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F I S C A L I M P A C T R E P O R T
SPONSOR Lundstrom
ORIGINAL DATE
LAST UPDATED
1/31/06
HB 31
SHORT TITLE
CHIROPRACTIC SERVICES MEDICAID
REIMBURSEMENT
SB
ANALYST Weber
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
None
(Parenthesis ( ) Indicate Expenditure Decreases)
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)
FY06
FY07
FY08 3 Year
Total Cost
Recurring
or Non-Rec
Fund
Affected
$868.0 $868.0 $1,736.0 Recurring General
$2,232.0 $2,232.0 $4,464.0 Recurring Federal
Medicaid
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Human Services Department (HSD)
SUMMARY
House Bill 31 proposes to require Medicaid to reimburse licensed chiropractic physicians
including the services of licensed doctors of oriental medicine for services rendered within their
scope of practice.
SIGNIFICANT ISSUES
HSD reports that Medicaid does not currently reimburse for services provided by licensed
chiropractors or licensed doctors of oriental medicine. Including reimbursement to chiropractors
and licensed doctors of oriental medicine for their services would be an expansion to the
pg_0002
House Bill 31 Page 2
Medicaid program. Most states do not cover these services under their Medicaid program, as
this is an optional service.
FISCAL IMPLICATIONS
By including chiropractors and doctors of oriental medicine to Medicaid's eligible providers and
health care benefits, there would be a need for approximately $3.1 million to support these new
providers and services. This figure is based on 2% of all Medicaid recipients (both Fee-for
service and managed care) having four (4) visits to a chiropractor or doctor of oriental medicine
on an annual basis. The total expenditure is estimated to be $3.1 million $868 thousand from the
state general fund and $2.32 million from federal Medicaid participation. The funds would have
to be recurring. However, there seems to be uncertainty at HSD since in 2005 the annual cost
estimated for this service was $7.5 million.
Without an appropriation the bill would be unfunded. In order to provide chiropractic and
oriental medicine services, other Medicaid services would have to be cut or eliminated to remain
within the appropriated budget.
MW/mt