NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.
The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.
| SPONSOR: | Taylor, J.P. | DATE TYPED: | 02/24/99 | HB | 788 | ||
| SHORT TITLE: | Medicaid Buy-In Program | SB | |||||
| ANALYST: | Burris | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
| $ 750.0 | Recurring | GF | |||
(Parenthesis ( ) Indicate Expenditure Decreases)
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| $ 2,149.1 | Recurring | FF | ||
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to House Bills 2; 137; 222; 223; Senate Bills 2; 24; 33; 197; and 243.
SOURCES OF INFORMATION
LFC Files
Health Policy Commission
Department of Health analysis not provided
Human Services Department analysis not provided
SUMMARY
Synopsis of Bill
House Bill 788 directs the Human Services Department to establish a Medicaid work incentive program that will allow disabled persons with incomes less than 250 percent of the federal poverty level to be eligible for Medicaid benefits. The bill appropriates $750.0 from the general fund to the Human Services Department to fund the program in the following manner: $650.0 is to be used for direct costs of Medicaid participation and $100.0 is to be used for administrative start-up costs.
Significant Issues
In order to be eligible for the program, participants may not be receiving Supplemental Security Income, Medicaid or waiver services concurrent with this program.
It is estimated that approximately 670 individuals will be eligible for this program.
FISCAL IMPLICATIONS
The federal Medicaid match rate for federal fiscal year 2000 is 74.13 percent. Thus, this appropriation will result in approximately $2.1 million in federal revenues.
ADMINISTRATIVE IMPLICATIONS
In order to implement this program and receive federal matching funds, the Human Services Department must submit to and have a plan approved by the Health Care Financing Administration.
OTHER SUBSTANTIVE ISSUES
The federal Balanced Budget Act of 1997 (Act) created many new programs and authorized additional funding for expanding existing services. One of the program affected by the Act is Personal Assistance Services for individuals with Developmental Disabilities. States are now allowed to offer Medicaid to individuals who are disabled and wish to work. Currently, disabled individuals wishing to work risk losing their Medicaid benefits due to income limitations. Therefore, many disabled individuals capable of working choose not to.
States have the option to implement a cost-sharing for individuals to buy-in to Medicaid premiums on a sliding fee scale.
RLB/gm