Child placement orders.

13LSO-0164.C3

FISCAL NOTE

	FY 2014	FY 2015	FY 2016
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Increase (Decrease):
FEDERAL FUNDS	2,900,000	2,900,000	2,900,000
GENERAL FUND	(2,900,000)	(2,900,000)	(2,900,000)

Source of Revenue Increase (Decrease):

Increase in federal Medicaid dollars used to pay for medically-necessary psychiatric residential treatment services for children and juveniles.

Assumptions:

Currently, the Wyoming Department of Health (WDH) through the state Medicaid program is forgoing approximately $2,900,000 in federal Medicaid matching funds for children/juveniles placed in psychiatric residential treatment facilities due to improperly worded court placement orders.  The proposed bill allows the state the ability to obtain federal funds for the program and actual program expenditures will not increase.

These placements are determined by a child's multi-disciplinary team (MDT) as "medically-necessary" placements for required services.  When a court requires the child's placement at a specifically-named facility, the federal Medicaid program defines these placements as criminal justice placements and will not share the cost for these placements and services, currently paid by 100% GENERAL FUNDS.  With properly worded placement orders to correspond with MDT-determined medically-necessary services, but not name specific facilities, the WDH may pursue the 50% federal medical assistance percentage (FMAP) reimbursement as allowed by Medicaid for these placements and services. 

Prepared by:    Michael Swank, LSO                   Phone:     777-7881

(Information provided by Paul Yaksic, Wyoming Department of Family Services, 777-5474; Sara Walk and Matt Hager, Wyoming Department of Health, 777-7257/6099)