NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.



Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.





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



SPONSOR: Jennings DATE TYPED: 5/7/99 HB
SHORT TITLE: Medicaid Reimbursement SB 3
ANALYST: Burris


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY99 FY2000 FY99 FY2000
($1,200.0)* Rec GF

(Parenthesis ( ) Indicate Expenditure Decreases)



REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY99 FY2000
($3,438.6)* Rec FF

(Parenthesis ( ) Indicate Revenue Decreases)



* The estimated cost to implement this legislation is $1,200 in general fund, matched by $3,438.6 in

federal funds. The fiscal impact is negative because the legislation does not contain an appropriation.



Duplicates HB22

SOURCES OF INFORMATION



LFC Files



SUMMARY



Synopsis of Bill



Senate Bill 3 amends Section 27-2-12-3 NMSA 1978 to require payments to physicians providing services under the managed care system to be not less than the rate paid for Medicare Part B services. The bill also stipulates the physician reimbursement rate shall include a minimum two dollar per member per month management fee for physicians who serve as primary care providers.



Senate Bill 3 will increase the reimbursement rates paid to physicians under the managed care system. However, House Bills 9 and 10 and Senate Bills 15 and 16 do not include appropriations to fund this increase. No appropriation is included in this bill, thus it is likely its passage will create a deficit in the Medicaid Payments division.



FISCAL IMPLICATIONS



The estimated cost to implement this legislation is $1,200.0 in general fund. The federal fund match will be approximately $3,438.6.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



This bill duplicates House Bill 22.



OTHER SUBSTANTIVE ISSUES



LFC staff has been informed that physician reimbursement rates for Medicaid providers have not been increased since 1977.



POSSIBLE QUESTIONS



1. If sufficient revenue is not available to fund physician reimbursement rate increases, is it possible to postpone implementation of this legislation until July 2000?



RLB/njw:gm