Child health insurance program amendments-2.

06LSO-0388.C1

CORRECTED COPY

FISCAL NOTE

This bill contains an appropriation of $1,815,000 from the GENERAL FUND.

This bill contains an appropriation of $3,685,000 from the FEDERAL FUNDS.

This bill contains an authorization of 3 Full-Time positions.

	FY 2007	FY 2008	FY 2009
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure Increase:
FEDERAL FUNDS	277,244	1,981,703	3,851,833
GENERAL FUND	138,913	992,933	1,929,963

Source of Expenditure Increase:

The passage of this bill will require the Children's Health Insurance Program (Kid Care CHIP) to implement and run a program for parents of the children enrolled in Kid Care CHIP or EqualityCare [Medicaid].  This expenditure is for case services, which is the cost of the payment of premiums to insurance companies or payment to employers for a portion of the parent's insurance premium.

Assumptions:

Case service expenditures in the 2007/2008 biennium will be less than what the expenditures will be in the 2009/2010 biennium due to the incremental enrollment of parents and the implementation of the new program.  It is estimated that approximately 2,408 of the estimated 3,720 parents will enroll in the 2007/2008 biennium.  Case service expenditures for SFY 2009 are estimated to be higher than the expenditures will be in the 2007/2008 biennium, as the program enrollment continues to increase and is eventually capped at 3,720.  The expenditures do not include any individual contributions from parents towards the premium.  Federal match rate of 66.62% was used in all calculations.

Prepared by:   Patricia Guzman, Dept. of Health Phone:  777-6228

(continued on next page)

This legislation will not have any administrative impact to the State Employee's Group Insurance.  Group Insurance staff does not anticipate any non-administrative impact to the Employee's Group Insurance but expects that individual agencies could be impacted due to employment of AWEC employees whose income levels meet CHIP guidelines.  This impact is indeterminable.  Impact would vary depending on whether the decision to provide CHIP contributions are made independently by each agency or by the state as a whole.

Prepared by:   Don Richards, LSO           Phone:  777-7881

(Information provided by Ralph Hayes, State Employee's Group Insurance; phone:  777-6835.)

NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill modifies the Department of Health budget and current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

Department of Health