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

SPONSOR Begaye

DATE TYPED 1/26/05

HB 114

SHORT TITLE Adult Medicaid eligibility

SB

ANALYST Weber

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$41,000.0 Recurring General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$103,000.0

Recurring Federal Medicaid

Funds

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

SUMMARY

Synopsis of Bill

House Bill 114 amends Section 27-2B-15 NMSA 1978 to add Medicaid eligibility for adults in

benefit groups with income up to and including 100 percent of Federal Poverty Level (FPI).

Significant Issues

The Human Service Department Comments.

JUL Medicaid currently covers adults in benefit groups with gross income up to and including

85% of FPL provided that the adult(s) have less than the current standard of need after income

deductions and exclusions.

House Bill 114 -- Page 2

The bill does not specify whether or not income disregards and exclusions would apply or if a

standard of need would still apply.

The bill does not specify this new coverage group as JUL Medicaid or if this is an entirely new

category of eligibility.

FISCAL IMPLICATIONS

HSD estimates that approximately 38,409 adults are under 100% of poverty and not insured

through Medicaid with at least one child. If all were covered, and assuming a capitated per

member per month rate of $450, the total potential liability would be $207 million per year, ap-

proximately $58 million in general fund and the balance from the federal Medicaid program.

The take-up rate for this program is anticipated be in the area of 70 percent. The costs would

then be $145 million total and $41 million in state funds.

MW/lg:yr