FISCAL NOTE

Date Requested: March 18, 2021
Time Requested: 09:07 AM
Agency: Health and Human Resources, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
1156 Introduced HB2266
CBD Subject: Insurance


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 Federal

Legislation creates:

Increases Existing Expenses



Fiscal Note Summary


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


The purpose of this bill is provide Medicaid coverage up to 1 year postpartum. Through the Department's Office of Maternal Child & Family Health’s (OMCFH) Right from the Start (RFTS) program, community-based registered nurses and licensed social workers may provide care coordination services (targeted case management from Medicaid’s perspective) and health education to Medicaid-eligible pregnant women through 60 days postpartum. This bill would sanction RFTS postpartum services for 1 year. Currently, RFTS Designated Care Coordinators submit invoices to Medicaid’s fiscal agent for payment of RFTS services provided to Medicaid-eligible women. Total estimated cost to cover approximately 357 additional members is $1,364,990 in FY22 ($1,062,747 federal funds and $302,243 state funds), $1,378,639 in future years ($1,029,568 federal funds and $349,071 state funds).



Fiscal Note Detail


Effect of Proposal Fiscal Year
2021
Increase/Decrease
(use"-")
2022
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 1,364,990 1,378,639
Personal Services 0 0 0
Current Expenses 0 1,364,990 1,378,639
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):


Pregnant women have been covered under by Medicaid under the Public Health Emergency (PHE), Maintenance of Effort (MOE) requirement for FY2021. The MOE provides continuous coverage for Medicaid enrollees through the end of the PHE. The Biden Administration has indicated that the PHE could realistically extend through December 31, 2021. The American Rescue Plan, passed on March 11, 2021, provides states in both Medicaid and CHIP the option to provide full benefits to pregnant and postpartum women during pregnancy and for one year postpartum. States choosing to use this option in Medicaid must also make the option available for pregnant and postpartum women covered under CHIP. The option becomes available on the first day of the first fiscal quarter one year after enactment of the statute. It is available for five years after that date. The projected costs are based upon an estimated additional 357 members, for an additional 10 months of coverage at the per member per month rate of $382.35. For FY 22, total estimated costs are $1,364,990 (includes federal costs of $1,062,747 and $302,243 in state costs). The FMAP for FY22 is 77.8575%, including the 6.2% FMAP increase through December 2021 for the public health emergency. Assuming a 1% inflation, the projected cost for future year is $1,378,639 (includes federal costs of $1,029,568 and $349,071 in state costs). The FMAP for future year is 74.68%.



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: Bill J. Crouch
    Email Address: dhhrbudgetoffice@wv.gov