TITLE: CONCERNING THE ASSET TEST FOR DETERMINING ELIGIBILITY FOR CHILDREN UNDER THE MEDICAL ASSISTANCE PROGRAM, AND MAKING AN APPROPRIATION THEREFOR.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues
State Expenditures General Fund Cash Fund Exempt Federal Fund	$ 570,373 363,017 1,051,250	$ 1,046,369 741,100 1,910,651
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None.
Effective Date: July 1, 1999
Appropriation Summary for FY 1999-2000: Department of Health Care Policy and Financing $ 1,621,623Total 570,373General Fund 1,051,250Federal Funds Department of Public Health and Environment $ 24,022Cash Funds Exempt Transfer from DHCPF Department of Human Services $ 338,995Total 305,993Cash Funds Exempt Transfer from DHCPF 33,002Cash Funds Exempt Local Funds
Local Government Impact: The 20 percent county share for determining Medicaid eligibility and providing case management services is $33,002 in FY 1999-00 and 5.3 FTE; and $76,278 in FY 2000-01 and 11.6 FTE. The FTE required in the bill are county staff and are identified for informational purposes only.

The reengrossed bill requires that no resource standard for determining Medicaid eligibility shall be applied to children in the Baby Care Kids Care Programs and to children who meet the income requirements of the state's Aid to Families with Dependent Children Program pursuant to rules in effect on July 16, 1996. The bill requires the necessary appropriation clauses.

Additional moneys will be required in the Departments of Health Care Policy and Financing(DHCPF), Public Health and Environment (DPHE), and Human Services (DHS) to implement the bill's requirements.

DHCPF — will require a total of $1,621,623 in FY 1999-00. Approximately 167 children per month will be Medicaid eligible at an annual cost of $1,145.87 per child, or $1,241,607 for Medicaid premiums. The average annual caseload increase for FY 1999-00 is anticipated to be 1,084 children.

An added $363,017 will be incurred in DPHE and DHS for their costs associated with the bill. All moneys, except county funds, are appropriated to DHCPF then transferred to the respective department. The department will also require a one-time appropriation of $50,000 for modifications to its Medicaid Management Information System (MMIS).

DPHE — will require a total of $24,022 in FY 1999-00. DHCPF will require $22.17 per child for case management administration in the Early and Periodic Screening, Diagnosis, and Treatment Program (EPSDT). Moneys for EPSDT are appropriated to DHCPF then transferred to DPHE because it operates this outreach program for children.

DHS — will require a total of $338,995 in FY 1999-00. Additional county staff (5.3 FTE) are needed to conduct eligibility determinations and provide case management services for a projected caseload increase of 167 additional children per month. Personal services and operating expenses associated with the new county staff are estimated at $165,011. DHS will also require $157,712 for mental health services to eligible children through the Mental Health Medicaid Capitation Program. The monthly cost for services is $13.14 per month, or $157.68 annually. Moneys for mental health services are appropriated in DHCPF and transferred to DHS as cash funds exempt. DHS will also require a one-time appropriation of $16,272 for 226 hours of computer programming changes to its Client-Oriented Information Network (COIN) system (226 x $72/hour = $16,272). Moneys for DHS costs are appropriated in DHCPF, then transferred to DHS to fund its Medicaid eligibility determination functions.

FY 2000-01 Costs —$3,033,298 in total funding. Moneys will be needed in all three departments to reflect an annual caseload increase of 2,000 children. Funding will be needed for Medicaid premiums in DHCPF ($2,292,198); EPSDT ($44,349); DHS administration ($381,391); and DHS mental health services ($315,360).

The counties are responsible for 20 percent of the administrative costs to determine Medicaid eligibility and to provide case management services. The county share for FY 1999-00 is $33,002 and $76,278 in FY 2000-01.

The fiscal note indicates that for FY 1999-00, the Department of Health Care Policy and Financing should receive an appropriation for $1,621,623. Of this amount, $570,373 is General Fund and $1,051,250 is federal funds.

The Department of Public Health and Environment should receive an appropriation of $24,022. This amount is a cash funds exempt transfer from the Department of Health Care Policy and Financing.

The Department of Human Services should receive an appropriation of $338,995. Of this amount, $305,993 is a cash funds exempt transfer from the Department of Health Care Policy and Financing, and $33,002 is a cash funds exempt — local funds appropriation.