FISCAL NOTE
Date Requested: February 14, 2024
Time Requested: 11:41 AM |
| Agency: |
Human Services, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3886 |
Introduced |
HB5685 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND; 8722 - CONS FEDERAL FUNDS DIV HUMAN SERVICES GEN ADMN FD
Sources of Revenue:
General Fund 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 require Medicaid to submit certain proposals with a $3 million or more impact through the rulemaking process, and requiring Medicaid to submit reports regarding program expenditures and recommendations regarding cost containment measures.
The Department estimates the fiscal impact of this legislation to be $646,875 (state = $323,437/federal = $323,438). Because the study is required each year cost would be ongoing. Cost could decrease in future years but not known at this time.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
646,875 |
646,875 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
646,875 |
646,875 |
| 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):
Total costs = $646,875 (state = $323,437/federal = $323,438). 50% Admin match rate used.
In order to complete the requirements of this bill, Myers and Stauffer, LC (MSLC) and Milliman will conduct two analyses: one for the Fee-For -Service (FFS) population and one for the managed care population. Total estimated cost of this study = $646,875. Milliman will work 2,250 hours at an hourly rate of $200, totaling $450,000. MSLC will work 1,125 hours at an hourly rate of $175, totaling $196,875.
Memorandum
There are several studies listed to be part of this bill. For purposes of the Fiscal Note all are encompassed as one study in the contractor costs. Some of these can be done fairly easily, but could produce impractical results. For example, there cannot be a straight comparison to other states without some normalization for member mix, unit costs and acuity which is the more difficult part.
Person submitting Fiscal Note: Cynthia Persily, PhD.
Email Address: dhhrbudgetoffice@wv.gov