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 SB 82

SOURCES OF INFORMATION

Health Policy Commission

SUMMARY

Synopsis of Bill

SB 161 amends Section 24-13-3 of the Burial of Indigents Act in the Health and Safety Code by including the County Indigent Hospital Claims Fund (CIF), in addition to the general fund, as a payment source for indigent burials and cremations. SB 161 also amends Section 27-5-7.1 of the Indigent Hospital and County Health Care Act of the Public Assistance Code to expand the uses of the County Indigent Hospital Claims Fund to pay for the expenses of burial or cremation of an indigent person.

Significant Issues

Although counties already do expend money for the burial of indigent persons, funds for this purpose are expended from the county's respective general funds. Passage of SB 161 may cause expenditures of up to $600 per claim to be expended from either the general fund or the Indigent Claims Fund for the burial or cremation of indigent persons.

FISCAL IMPLICATIONS

While most counties are noting increased financial strain, in particular due to decreasing revenue, use of CIF for burials would alleviate some of the strain to the countys' general funds. However, use of CIF funds for indigent burial may reduce the amount available for health care services paid for out of the CIF. This data should be collected and provided for the annual HPC report to determine the effect of this change.

ADMINISTRATIVE IMPLICATIONS

HPC would need to report county burial expenditures in the annual HPC County Funded Health Care Report.

RELATIONSHIP

Relates to Senate Bill 82, Changing Definitions to Hospital and County Healthcare

OTHER SUBSTANTIVE ISSUES

The Health Policy Commission reports that although counties can pay for almost all healthcare services through the CIF, in FY 2000 most counties limited services to hospital and ambulance. Only 17 counties covered substance abuse and primary care clinic services, 15 counties covered mental health services and 9 counties covered dental services.

In FY 2000, HPC notes that CIF expenditures were over $25 million of which $10 million was expended to pay for providers. Although CIF ending balances were $10.5 million in FY 2000, the balances ranged from over $3.4 million in Santa Fe County to $483 in San Juan County.

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