SB 0952 - Fiscal Note

Fiscal Note - SB 0952 - Nursing Facility Reimb. Allowance Sunset Date Extended

L.R. NO.  3358-01
BILL NO.  Truly Agreed and Finally Passed SB 952
SUBJECT:  Department of Social Services; Health; Nursing Homes
TYPE:     Original
DATE:     May 8, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Nursing Facility
Federal
Reimbursement
Allowance                       $0                  $0                $0

Nursing Facility
Quality of Care                 $0                  $0                $0

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Medicaid               $74,925,489         $99,900,652       $99,900,652

Total Estimated
Net Effect on All
Federal Funds*         $74,925,489         $99,900,652       $99,900,652
 *Continuation of funding earmarked for existing programs.



                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999

Local Government                $0                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Social Services (DOS) assume that passage of
this proposal would not fiscally impact their agency.  DOS states that if
this proposal were not to pass funding  would need to be replaced by General
Revenue or another funding source to maintain the current level of services.

Oversight assumes this proposal extends the expiration date of the Nursing
Home Reimbursement Allowance and would result in the continuation of current
funding sources for existing programs from the Nursing Facility Federal
Reimbursement Allowance Fund, the Nursing Facility Quality of Care Fund, and
Federal Funds.


FISCAL IMPACT - State Government          FY 1997       FY 1998       FY 1999
                                          (9 Mo.)

NURSING FACILITY FEDERAL
REIMBURSEMENT ALLOWANCE FUND

Income - Department of Social Services
   Assessment on nursing homes        $49,856,740   $66,475,653   $66,475,653

Costs - Department of Social Services
   Program specific expenditures    ($49,856,740) ($66,475,653) ($66,475,653)

ESTIMATED NET EFFECT ON
NURSING FACILITY FEDERAL
REIMBURSEMENT ALLOWANCE FUND                   $0            $0            $0


NURSING FACILITY QUALITY
OF CARE FUND

Income - Department of Social Services
   Transfer from Nursing Facility Federal
     Reimbursement Allowance Fund      $1,125,000    $1,500,000    $1,500,000

Costs - Department of Social Services
   Program specific expenditures     ($1,125,000)  ($1,500,000)  ($1,500,000)

ESTIMATED NET EFFECT ON
NURSING FACILITY QUALITY
OF CARE FUND                                   $0            $0            $0


FEDERAL FUNDS

Income - Department of Social Services
   Medicaid match                     $74,925,489   $99,900,652   $99,900,652

ESTIMATED NET EFFECT ON
FEDERAL FUNDS *                       $74,925,489   $99,900,652   $99,900,652

*Continuation of funding earmarked for existing programs.

FISCAL IMPACT  - Local Government         FY 1997       FY 1998       FY 1999
                                          (9 Mo.)

                                               $0            $0            $0

DESCRIPTION

The Nursing Facility Reimbursement Allowance is scheduled to expire on
September 30, 1996.  This proposal would extend the expiration date to
September 30, 1999.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.


SOURCES OF INFORMATION

Department of Social Services