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

SPONSOR Lundstrom

ORIGINAL DATE

LAST UPDATED

1/31/06

HB 31

SHORT TITLE

CHIROPRACTIC SERVICES MEDICAID

REIMBURSEMENT

SB

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

None

(Parenthesis ( ) Indicate Expenditure Decreases)

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY06

FY07

FY08 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

$868.0 $868.0 $1,736.0 Recurring General

$2,232.0 $2,232.0 $4,464.0 Recurring Federal

Medicaid

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

SUMMARY

House Bill 31 proposes to require Medicaid to reimburse licensed chiropractic physicians

including the services of licensed doctors of oriental medicine for services rendered within their

scope of practice.

SIGNIFICANT ISSUES

HSD reports that Medicaid does not currently reimburse for services provided by licensed

chiropractors or licensed doctors of oriental medicine. Including reimbursement to chiropractors

and licensed doctors of oriental medicine for their services would be an expansion to the

House Bill 31– Page 2

Medicaid program. Most states do not cover these services under their Medicaid program, as

this is an optional service.

FISCAL IMPLICATIONS

By including chiropractors and doctors of oriental medicine to Medicaid's eligible providers and

health care benefits, there would be a need for approximately $3.1 million to support these new

providers and services. This figure is based on 2% of all Medicaid recipients (both Fee-for

service and managed care) having four (4) visits to a chiropractor or doctor of oriental medicine

on an annual basis. The total expenditure is estimated to be $3.1 million $868 thousand from the

state general fund and $2.32 million from federal Medicaid participation. The funds would have

to be recurring. However, there seems to be uncertainty at HSD since in 2005 the annual cost

estimated for this service was $7.5 million.

Without an appropriation the bill would be unfunded. In order to provide chiropractic and

oriental medicine services, other Medicaid services would have to be cut or eliminated to remain

within the appropriated budget.

MW/mt