|Date Requested:March 23, 2009
Time Requested:01:34 PM
| FUND(S) |
0403 - Div of Human Services General Administrative Fund, 8722 - Cons Federal Funds Div Human Services Gen Admn Fd
Sources of Revenue
Legislation creates:Neither Program nor Fund
Effect this measure will have on costs and revenues of state government.
| The purpose of this legislation is to require insurers to share information with the Bureau for Medical Services regarding claims that may have been paid by the Bureau during a period when the individual was covered by other insurance.
This is related to mandates from the federal Deficit Reduction Act of 2006 which requires legislation to ensure that Medicaid claims are paid by the appropriate party and that third party payers and others share information with the West Virginia Medicaid Program. The estimated cost savings from passage of this legislation is $8,000,000, of which approximately $2,000,000 would be state dollars and $6,000,000 would be federal funds.
|Effect of Proposal||Fiscal Year|
|1. Estmated Total Cost||0||-8,000,000||-8,000,000|
|Repairs and Alterations||0||0||0|
|2. Estimated Total Revenues||0||0||0|
3. Explanation of above estimates (including long-range effect):
This amount is calculated based on an estimated $8,000,000 savings provided by Bureau for Medical Services' (BMS) contractor, HMS. The state share each year would vary based on the FMAP in effect during each SFY and for the purposes of this fiscal note has been calculated at 25% of the total amount; based on the current enhanced FMAP the amount of state funds would be approximately $1,500,000 (80.45% based on enhanced FMAP effective with passage of the 2009 Federal Stimulus legislation (2008 FMAP of 74.25 (hold harmless) plus 6.2% from Stimulus); however this is effective for a limited time and Federal participation would decrease after expiration, which would yield an amount closer to the 25% state dollars used above.