FISCAL NOTE
Date Requested: February 10, 2020
Time Requested: 04:12 PM |
| Agency: |
Health and Human Resources, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2761 |
Comm. Sub. |
SB648 |
|
|---|
| CBD Subject: |
Health |
|---|
|
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 to expand the Medicaid program to include dental coverage for adult recipients, to establish an amount of coverage available, to identify the responsible state department and to provide emergency rule-making authority.
The Department estimates a cost of $62,747,000 ($8,810,755 state dollars) related to this legislation. The proposed legislation would provide a $1,000 annual maximum dental benefit for adult Medicaid members (currently adults receive only emergency dental services). The analysis assumes a 20% service utilization and excludes current emergency dental costs (approximately $11M) as part of the $1,000 annual benefit.
A 50% service utilization rate would change the estimated costs to $156,866,500 ($22,025,888 state dollars).
The Department's Bureau for Public Health's State Oral Health Program (OHP) currently administers the Donated Dental Project and Pre-Employment Dental Program for adults that includes providing low-cost dentures and partials to eligible adults. There is potential for minimal savings to this program relating to Medicaid recipients receiving preventive dental.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2020
Increase/Decrease
(use"-") |
2021
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
62,747,000 |
62,747,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
62,747,000 |
62,747,000 |
| 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):
Historical costs and utilization data of adult dental services are not available since preventive dental benefits for adults have historically not been covered. The estimates have been developed assuming $1,000 per adult Medicaid member; no trending was applied to individual service costs and no managed care savings factor was included. The estimates are based on a 20% utilization rate of 313,733 residents (62,747 x 1,000); actual utilization may be more and would result in higher estimated costs.
Memorandum
This change would require Center for Medicare and Medicaid Services (CMS) approval and a State Plan Amendment (SPA). Costs presented above assume a full 12 months of utilization by all adult members.
Person submitting Fiscal Note: Bill J. Crouch
Email Address: dhhrbudgetoffice@wv.gov