Expansion of Medicaid.

13LSO-0385.L4

FISCAL NOTE

This bill contains an appropriation of $156,700,000 from FEDERAL FUNDS to the Department of Health.

DETAIL OF APPROPRIATION

Agency #:  048     Agency Name:  Department of Health

Unit:  Health Care Financing

EXPENDITURE BY SERIES AND YEAR       FY 2013         FY 2014         FY 2015

0600  Grant & Aid Payments                          $42,100,000      $82,100,000

0900  Contractual Services Costs                     $2,000,000       $4,200,000

Total Expenditure Per Year:                         $44,100,000      $86,300,000

Grand Total Expenditure:          $130,400,000

Total Appropriated to Agency:     $156,700,000

Total Appropriated by Fund

FEDERAL FUNDS            :        $156,700,000

	FY 2014	FY 2015	FY 2016
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure (Decrease):
GENERAL FUND	(6,900,000)	(19,400,000)	0

Description of Appropriation and Source of Expenditure Decrease:

The federal funds appropriated to the agency will be used to expand Medicaid coverage to low-income individuals. The Department would fully offset the required General Fund Medicaid match by reducing other General Fund programs, resulting in an expenditure decrease for the State General Fund.

Assumptions: The cost of expansion and corresponding offset of required General Fund dollars are based on the best-estimate scenario (benefits and administration cost) from the Milliman study and the State General Fund offsets identified in the Department of Health Expansion analysis.  Federal funds will be available for FY 2014 and FY 2015 for 100% of Medicaid benefit costs and 50% of administration costs. The General Fund appropriation could decrease as shown if the full set of identified offsets is implemented.

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

(Information provided by: Jesse Springer, Dept. of Health Phone: 777-8048)