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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Robinson

 

DATE TYPED:

1/29/02

 

HB

 

 

SHORT TITLE:

Staff Support for Nursing Facilities

 

SB

242

 

 

ANALYST:

Dunbar

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY02

FY03

FY02

FY03

 

 

 

$4,000.0

 

 

Recurring

General Fund

 

$11,492.0

 

 

Recurring

Medicaid Federal Funds

(Parenthesis ( ) Indicate Expenditure Decreases)

 

 

SOURCES OF INFORMATION

 

Responses Received From

   

Human Services Department (HSD)

 

SUMMARY

 

     Synopsis of Bill

 

Senate Bill 242 appropriates $4,000.0 to the Human Services Department (HSD) from the general fund to provide funding for the recruitment, retention, and salary enhancement of direct care providers in licensed nursing facilities throughout New Mexico.

 

     Significant Issues

 

HSD indicates that there is no language in SB 242 indicating whether the funds are to be matched with Medicaid Federal Financial Participation (FFP).  It is also unclear whether the funds are to be used as a lump sum payment to nursing facilities or factored into the per diem rate currently paid by Medicaid to nursing facilities.  Moreover, HSD notes that the language of the bill is unclear as to whether the increases to the nursing facilities would become part of the Medicaid program’s base budget for nursing facilities.

 

 

 

FISCAL IMPLICATIONS

 

The appropriation of $4,000.0 contained in this bill is a recurring expense to the general fund. Any unexpended or unencumbered balance remaining at the end of FY 03 shall revert to the general fund.

 

The funds appropriated by SB 242 may be matched with federal Medicaid FFP dollars at the current three-to-one ratio.  If all of the funding were to qualify for FFP, approximately $11,492.0 in FFP funds would be added, for a total of  $15,492.0 available for the implementation of SB 242. 

 

The bill points out that all funds must benefit direct care providers.

 

ADMINISTRATIVE IMPLICATIONS

 

Enactment of SB 242 might require Medicaid to recalculate the per diem rates for nursing facilities.

 

TECHNICAL ISSUES

 

See significant issues above.

 

BD/njw

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