FUND(S):

Medicaid State Share Fund

Sources of Revenue:

Other Fund Medicaid State Share Fund

Legislation creates:

A New Program



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The stated purpose of this bill is to provide a tax credit to medical providers in an amount equal to their investment in electronic medical record technology.
    
    As written, this bill would provide a Health Care Provider Tax credit to medical providers for their investment in electronic medical record technology without consideration of their Health Care Provider Tax liability. The Tax Department does not have access to the data necessary to calculate the revenue impact of this proposal. However, the reduction in the Medicaid State Share Fund as a result of passage of this bill could be significant.
    
    Unless alternative matching funds are secured, the reduction in the Medicaid State Share Fund will result in a reduction in Federal Funds of roughly three times the tax reduction.
    
    Additional administrative costs to the Tax Department associated with passage of this bill would be minimal.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2005
Increase/Decrease
(use"-")
2006
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    Passage of this bill would provide a Health Care Provider Tax credit to medical providers for their investment in electronic medical record technology without consideration of their Health Care Provider Tax liability. The Tax Department does not have access to the data necessary to calculate the revenue impact of this proposal. However, the reduction in the Medicaid State Share Fund as a result of passage of this bill could be significant.
    
    Unless alternative matching funds are secured, the reduction in the Medicaid State Share Fund will result in a reduction in Federal Funds of roughly three times the tax reduction.
    
    Additional administrative costs to the Tax Department associated with passage of this bill would be minimal.
    



Memorandum


    The stated purpose of this bill is to provide a tax credit to medical providers in an amount equal to their investment in electronic medical record technology.
    
    As written, the bill provides that “the Tax Commissioner shall prescribe such regulations as necessary to carry out the purposes of this section.” Absent further guidance on legislative intent, the formulation of the required regulations will require significant Tax Department resources.



    Person submitting Fiscal Note: Mark Muchow
    Email Address: kpetry@tax.state.wv.us