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

SPONSOR

Picraux

ORIGINAL DATE

LAST UPDATED

01/30/07 HB 575

SHORT TITLE Expand Drug & Alcohol Screening

SB

ANALYST Hanika Ortiz

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY07

FY08

$800.0

recurring

general fund

(Parenthesis ( ) Indicate Expenditure Decreases)

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$.01

Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Defender Department (PDD)

Department of Health (DOH)

SUMMARY

Synopsis of Bill

House Bill 575 appropriates $800 thousand from the general fund to DOH to expand screening,

brief intervention, brief treatment and referral to more intensive treatment, for persons at risk for

dependence on alcohol or drugs. The bill also directs the DOH to add and integrate services in

general medical and nontraditional substance use treatment settings such as community health

centers and hospital emergency departments, where substance abuse historically is not dealt with

in a preventive manner.

House Bill 575 – Page

2

FISCAL IMPLICATIONS

The appropriation of $800 thousand contained in this bill is a recurring expense to the general

fund. Any unexpended or unencumbered balance remaining at the end of FY08 shall revert to the

general fund.

The appropriation requested in the bill is not included in the Governor’s Executive Budget for

the DOH.

DOH reports that the federal Center for Medicare and Medicaid Services (CMS) has approved

billing codes for substance abuse screening and brief intervention services. This opens the door

for the medical assistance division (MAD) of Human Services Department to amend the State

Medicaid Plan and offer these services as part of the adult Medicaid benefit package and obtain

federal match for services provided to adult Medicaid-eligible recipients. DOH claims these

services may be offered as a Medicaid benefit as early as FY09.

SIGNIFICANT ISSUES

DOH reports New Mexico primary care and school-based clinics have provided substance abuse

screening, brief intervention, and treatment referral services through a $3.5 million per year

federal Screening, Brief Intervention, Referral, and Treatment (SBIRT) grant. The grant is

currently in year four, and ends October 1, 2008.

Brief interventions use time-limited, self-help and preventive strategies to promote reductions in

the case of individuals who, while not addicted to alcohol or other drugs, are at risk of becoming

addicted. Individuals who are found to be dependent are assisted in referral to specialized

treatment programs.

New Mexico outcome data taken on a random sample of 20% of clients six months after

receiving SBIRT services show a significant decrease (65%) in days of alcohol consumption in

the total population’s sample as well as a 5.6% decrease in the number of individuals who had

any involvement with the criminal justice system. The findings also revealed a 13.4% increase

in employment and/or education of individuals participating. The number of individuals who

were able to secure permanent housing in the community rose 10.4%, and the number of

individuals who experienced no alcohol- or illegal drug-related health and behavioral social

consequences rose 30%. The survey reflects a need for the full range of SBIRT services to be

available for positive outcomes to occur.

As of November 2006, a total of 32,509 New Mexicans were screened for substance use through

the SBIRT program, of which 7,151 screened positive to receive services. Brief intervention was

given to 4,470 clients, of which 1,208 required brief treatment, and 204 were referred for

specialty substance abuse treatment.

PERFORMANCE IMPLICATIONS

DOH states ValueOptions of New Mexico is administering the SBIRT grant program under the

Interagency Behavioral Health Purchasing Collaborative and will continue if the bill passes.

House Bill 575 – Page

3

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

House Bill 575 is a companion to House Bill 379, which

appropriates $1.3 million to DOH to

expand brief intervention treatment for substance abuse.

House Bill 575 relates to Senate Bill 271, which requires New Mexico to offer adult Medicaid-

eligible recipients certain substance abuse services, including screening and assessment, as part

of its Medicaid benefit package.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

The services currently offered under the SBIRT grant would end with the conclusion of the

federal grant on September 30, 2008.

AHO/csd