FISCAL NOTE
Date Requested: January 17, 2024
Time Requested: 08:17 AM |
| Agency: |
Human Services, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1100 |
Introduced |
HB4408 |
|
|---|
| CBD Subject: |
|
|---|
|
FUND(S):
0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND; 8722 - CONS FEDERAL FUNDS DIV HUMAN SERVICES GEN ADMN FD
Sources of Revenue:
Other Fund Federal
Legislation creates:
Creates New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to allow the development of a specialized intermediate care facility for individuals with intellectual and developmental disabilities.
The Department anticipates a fiscal impact of $9,380,000 (state portion = $6,142,961).
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
9,380,000 |
4,380,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
9,380,000 |
4,380,000 |
| 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):
The total cost to Bureau for Medical Services (BMS) for these 20 beds is $4,380,000 per year (20 beds x $600 per beneficiary per day x 365 = $4,380,000 x 26.095% = $1,142,961 (state) + $3,237,039 (fed)). The Department's BMS will pay an all-inclusive per diem rate, representing an inclusive payment for all services and items that are required to be provided by the Intermediate Care Facility for Individuals with an Intellectual Disability (ICF/IID).
If the intent is for the Department to be tasked with initial building and development or start up for such a facility, those start-up costs could fall within the 3 - 5 million dollar price range. This estimate is based on recent grants provided for program start up of behavioral health programs. This expense may not be required but it is believed any external providers would need to know the billing rates and be able to recoup those amounts in profit prior to committing any large amounts of capital investments. The program could require substantial funding in addition to the 3 - 5 million start-up to sustain operations while the State Plan Amendment is processed.
The Department believes the requirement to develop and submit a legislative rule laying out specific policies to carry out the bill can be accomplished with current internal staffing and collaboration with Department partners.
Depending on subsequent program development, the Department's Bureau for Behavioral Health (BBH) and Bureau for Medical Services (BMS) may need to hire a new staff person to provide administrative oversight for programming and to meet and coordinate with stakeholders.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Cynthia A. Persily, Cabinet Secretary
Email Address: dhhrbudgetoffice@wv.gov