FISCAL NOTE
Date Requested: February 08, 2019
Time Requested: 09:00 AM |
| Agency: |
Health and Human Resources, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2823 |
Introduced |
SB546 |
|
|---|
| CBD Subject: |
Health, Taxation |
|---|
|
FUND(S):
5090 - MEDICAID STATE SHARE FUND
Sources of Revenue:
Special Fund
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to impose a contingent tax increase on eligible acute care hospitals to maximize federal funding in order to increase practitioner payment fee schedules for practitioners employed by eligible acute care hospitals and health systems.
The anticipated tax collections for FY20-21 are $4,284,000 and $4,369,680 respectively. The Bureau for Medical Services will match these revenues with federal matching funds; the total estimated revenue available for the FY20-FY21,including state and federal funding, is $19,975,864 and $20,287,967 respectively. Providers rates will increase accordingly.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2019
Increase/Decrease
(use"-") |
2020
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
19,975,864 |
20,287,967 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
19,975,864 |
20,287,967 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
19,975,864 |
20,287,967 |
Explanation of above estimates (including long-range effect):
he West Virginia Hospital Association (WVHA) provided eligible acute care practitioner revenue estimates for FY2019 at $3.2 billion. The anticipated tax collections, at the proposed 0.13% of revenues, for FY2020 and FY2021 are $4,284,000 and $4,369,680 respectively. For the purposes of this fiscal note it is assumed that there will be an approximate growth in revenues of 2% each fiscal year. The Bureau for Medical Services will match these revenues with federal matching dollars from the Centers for Medicare and Medicaid (CMS). The total estimated revenue available for FY20-FY21, including state and federal funding, is $19,975,864, and $20,287,967 respectively. The Bureau for Medical Services will increase physician rates in accordance with the tax revenues collected.
Estimates may also vary depending on the populations served by hospitals. The Affordable Care Act (ACA) allows for an enhanced match for expansion members. For FY2020, West Virginia's blended Federal Medical Assistance Percentage (FMAP) for expansion is 91.50%. Beginning in FY2021 and beyond the FMAP for the expansion population will be 90%.
West Virginia's FMAP for the traditional Medicaid population for FY2020 is 74.790% respectively. The estimated blended FMAP for FY2021 is 74.290%.
Allocation of payments for FMAP are based on historical member enrollment and claims experience (Expansion = 46%, Traditional = 54%).
Memorandum
Person submitting Fiscal Note: Bill J. Crouch
Email Address: Bill.J.Crouch@wv.gov