Developmental programs-cost based reimbursements.

08LSO-0154.C1

FISCAL NOTE

This bill contains an appropriation of $3,886,115 from the GENERAL FUND.

This bill contains an appropriation of $3,886,115 from the FEDERAL FUNDS.

Assumptions:

Pursuant to the new Federal Medicaid Waiver requirements and Select Committee recommendations on provider service rates, the Agency contracted with Navigant Consulting to determine standardized service rates based upon the cost of providing Medicaid Waiver services.  As a result of a cost based reimbursement system study, there is an increase in the proposed reimbursement rates paid to Providers of DD Medicaid Waiver Services to cover allowable provider costs.  Navigant Consulting compared the proposed cost based rates multiplied by the FY 2006 units of service and compared that total cost to the actual FY 2006 paid claims; the increase was $4,452,214 in additional annual cost.  This figure was increased by 10% to reflect the additional increase in rates paid to providers per legislation established in the 2006 and 2007 Legislative sessions of 7% and 3%, respectively.  Furthermore, this figure was increased by an additional 5.8% to reflect the net increase in individuals served between the end of FY 2006 and the end of FY 2009.  The increase in FY 2006 dollars is $4,452,214 times the FY 2007 and FY 2008 rate increase of 10% equals $4,897,435; times the net increase in individuals served of 5.8% equals an annual increase of $5,181,487.  For FY 2009 the annual increase is multiplied by 50%, due the gradual implementation for the first year, and equals $2,590,744.  Full implementation in FY 2010 and FY 2011 will be $5,181,487, respectively.  The Wyoming Federal match rate is 50%.

Prepared by:   Alex Kean, LSO     Phone: 777-7881

(Information provided by:Kevin Malm, Department of Health Phone:777-7618)