development of a statewide network to provide a coordinated
response. Such a network was also a priority of the Diabetes Advisory Council’s 2010 Strategic
Plan (www.diabetesnm.org).
According to the DOH, 42 percent of New Mexicans live in rural areas, and 32 of 33 counties
have areas that are medically underserved (www.HRSA.gov). Residents of these areas have lim-
ited access to local health resources and services, experience isolation and must often travel long
distances for specialized health care. As a result people with diabetes don’t always have access to
the preventive services and medical care they need in their communities, underscoring the need
for a coordinated response.
However, the appropriation in HB218 is not part of the DOH executive budget request.
The Health Policy Commission (HPC) observes that, according to the Diabetes Prevent and Con-
trol Program of the DOH, the annual cost to New Mexico for diabetes care is $1.1 Billion. This
cost includes care provided in hospitals, medical offices, nursing homes and home health care,
and includes the cost of amputations and treatment of end-stage renal disease with dialysis. It
does not include care and treatment provided by dental, eye, podiatric and dietary professionals,
costs associated with school-based and public health clinics, many vision products, research,
over-the counter medications and indirect expenditures associated with lost productivity and
earnings due to disability or death.
Direct medical costs for individuals with diabetes average $13,243 per year, versus $2,560 for
those without diabetes.
PERFORMANCE IMPLICATIONS
The Public Education Department (PED) notes that his bill could positively impact PED per-
formance measures that relate to the Governor’s Obesity Prevention initiative. Obesity preven-
tion initiatives, school attendance and graduation rates enhance student performance by increas-
ing the number of students performing at grade level in math and reading.
ADMINISTRATIVE IMPLICATIONS
DOH states that allocation of these funds would require a Request for Proposal (RFP) process.
At lease one FTE (Health Educator) would be needed to provide community outreach. The staff
person’s time would need to be dedicated to the tasks associated with the proposed legislation,
including community organizing and outreach development and monitoring of the contract, tech-
nical assistance, and evaluation.
ML/nt