NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to HB2/SB98, HB664, SB522, SB474

SOURCES OF INFORMATION

State Agency on Aging (SAOA)

NM Health Policy Commission (HPC)

Children, Youth and Families Department (CYFD)

Human Services Department (HSD) did not respond

SUMMARY

Synopsis of Bill

House Bill 640 appropriates $13.1 million from the general fund for the following:

• •$4.2 million to SAOA for adult daycare, Alzheimer's respite, general respite, case management, chore, home-delivered meals, home health, homemaker, housekeeping and home visiting programs;



• •$4.4 million to HSD for enhancement of the personal care option, Medicaid buy-in services for the working disabled and disabled and elderly (D&E) Medicaid waiver program;



• •$3.8 million to CYFD for attendant care, adult daycare, home care and adult protective services; and



• •$700.0 to CYFD for various in-home services for elderly persons living on the Navajo Nation.

Significant Issues

SAOA indicates the provisions of the bill would aid in serving 2,300 individuals.

FISCAL IMPLICATIONS

The appropriation of $13,100.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.

The bill provides $4.4 million for expansion of Medicaid's person care buy-in for the working disabled and for the D&E Medicaid waiver program. Matching federal funds generated through these Medicaid programs include approximately $13.2 million.

House Bill 640 relates to HB2 which contains $22 million for seniors' community services in the FY02 SAOA budget; and $956.0 in general fund in DOH's FY02 budget for D&E provider rate increases and the D&E waiting list.

RELATIONSHIP

House Bill 640 relates to the following:

• •HB2/SB98, General Appropriation Acts
• •HB664, Health Caregiver Training
• •SB522, Older Adult Services
• •SB474, Senior Citizen Fuel Costs

TECHNICAL ISSUES

HPC indicates the bill does not specify that elderly must qualify for the services by criteria (i.e., income criteria-% of the federal poverty level). Consequently, seniors could be served who could afford to pay for the services themselves or through third party insurers.

CYFD indicates the bill directs the appropriation to the elderly adult population which would exclude younger vulnerable adults.

POSSIBLE QUESTIONS

1. Have these or other services been endorsed by the interagency committee on long-term care?

RAE/prr