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.

(Parenthesis ( ) Indicate Expenditure Decreases)

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to House Bills 2; 137; 208; 222; 223 and Senate Bills 2; 24; 33; 197; and 243

SOURCES OF INFORMATION

LFC Files

Department of Health

Health Policy Commission

Human Services Department - analysis not provided

SUMMARY

Synopsis of SPAC Amendment

The Senate Public Affairs Committee amended SB207 to add language designating the appropriation as a work incentive for handicapped and disabled persons whose incomes are less than 250 percent of federal poverty guidelines. The amendment also specifies that in order to be eligible for the Medicaid buy-in program, persons may not be receiving Supplemental Security Income benefits or services under the Medicaid Disabled and Elderly or Developmentally Disabled Waiver programs. Last, the amendment separates the appropriation to specify $650.0 is to be used for program services and $100.0 is to be used for administrative costs.

Synopsis of Bill

Senate Bill 207 appropriates $750.0 from the general fund to the Human Services Department (HSD)

to provide Medicaid coverage for the handicapped and disabled who are otherwise ineligible for Medicaid.

Significant Issues

The New Mexico Health Policy Commission estimates that approximately 670 individuals in New Mexico will qualify for services.

FISCAL IMPLICATIONS

The general fund appropriation will allow the state to draw down federal match funds of approximately $2,175.0. Other revenues may include buy-in from working disabled persons.

ADMINISTRATIVE IMPLICATIONS

HSD will be required to submit a plan to the Health Care Financing Administration (HCFA) and have it approved before federal match will be appropriated.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

Senate Bill 207 relates to House Bills 2; 137; 208; 222; 223; and Senate Bills 2; 24; 197; and 243.

OTHER SUBSTANTIVE ISSUES

The federal Balanced Budget Act of 1997 (Act) created new programs and authorized additional funding for expanding existing services. One of the existing programs affected is personal assistance services for individuals with developmental disabilities. Currently, disabled individuals risk losing their Medicaid benefits due to the income limitation and choose not to work as the risk is too great. States have been given the flexibility to offer Medicaid to disabled individuals who wish to work.

The expanded program allows disabled individuals to work and obtain Medicaid by paying a premium. This is done by elevating the income limitation to 250 percent of poverty. States are also allowed under the Act to draft a plan to the HCFA to use existing social security disability insurance benefits with a new Medicaid benefit structure. The state will be allowed to obtain federal matching funds for the program.

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