Colorado Legislative Council Staff

STATE

FISCAL IMPACT

TITLE:            CONCERNING ELIGIBILITY FOR THE COLORADO OLD AGE PENSION.

Summary of Legislation

            The bill requires that an applicant for Old Age Pension (OAP) benefits must be a resident of the state for at least one year immediately preceding application for OAP. Additionally, the bill provides that the requirement will ensure that applicants meet eligibility critera and that agencies administering OAP funds have sufficient time to process applications.

            Consistent with federal welfare reform law, the bill provides that aliens who are not "qualified aliens" and immigrants who are not "legal immigrants" are ineligible for OAP benefits.

State Expenditures

            Both savings and costs will be incurred under the bill in the Department of Human Services (DHS) and the Department of Health Care Policy and Financing (DHCPF). The net impact of the bill is $204,868 in savings in FY 1999-00 and $272,519 in savings in FY 2000-01. Table 1 below, illustrates both savings and costs under the bill.

            Department of Human Services. FY 1999-00 savings in OAP benefit payments are estimated at $101,147. These savings reflect 12 new persons monthly (55 case processing months) who will be ineligible for OAP benefits under the bill. For FY 2000-01, savings in OAP benefit payments are estimated at $149,941.

            Department of Health Care Policy and Financing. The bill will result in $103,720 net savings in FY 1999-00, and $122,579 in FY 2000-01.

            OAP State Medical Program savings are estimated at $183,091 in FY 1999-00. Using DHS data, an estimated 66 clients annually will be ineligible to receive services through the OAP State Medical Program under the bill. Costs in the Colorado Indigent Care Program (CICP) are estimated at $79,371 because clients ineligible for OAP medical services will receive medical services through CICP. For FY 2000-01, savings in the OAP State Medical Program are estimated at $216,381, and costs in CICP are estimated at $93,802.

Table 1: Itemization of Costs Under HB 99-1255

NOTE: The caseload data used in the fiscal note is from a report prepared by the Graduate School of Public Affairs, University of Colorado at Denver in collaboration with its Centers and the Norwest Public Policy Research Program — “Old Age Pension Recipients” (February 1, 1997).

State Appropriations

            The fiscal note indicates that for FY 1999-00, the Department of Human Services should receive an appropriation that reduces the Old Age Pension Program by $101,147 OAP cash funds.

            The Department of Health Care Policy and Financing should receive an appropriation which reduces spending by $103,720 in FY 1999-00. The appropriation clause should reflect the following:

            •   OAP State Medical Program — $183,091 General Fund reduction; and

            •   CICP —$79,371 total appropriation comprised of $10,724 General Fund, $30,069 cash funds exempt, and $38,578 federal funds. The source of the cash funds exempt is certified public funds which represent expenditures incurred by Denver Health and the University Hospital which are eligible for federal financial participation under Medicaid Disproportionate Share Payments to Hospitals.

Departments Contacted

            Human Services

            Health Care Policy and Financing