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

SPONSOR Trujillo

ORIGINAL DATE

LAST UPDATED

1/31/06

HB 324

SHORT TITLE

MEDICAID ELIGIBILITY FOR CERTAIN

ADULTS

SB

ANALYST Weber

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY06

FY07

None

(Parenthesis ( ) Indicate Expenditure Decreases)

Duplicates SB 543

Relates to Appropriation in the General Appropriation Act

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY06

FY07

FY08 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

$41,000 $42,300 $83,300 Recurring General

$103,900 $107,194 $211,094 Recurring Federal

Medicaid

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Human Services Department (HSD)

SUMMARY

House Bill 324 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 (FPL).

FISCAL IMPLICATIONS

HSD estimates that approximately 38,500 adults are under 100 percent of poverty with at least

one child and not currently covered by Medicaid. If all were covered, and assuming a managed

House Bill 324 – Page 2

care monthly premium of $450 for an adult, the cost would be $207 Million per year, or $58.8

Million in GF. Based upon a take-up rate of 70%, the costs would then be $144.9 Million total

and $41 Million in State funds.

SIGNIFICANT ISSUES

JUL Medicaid is the designated category that 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.

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.

Without an appropriation consistent with the increased costs it must be anticipated service or

eligibility reduction in other Medicaid areas would be required.

MW/mt