FISCAL NOTE
FUND(S):
0407 - Central Office General Administrative Fund, 0525 - Consolidated Medical Services Fund, 5156 - Hospital Services Revenue Fund, 5172 - Health Facility Licensing Fund, 8793 - Substance Abuse Prevention and Treatment Fund
Sources of Revenue:
General Fund,Special 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 address the growing substance abuse issues in this state.
The Department of Health and Human Resources estimates the fiscal impact to comply with the licensing and oversight of chronic pain management clinics to be $503, 202 the first year and $493,335 thereafter. Revenue projections are based on an assumption of 100 pain clinics at $300/year licensing fee. Additional information concerning the possible fiscal impact is being provided in the memorandum section of the fiscal note response.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2012
Increase/Decrease
(use"-") |
2013
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
503,202 |
493,335 |
| Personal Services |
0 |
286,090 |
286,090 |
| Current Expenses |
0 |
207,245 |
207,245 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
9,867 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
30,000 |
30,000 |
Explanation of above estimates (including long-range effect):
The above costs consists of 1 Program Manager ($52,000) for program oversight; 4 Health Facility Nurse Surveyors ($40,000 ea) for survey activity and 1 Office Assistant ($22,500) for program support, as well as employee benefits ($51,590) . Additional costs include current expense operating funds ($207,645) and one-time equipment purchases ($9,867). This staffing level is based on an expected number of pain clinics exceeding 100. The Department was able to identify 57.
Revenue estimates are based on 100 pain clinics at $300/year licensing fee.
Memorandum
The Department of Health and Human Resources believes that the regulation of opioid treatment programs; licensing and oversight of chronic pain management clinics; requirements for certain licensed or certified healthcare professionals to complete drug diversion training and best practice prescribing of controlled substances training; requirements applicable to submission and utilization of information to a controlled substances reporting system; and, restrictions on the sale, transfer, or dispensing of ephedrine, pseudoephedrine and phenylpropanolamine will have a positive effect on the efforts to reduce substance use and abuse within the State of West Virginia, but without the evaluation, modeling and analysis of the effects of those provisions, the Department is unable to project a reliable number for either the decrease in substance abuse services needed or of the cost savings that may take place.
Additionally, the proposed legislation does not contain any aspects that would require modification or additional coverage beyond what the Medicaid Program currently covers for opioid treatment. Medicaid currently requires prescriptions for all covered OTC (over the counter) products (which would include those with ingredients that are designated precursors to the manufacture of methamphetamine). There should be no fiscal impact to the Medicaid program from the proposed legislation.
Person submitting Fiscal Note: Michael J. Lewis, M.D., Ph.D.
Email Address: dhhrbudgetoffice@wv.gov