FISCAL NOTE
Date Requested: March 08, 2018
Time Requested: 10:00 AM |
| Agency: |
Health and Human Resources, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1695 |
Comm. Sub. |
HB4001 |
|
|---|
| CBD Subject: |
Human Services |
|---|
|
FUND(S):
0403 - DIV OF HUMAN SERVICES GENERAL ADMINISTRATION FUND, 8722 - CONS FEDERAL FUNDS DIV HUMAN SERVICES GEN ADMIN FD, 8816 - TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF), 8755 - FEDERAL BLOCK GRANT ENERGY ASSISTANCE FUND
Sources of Revenue:
Other Fund General and Federal
Legislation creates:
Increases Existing Expenses, Decreases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to set forth the eligibility and fraud requirements for public assistance. The bill defines terms. The bill requires the Department of Health and Human Resources to implement work requirements for applicants for the Supplemental Nutrition Assistance Program (SNAP). The bill requires discontinuance of a federal waiver. The bill sets forth what meets work requirements. The bill sets out exceptions to work requirements. The bill provides for good cause exception. The bill allows for a federal waiver. The bill provides for rulemaking for suspension of benefits for noncompliance. The bill provides for an asset test for SNAP benefits. The bill requires accessing information of various federal, state and miscellaneous sources. The bill prohibits payment of SNAP benefits in specified instances. The bill requires cooperation with the Bureau of Child Support Enforcement. The bill requires a design or establishment of a computerized income, asset and identity verification system for Temporary Assistance for Needy Families (TANF). The bill allows for contracting with a third-party vendor. The bill sets out required contract terms. The bill requires accessing information of various federal, state and miscellaneous sources for TANF. The bill requires identity authentication as a condition to receive public assistance. The bill sets forth notice requirements and right to a hearing. The bill requires referrals for fraud, misrepresentation and inadequate documentation. The bill requires a report to the Governor and the Legislature. The bill sets forth prohibitions on the use of an electronic benefit transfer card. The bill tracks out-of-state spending of SNAP and TANF benefits. The bill provides for rulemaking.
The Department estimates the cost related to this legislation to be approximately $1,500,000 ($463,312 in state funds and $1,036,688 in federal funds). This covers the annual cost of the Asset Verification system. The additional workload relating to verification for Able-Bodied Adults Without Dependents (ABAWD) would be absorbed by current Family Support Specialists. This, however, is contingent on automation of the Medicaid eligibility application. If this is not fully implemented, there could be need for additional Economic Service Workers.
With the implementation of the new Asset Verification system the Department estimates an overall savings of approximately $14 million annually for the Medicaid Program. The State's share of these savings is estimated to be approximately $2.9 million. Please note these are preliminary estimates based on general assumptions and should not be used for budgetary purposes at this time.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2018
Increase/Decrease
(use"-") |
2019
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
-12,486,212 |
-12,486,212 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
-12,486,212 |
-12,486,212 |
| 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):
To calculate the AVS transaction costs, either liquid asset verification or real property/insurance verification, can be used. The transactional rate is $2.50 per client. The clients would be tested once a year. Assuming that all clients receiving family assistance (600,000) would be tested, this would result in costs of $1,500,000 (600,000 X $2.50).
To calculate the savings from the AVS for the Medicaid portion, we used total costs for all categories including Expansion and excluding the Aged and Disabled which had previously been mandated. The total costs were $2,797,242,454 multiplied by the savings rate of 0.5% for a total savings of approximately $13,986,212. The states portion of this savings would be $2,922,530 (Total Expansion savings $4,422,928 X Expansion match rate 10% = $442,293 plus total other members savings of $9,563,284 X state blended match rate of 25.9% = $2,480,237).
Memorandum
The additional workload for Able Bodied Adults Without Dependents (ABAWD) verification would be absorbed by Family Support Specialists. This, however, is contingent on automation of the Medicaid eligibility application. If this is not fully implemented, there could be need for additional Economic Service Workers.
The requirements to track out-of-state ebt card spending, case reviews and reporting to Governor and Legislature will add additional costs. However, these costs cannot be quantified at this date and are expected to be minimal.
In relation to ebt card spending, currently certain codes identify types of providers. If this would need updated to provide for added types, additional programming costs would be required. This cost is not yet known. To implement restrictions for certain establishments would require negotiation between an entity and ATM/POS vendors they may be utilizing. Cash assistance benefits can be accessed through ATM or cash back at purchase, therefore placing restrictions on specific items causes additional cost to Department, retailers, clients, but does not limit the use of the funds.
As currently written there are no ramifications for retailers failing to comply with law.
Regarding identification of misuse of the card, there exists currently an integrity tool that could accomplish this. This tool is provided by the current vendor at no cost for 12 months. An estimate of this cost beyond that is $96,000 annually. In addition, the federal government must approve any restrictions or punitive actions to the recipient.
Person submitting Fiscal Note: Bill J. Crouch
Email Address: dhhrbudgetoffice@wv.gov