FISCAL NOTE
FUND(S):
0525 - Consolidated Medical Services Fund
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to clarify the process for voluntary commitment and transport of juveniles in need of mental health or addiction treatment and provide for payment of juvenile mental health treatment when the individual is not covered by insurance.
The Department estimates the fiscal impact for the proposed legislation to be $8,574,853.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2013
Increase/Decrease
(use"-") |
2014
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
8,574,853 |
8,574,853 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
8,574,853 |
8,574,853 |
| 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):
The Department of Health and Human Resources has estimated that the average cost per psychiatric inpatient episode for individuals under 18 years of age is $5,047. This figure is calculated by multiplying the average cost per day of $379.44 (for Medicaid covered individuals) by the average length of stay for voluntary commitments of 13.3 days (for Medicaid covered individuals). The average cost per inpatient episode is then multiplied by the total number of individuals who are estimated to require a voluntary commitment. The estimated number of children who will require a voluntary commitment is calculated by assuming that no more than 10% of non-insured children would require this level of care. Utilizing the Kaiser Family Foundation and the US Census Bureau, it is estimated that between 16,994 and 23,245 children have no insurance coverage. Applying the assumed penetration rate of 10% to all non-insured children would equal between 1,699 and 2,324 children estimated to require a voluntary commitment.
Applying each of the assumptions described above yields an estimated financial impact of $8,574,853. The number is derived by multiplying the estimated number of individuals served (1,699) times the average cost per stay of $5,047. The DHHR understands that the calculated increase in costs may vary greatly based upon actual utilization.
Memorandum
The Department is unable to accurately estimate the number of individuals less than 18 years of age who would require an inpatient stay in a psychiatric facility. The assumptions above are applied to estimate the fiscal impact to the DHHR.
Person submitting Fiscal Note: Rocco S. Fucillo
Email Address: dhhrbudgetoffice@wv.gov