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



SPONSOR: Heaton DATE TYPED: 02/18/99 HB 223/aHCPAC
SHORT TITLE: Unserved Disabled & Elderly Services SB
ANALYST: Burris

APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
$ 4,400.0 Recurring GF



(Parenthesis ( ) Indicate Expenditure Decreases)



REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY99 FY2000
$ 13,200.0 Recurring FF



(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates SB33 Relates to SB24

SOURCES OF INFORMATION



LFC Files

Developmental Disabilities Planning Council

New Mexico Health Policy Commission

Governor's Committee on Concerns of the Handicapped

Human Services Department

Department of Health



SUMMARY



Synopsis of HCPAC Amendment



The Consumer and Public Affairs Committee amended House Bill 223 to appropriate the general fund to serve persons eligible for the Disabled and Elderly (D&E) program to the Department of Health instead of the Human Services Department. The amendment also strikes language in the bill referring to the appropriation serving approximately 1,000 individuals.



Synopsis of Bill



House Bill 223 appropriates $4.4 million from the general fund to the Human Services Department in fiscal year 2000 to serve 1000 additional persons through the Medicaid D&E Waiver Program.



Significant Issues



The D&E Waiver program allows people to be cared for in home and community based settings rather than in nursing homes, which allows for greater patient input into services provided. Furthermore, the program is more cost effective than nursing homes. The average cost per patient in the D&E Waiver program is $15.0, whereas nursing home costs aver $35.0 per year.



FISCAL IMPLICATIONS



The federal match rate for the Medicaid D&E Waiver program is roughly three to one. Thus, the appropriation will result in approximately $13.2 million in federal funds.



TECHNICAL ISSUES



Currently, the general fund dollars associated with the D&E Waiver program are appropriated to the Department of Health and administered by the Long Term Care and Restorative Care Division.



The Human Services Department will need to get approval from the Health Care Financing Administration to serve additional eligibles. It is not anticipated there will be any difficulty doing so.



OTHER SUBSTANTIVE ISSUES



According to the Developmental Disability Planning Council, there are approximately 4000 people on the waiting list for D&E Waiver services. Thus, House Bill 223 will substantially reduce, if not eliminate, the long-standing waiting list for this program.



POSSIBLE QUESTIONS



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