Master FIR (1988)

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F I S C A L I M P A C T R E P O R T

SPONSOR:	Madalena		DATE TYPED:	02/15/99		HB	521
SHORT TITLE:		Native American Medicaid Managed Care				SB
					ANALYST:		Burris

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY99

FY2000

FY99

FY2000

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB157

SOURCES OF INFORMATION

LFC Files

Health Policy Commission

Human Services Department analysis not provided

SUMMARY

Synopsis of Bill

House Bill 521 amends the Medicaid Managed Care law to provide the following for any Medicaid eligible Native American in New Mexico:

To be excluded from automatic enrollment in a managed care organization contracting with the state to provide health care services;

To be excluded from the rules limiting the time period when enrolled individuals can opt out of the managed care organization; and

To allow individuals to opt in to the state managed care organizations.

Significant Issues

As currently written, the Medicaid Managed Care statute automatically enrolls Native Americans into a managed care organization unless they choose to opt out.

OTHER SUBSTANTIVE ISSUES

The Health Policy Commission projects House Bill 521 may have the potential to reduce Medicaid costs because the federal government pays 100 percent of Medicaid services provided at Indian Health Services (IHS). Currently, IHS facilities are not contracted providers under Salud!

The Health Policy Commission also reports that approximately $69.0 million per year is being paid to Salud! contractors for Native American health services even though 80 percent of Native Americans enrolled in Salud! still use IHS and tribal facilities for medical services.

RLB/gm