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.
Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.
| SPONSOR: | Miera | DATE TYPED: | 02/10/00 | HB | 293 | ||
| SHORT TITLE: | Annual COLA for DD Service Providers | SB | |||||
| ANALYST: | Esquibel | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY00 | FY01 | FY00 | FY01 | ||
|
See Narrative |
|||||
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to HB2/HAFCS, SB2, SB97, SB251
SOURCES OF INFORMATION
NM Health Policy Commission
Human Services Department
Department of Health did not respond
SUMMARY
Synopsis of Bill
The bill amends the Developmental Disabilities (DD) Act of the Human Rights Code to require the Department of Health (DOH) to include in its annual budget request a cost-of-living adjustment request for service providers. If funds were appropriated, DOH would be required to increase payments to DD service providers according to the percentage amount approved by the Legislature each year.
FISCAL IMPLICATIONS
The Department of Health failed to provide a projection of the fiscal impact of this bill. However, the bill is unclear if the COLA would be directed to the direct care staff or the provider agency.
Also, DOH would be required in the provisions of the bill to use the HCFA market basket index inflation factor as opposed to the CPI inflation index. The HCFA inflation factor is currently 2.9%, the CPI inflation factor is currently 2.5%.
CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP
The bill relates to the General Appropriation Acts (HB2/HAFCS, SB2) which contain base funding for the DD waiver; SB97 which provides for a Medicaid buy-in for DD individuals; and SB251 which provides funding for DD services and direct care staff compensation.
TECHNICAL ISSUES
The Health Policy Commission indicates that DOH contracts for most services with DD providers on a per unit cost, semi-capitated basis. SB293 specifies a COLA for these DD providers but does not require that any appropriated funds would have to be used to increase the wages of the direct care staff which has been cited as the limiting factor in the hiring and retention of quality direct care staff.
RAE/gm