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





SPONSOR: Rodriguez DATE TYPED: 03/09/99 HB
SHORT TITLE: County Indigent Fund Transfers SB 320
ANALYST: Burris

REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY99 FY2000
$ (15,359.8) Rec FF
$ (5,356.8) Rec OSF

(Parenthesis ( ) Indicate Revenue Decreases)



Relates to HB270



SOURCES OF INFORMATION



LFC Files

Department of Finance and Administration

Health Policy Commission

Human Services Department



SUMMARY



Synopsis of Bill



Senate Bill 320 amends the Indigent Hospital and Health Care Act to strike language requiring County Indigent Fund balances in excess of $200.0 or an amount in excess of 30 percent of revenues, whichever is greater, be transferred to the state County Supported Medicaid Fund.



Significant Issues



The elimination of the transfer requirement will allow counties to retain surplus balances of County Indigent Funds. The transfer of these funds have been twice delayed and large fund balances have accumulated in recent years despite the need for indigent care services. However, with the reversions scheduled to begin in FY2000, fund balances have begun to decline. It is possible that without the reversion requirement for County Indigent Funds, counties may begin to accumulate large fund balances again and not provide needed health care services to the medically indigent population.







FISCAL IMPLICATIONS



No appropriation is contained in this bill. However, not transferring the County Indigent Funds to the County Supported Medicaid Fund will result in the loss of the federal match of roughly three to one for Medicaid services. Based on end of FY98 fund balances, $5,356.8.0 will not be transferred. This results in the loss of roughly $15,349.8 in federal match.



The following tables details each county's end of FY98 balance and the total reversion that would result should SB320 not be enacted:



County EOY98 Bal Bal > $200.0 County EOY98 Bal Bal > $200.0
Bernalillo $204,405.0 $4,405.0 McKinley $474,320.0 $274,320.0
Catron $600.0 ($199,400.0) Mora $63,894.0 ($136,106.0)
Chavez $417,105.0 $217,105.0 Otero $322,213.0 $122,213.0
Cibola $288,323.0 $88,323.0 Quay $12,589.0 ($187,411.0)
Colfax $285,135.0 $85,135.0 Rio Arriba $11,524.0 ($188,476.0)
Curry $286,966.0 $86,966.0 Roosevelt ($64,645.0) ($264,645.0)
De Baca $33,405.0 ($166,595.0) San Juan $3,387.0 ($196,613.0)
Dona Ana $159,417.0 ($40,583.0) San Miguel $1,826.0 ($198,174.0)
Eddy $43,689.0 ($156,311.0) Sandoval $215,431.0 $15,431.0
Grant $937.0 ($199,063.0) Santa Fe $2,490,439.0 $2,290,439.0
Guadalupe $11,482.0 ($188,518.0) Sierra ($35,468.0) ($235,468.0)
Harding $0.0 ($200,000.0) Socorro $100.0 ($199,900.0)
Hidalgo $131,859.0 ($68,141.0) Toas $745,108.0 $545,108.0
Lea $842,941.0 $642,941.0 Torrance $22,259.0 ($177,741.0)
Lincoln $0.0 ($200,000.0) Union $192,525.0 ($7,475.0)
Luna $146,082.0 ($53,918.0) Valencia $1,458,689.0 $1,258,689.0
Total Reversion $5,356,755.0


CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

House Bill 270 amends the Indigent Hospital and Health Care Act to expand the definition of eligible providers under the County Indigent Fund.



OTHER SUBSTANTIVE ISSUES



During the 1996 legislative session, an amendment to delay the transfer of County Indigent Fund balances to the County Supported Medicaid Fund to 1998 was passed. During the 1998 legislative session, another amendment was passed to delay the transfers to June 30, 2000. Based on Department of Finance and Administration analysis, County Indigent Fund balances have declined significantly since then. It is possible that county governments are reducing fund balances and there will be no fiscal impact if counties continue this trend.



The passage of Senate Bill 320 will allow counties to retain their balances in County Indigent Funds to pay medical claims for services to the medically indigent population. Individually, counties determine criteria for eligibility for services paid for from County Indigent Funds. Generally, eligibility rates are 100 to 150 percent of per capita income. All counties with county indigent funds cover hospital care. Other allowable services include ambulance, primary care, mental health, substance abuse, home care and nursing home care. These services are less commonly covered, however.



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