FISCAL NOTE

Date Requested: February 17, 2016
Time Requested: 03:51 PM
Agency: Health and Human Resources, Department of
CBD Number: Version: Bill Number: Resolution Number:
2614 Introduced HB4591
CBD Subject: Human Services


FUND(S):

0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND, 8722 - CONS FEDERAL FUNDS DIV HUMAN SERVICES GEN ADMN FD

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The purpose of this bill is to prohibit the Department of Health and Human Services from discontinuing the bundled service funding and reimbursment system for residential treatment of at-risk children The manner by which the Department has been bundling rates has lacked accountability and could put the state Medicaid program at risk of liability from CMS auditors. Approximately $38M of the current bundle is Medicaid funding. Moving forward, providers will be able to bill for each service directly. In addition, targeted case management is now being expanded so that providers can bill for additional case management. Finally, the reforms taking place in the child welfare system are designed to realign the system to a more home and community based focus and away from out of home residential placements. Of note, WV removes more children from the home than any state in the country. WV also ranks 47th nationally in the number of children placed in congregate care settings. This new approach is being driven by evidence based policies from around the country. The Department is also facing a Department of Justice (DOJ) investigation regarding the claims that the state is systematically violating the civil rights of children.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2016
Increase/Decrease
(use"-")
2017
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 38,755,782 38,755,782
Personal Services 0 0 0
Current Expenses 0 38,755,782 38,755,782
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


Amount was determined by utilizing the total bed count for group residential and emergency shelter providers. Annualized costs of the treatment portion of the rate were backed out as providers will be billing individual codes instead of the bundle. There is not sufficient information to project the utilization of the individual codes. These calculations assume 100% occupancy.



Memorandum






    Person submitting Fiscal Note: Karen L. Bowling
    Email Address: dhhrbudgetoffice@wv.gov