Colorado Legislative Council Staff Fiscal Note STATE REVISED FISCAL IMPACT (replaces fiscal note dated February 18, 2015) Drafting Number: Prime Sponsor(s): LLS 15-0267 Rep. Becker K.; Coram Date: Bill Status: Fiscal Analyst: February 19, 2015 House Public Health Care and Human Services Lauren Schreier (303-866-3523) BILL TOPIC: AUTHORIZE GENERAL FUND DOLLARS FOR LARC SERVICES Fiscal Impact Summary* FY 2015-2016 FY 2016-2017 State Revenue State Expenditures $5.0 million Increase. See State Expenditures section. General Fund $5.0 million FTE Position Change Appropriation Required: $5,000,000 - Department of Public Health and Environment (FY 2015-16) * This summary shows changes from current law under the bill for each fiscal year. This fiscal note is revised to reflect new information concerning eligibility for LARC services under the bill received subsequent to publication of the original fiscal note. Summary of Legislation The bill continues the Family Planning Program within the Department of Public Health and Environment (DPHE), provides an appropriation of $5,000,000 General Fund in FY 2015-16, and requires an annual appropriation of moneys each year thereafter from the General Fund to the DPHE. The bill specifies that any moneys appropriated to the DPHE under the bill cannot be used to supplant or reduce any other state-funded family planning program appropriations. The funding must be used to continue a grant program providing Long Acting Reversible Contraception (LARC) methods to low-income and uninsured women to reduce the number of unintended pregnancies in Colorado. Under the bill, the DPHE will contract with eligible family planning providers across the state to provide LARC services, including, but not limited to:  the provision of LARC, including intrauterine devices (IUDs) and implants;  training for providers and staff concerning LARC methods, counseling strategies, and managing side effects;  technical assistance concerning billing, pharmacy rules, and clinic management;  general support to family planning clinics;  marketing and outreach strategies; and  other services as deemed necessary by the DPHE. Background In 2009 the Family Planning Program within the DPHE received a multi-year grant allowing the DPHE to expand the LARC program. Prior to the program in 2008, only 1 in 170 young, low-income women in Colorado received an IUD or implant. By 2011, this ratio had reduced to 1 in 15 young, low-income women in Colorado receiving an IUD or implant. Current grant funding expires on June 30, 2015. State Expenditures In FY 2015-16, the bill increases appropriations to the DPHE by $5,000,000 General Fund. The DPHE estimates that the average cost of a LARC method is $900 per patient. As a result, the DPHE estimates serving approximately 5,555 young, low-income women in FY 2015-16. The funding will provide grants to family planning clinics across the state. In future fiscal years the bill requires that the General Fund appropriates moneys to the DPHE for the family planning program. It is assumed that this funding will be set annually through the annual budget process. Potential Medicaid cost savings. Continuing the program will likely contribute to cost avoidance or potential cost savings for pregnancy related costs that would otherwise be funded by Medicaid. Effective Date The bill takes effect upon signature of the Governor, or upon becoming law without his signature. State Appropriations The bill requires a General Fund appropriation of $5,000,000 to the Department of Public Health and Environment. State and Local Government Contacts Public Health and Environment Health Care Policy and Financing Counties