FISCAL NOTE
Date Requested: February 12, 2025
Time Requested: 08:25 PM |
| Agency: |
Human Services, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1615 |
Introduced |
HB2159 |
|
|---|
| CBD Subject: |
Human Services |
|---|
|
FUND(S):
0484 - Bureau For Medical Services -Policy and Programming; 8722 - Cons Federal Funds Div Human Resources Gen Admin Fd
Sources of Revenue:
Other Fund General and Federal
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to provide for the assessment of interest on overpayments by the Bureau for Medical Services; establishing an interest rate and method for accrual; and the retention of interest received.
SFY24 monthly accounts receivable balances range between $16M-$24M per month. The interest rate selected will determine the potential impact to the Department. The Department estimates the interest rate to be between 4% and 8% per annum which would yield $861,536 - $1,723,071 reduction in expenditures based on the SFY24 monthly average accounts receivable balance.
Refunds of overpayments are reflected as expenditure reductions.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-861,536 |
-861,536 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
-861,536 |
-861,536 |
| 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):
SFY24 monthly accounts receivable balances range between $16M-$24M per month. The interest rate selected will determine the potential impact to the Department. The Department estimates the interest rate to be between 4% and 8% per annum which would yield $861,536 - $1,723,071 reduction in expenditures based on the SFY24 monthly average accounts receivable balance.
The amount is calculated by taking the monthly accounts receivable balance and applying a daily interest calculation to each month.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Alex J. Mayer
Email Address: osafiscalnotes@wv.gov