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F I S C A L I M P A C T R E P O R T
SPONSOR Trujillo
ORIGINAL DATE
LAST UPDATED
02/12/07
HB 817
SHORT TITLE Developmental Disabilities Programs
SB
ANALYST Geisler
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY07
FY08
$1,000.0
Recurring
General Fund
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates: SB 766
SOURCES OF INFORMATION
LFC Files
Responses Received From
Department of Health (DOH)
SUMMARY
Synopsis of Bill
House Bill 817 would appropriate $1,000,000 to the Department of Health (DOH) for general
fund developmental disabilities programs for the purpose of moving toward rate equity with the
developmental disabilities Medicaid Waiver program rates. Any unexpended or unencumbered
balance remaining at the end of FY08 shall revert to the general fund.
FISCAL IMPLICATIONS
An appropriation for the purposes of HB 817 is not contained in the Executive Budget Request
for the Department of Health.
SIGNIFICANT ISSUES
From DOH
The Developmental Disabilities Support Division (DDSD) of DOH has 30 contractors of
Developmental Disabilities (DD) general fund services that would benefit from this
appropriation. Where general fund services are comparable with DD Waiver services, there is a
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House Bill 817 – Page
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total of $6,165,078 general funded services that would be impacted by the rate increases. There
are disparities in the DD general fund rates and the Medicaid Waiver rates. However, this is a
legitimate rate difference because persons who do not qualify for the DD Medicaid Waiver
usually do so because the degree of the disability is less than the requirements for the DD
Waiver. Therefore, individuals served by the general fund program typically have lesser needs
and thus incur lesser costs associated with their services. The last DD general fund rate increase
was 2% in 2001.
The following is comparison between comparable general fund services and Waiver services:
General fund monthly residential rate is $1,530
Waiver funded monthly residential rate is $4,041 (converted from 15 minute per unit rate)
General funded monthly day program rate is $739
Waiver funded monthly rate is $1,027 (converted from daily unit rate)
It should be noted that general fund respite and waiver rates are comparable and thus are not
included in the rate distribution analysis. General fund self directed service and project specific
general funds services are not used in the comparison because there are no comparable services
on the Waiver.
ADMINISTRATIVE IMPLICATIONS
A rate distribution methodology would need to be developed. Rate increases would need to be
allocated through state general fund contracts. Staff of the DDSD programs would need to meet
with a representative group of DD general fund providers to determine the methodology for
distributing the rate increases.
DUPLICATION
HB 817 is duplicated by SB 766.
GG/nt