COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 2016-01

Bill No.: SB 695

Subject: Appropriations; Medicaid

Type: Original

Date: March 18, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Elementary and Secondary Education and the Department of Corrections state this proposal would not fiscally impact their agencies.



Officials from the Department of Social Services - Division of Medical Services (DMS) state that the Medicaid program is an entitlement program. The DMS states it is mandated to provide services authorized by the Missouri General Assembly to Medicaid eligibles regardless of the amount of funding. The DMS states the language in this proposal attached to each section of statute dealing with appropriations seems to imply that statutorily authorized services can be discontinued without specific General Assembly action.



The DMS states adding the words "subject to appropriation" is not anticipated to cost the DMS more than today's operations of the Medicaid program. The DMS states savings are not anticipated either by adding the words "subject to appropriation" due to the ensuing litigation resulting from discontinued or limited services without specific legislative authorization. Therefore, the DMS assume no fiscal impact.



Officials from the Department of Health and Senior Services (DOH) state this proposal has an unknown fiscal impact because all funding for any services provided pursuant to all sections



ASSUMPTION (continued)



listed are limited to the appropriations made available for such services.



Officials from the Department of Mental Health (DMH) state the proposal adds the statement "Funding for any services provided pursuant to this section are limited to the appropriations made available for such services" to 35 statutory sections dealing with the Medicaid program. Several of these statutory sections involve Medicaid programs for which state match is provided from the DMH budget. The DMH assumes the new language is intended to limit increases in state Medicaid expenditures caused by statutory expansion of program eligibility and service coverage. The state match that comes from the DMH budget is for Medicaid program services provided or purchased by the DMH, including those administered under cooperative agreements with the Division of Medical Services. The DMH states it manages these dollars within appropriated limits. Therefore, the DMH assumes the proposed new statutory language has no fiscal impact on DMH.



FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0



FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$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 act stipulates that funding for Medicaid services shall be limited to the appropriations made available for the services.



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

Department of Health and Senior Services

Department of Mental Health

Department of Elementary and Secondary Education

Department of Corrections













Mickey Wilson, CPA

Director

March 18, 2003