This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0319 - Dept. of Health To Establish a Fee For Newborn Screening Test (PKU Test) and Establish the Manner of Payment

L.R. NO.  1021-05
BILL NO.  SCS for SB 319 w/ HCA 1
SUBJECT:  Children and Minors; Health Care; Health Care Professionals;
Department of Health; Hospitals; Nurses; Physicians
TYPE:     Original
DATE:     May 7, 1997

                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
Missouri Public
Health Services           $685,748            $847,583          $873,011

Total Estimated
Net Effect on All
State Funds               $685,748            $847,583          $873,011

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
None

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

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
Local Government                $0                  $0                $0

Numbers within parentheses:   (  ) indicate costs or losses
This fiscal note contains 4 pages.
                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Transportation, the Department of
Corrections, the , the Department of Conservation, the Department of
Insurance, the Department of Social Services, the Department of Mental
Health, and the Department of Public Safety - Missouri State Highway Patrol
assume this proposal would not fiscally impact their agencies.

The Department of Health (DOH) assumes fees of $13 to reflect the cost of
processing a specimen.  DOH states they would use a prepaid collection kit
which would be sold to those identified in the proposal as being responsible
for collecting the specimen.  DOH states this strategy is being successfully
used in three other states (Oregon, Wisconsin, and Oklahoma).  DOH further
states that current laboratory costs are covered by the fee and Maternal
Child Health block grant funds.  DOH assumes the Maternal Child Health block
grant funds would be redirected to other programs.  DOH believes funding from
the General Revenue Fund would not be used to support this activity.  DOH
estimates annual revenue of $822,897 would be deposited into the Missouri
Public Health Services Fund.  DOH projects revenue to grow at three percent
annually.  DOH states they currently have an appropriation for providing
formula to individuals and would incur no additional costs.

Missouri Consolidated Health Care Plan (HCP) officials state the proposal
would allow the Department of Health to establish a manner of payment of the
fees associated with testing for PKU that does not require that medical
insurance cover these fees.  HCP states there would be no fiscal impact to
HCP.  However, HCP further states that if the manner of payment established
by the Department of Health would somehow require health insurers to cover
the cost there would be a first year fiscal impact of $26,250.

Officials from the Office of Administration did not respond to our request
for fiscal impact.

FISCAL IMPACT - State Government FY 1998   FY 1999   FY 2000
                                (10 Mo.)

MISSOURI PUBLIC HEALTH
SERVICES FUND

Income - Department of Health
   Laboratory fees              $685,748  $847,583  $873,011

ESTIMATED NET EFFECT ON
MISSOURI PUBLIC HEALTH
SERVICES FUND                   $685,748  $847,583  $873,011

FISCAL IMPACT - Local Government FY 1998   FY 1999   FY 2000
                                (10 Mo.)

                                      $0        $0        $0

FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of
this proposal.


DESCRIPTION

This proposal would enable the Department of Health to require the testing of
every infant born in the state for phenylketonuria (PKU) and other metabolic
or genetic diseases prescribed by the Department.  The attending physician,
licensed midwife, public health facility, ambulatory surgical center or
hospital would assure that appropriate specimens are collected and submitted
to the        Department of Health laboratories.  The Department would
determine and impose a reasonable fee for each newborn screening test and
establish the manner of payment of the fees.

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 Insurance
Department of Corrections
Department of Conservation
Department of Mental Health
Department of Transportation
Department of Public Safety
   Missouri State Highway Patrol
Department of Social Services
SOURCES OF INFORMATION

Department of Health
Missouri Consolidated Health Care Plan

NOT RESPONDING:  Office of Administration