Date Requested: February 10, 2016
Time Requested: 10:27 AM
Agency: Health and Human Resources, Department of
CBD Number: Version: Bill Number: Resolution Number:
1914 Introduced SB375
CBD Subject: Health


0525 - Consolidated Medical Services Fund

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 establish a procedure for the involuntary treatment of persons suffering from alcohol and other drug abuse disorders. The bill protects the rights of patients. The bill establishes limits. The bill grants the Department of Health and Human Resources authority to administer programs and to issue licenses. The bill permits contracts between agencies and providers, requires reports, studies and evaluations. The bill prohibits the denial of treatment and protects confidentiality. The bill defines terms and grants rule-making authority. The proposed legislation is applicable to individuals involuntarily hospitalized for treatment for alcohol and other drug abuse disorders and as mandated by the bill, any petition filed shall be accompanied by a guarantee, signed by the petitioner or other person authorized, obligating that person to pay all costs for treatment of the respondent for alcohol and other drug abuse that is ordered by the court. As written, the Department could incur additional costs, but data is not available to project the potential impact. Due to the full capacity of the state-owned psychiatric facilities, for all new individuals who are involuntarily hospitalized at one of the state-owned psychiatric facilities as a result of this bill the Department will incur an $800 per individual/per day diversion cost. This could equate to in excess of $1M depending on the volume.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
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 proposed legislation does not mandate any new programs be added by the Department. Substance abuse is currently covered by Medicaid. It is possible that the involuntary hospitalization of individuals for alcohol and other drug abuse would increase the need for other services provided by the Department's Bureau for Medical Services (BMS) and Bureau for Behavioral Health and Health Facilities (BHHF), however the Department does not have reliable data or a reliable methodology to determine how many individuals would be subject to involutary hospitalization nor the potential increase in utilization that would be experienced, if any. Additionally, if the proposed legislation is enacted theDepartment may experience increased administrative costs associated with the requirements of sections 27-8-11 and 27-8-12 which require statistical reporting and evaluation studies respectively. These studies may need to be incorporated into Medicaid provider enrollment and/or policy manuals, but this cost is anticipated to be minimal. There may be costs associated with conducting the evaluation or effectiveness study, which could also increase administrative costs and may be more significant depending on the type of study, if performed in-house or by a contracted vendor, etc.

    Person submitting Fiscal Note: Karen L. Bowling
    Email Address: