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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
1/31/06
HB 324
SHORT TITLE
MEDICAID ELIGIBILITY FOR CERTAIN
ADULTS
SB
ANALYST Weber
APPROPRIATION (dollars in thousands)
Appropriation
Recurring
or Non-Rec
Fund
Affected
FY06
FY07
None
(Parenthesis ( ) Indicate Expenditure Decreases)
Duplicates SB 543
Relates to Appropriation in the General Appropriation Act
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)
FY06
FY07
FY08 3 Year
Total Cost
Recurring
or Non-Rec
Fund
Affected
$41,000 $42,300 $83,300 Recurring General
$103,900 $107,194 $211,094 Recurring Federal
Medicaid
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Human Services Department (HSD)
SUMMARY
House Bill 324 amends Section 27-2B-15 NMSA 1978 to add Medicaid eligibility for adults in
benefit groups with income up to and including 100 percent of Federal Poverty Level (FPL).
FISCAL IMPLICATIONS
HSD estimates that approximately 38,500 adults are under 100 percent of poverty with at least
one child and not currently covered by Medicaid. If all were covered, and assuming a managed
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House Bill 324 Page 2
care monthly premium of $450 for an adult, the cost would be $207 Million per year, or $58.8
Million in GF. Based upon a take-up rate of 70%, the costs would then be $144.9 Million total
and $41 Million in State funds.
SIGNIFICANT ISSUES
JUL Medicaid is the designated category that currently covers adults in benefit groups with gross
income up to and including 85% of FPL provided that the adult(s) have less than the current
standard of need after income deductions and exclusions.
The bill does not specify whether or not income disregards and exclusions would apply or if a
standard of need would still apply.
The bill does not specify this new coverage group as JUL Medicaid or if this is an entirely new
category of eligibility.
Without an appropriation consistent with the increased costs it must be anticipated service or
eligibility reduction in other Medicaid areas would be required.
MW/mt