2004 Legislation
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SENATE BILL NO. 1429 – Approp, H&W, Medical Assistance

SENATE BILL NO. 1429

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Bill Status



S1429............................................................by FINANCE
APPROPRIATIONS - DEPARTMENT OF HEALTH AND WELFARE - MEDICAL ASSISTANCE
SERVICES - Appropriates $1,051,401,100 to the Department of Health and
Welfare for Medical Assistance Services for fiscal year 2005; reduces the
fiscal year 2004 appropriation to the Department of Health and Welfare for
Medical Assistance Services; authorizes the State Controller to make
transfers to the Cooperative Welfare Fund; reappropriates unexpended and
unencumbered fund balances of the Cooperative Welfare Fund; authorizes
expenditure of all receipts collected as noncognizable funds; expresses
legislative intent with regard to managing growth in the children's health
insurance programs; requires the Department of Health and Welfare to file a
report on the status of Medicaid; and expresses intent with regard to a
Medicaid Buy-in Program.
                                                                        
03/02    Senate intro - 1st rdg - to printing
03/03    Rpt prt - to Fin
    Rpt out - rec d/p - to 2nd rdg
03/04    2nd rdg - to 3rd rdg
03/08    Ret'd to Fin

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                Second Regular Session - 2004
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1429
                                                                        
                                    BY FINANCE COMMITTEE
                                                                        
  1                                        AN ACT
  2    APPROPRIATING MONEYS TO THE DEPARTMENT  OF  HEALTH  AND  WELFARE  FOR  MEDICAL
  3        ASSISTANCE  SERVICES  FOR  FISCAL YEAR 2005; REDUCING THE APPROPRIATION TO
  4        THE DEPARTMENT OF HEALTH AND WELFARE FOR MEDICAL ASSISTANCE  SERVICES  FOR
  5        FISCAL YEAR 2004; PROVIDING THAT THE STATE CONTROLLER SHALL MAKE TRANSFERS
  6        FROM THE GENERAL FUND; REAPPROPRIATING CERTAIN UNEXPENDED AND UNENCUMBERED
  7        BALANCES OF MONEYS; AUTHORIZING THE EXPENDITURE OF ALL RECEIPTS COLLECTED;
  8        EXPRESSING  LEGISLATIVE  INTENT  WITH  REGARD  TO  MANAGING  GROWTH IN THE
  9        CHILDREN'S HEALTH INSURANCE PROGRAMS; REQUIRING THE DEPARTMENT  OF  HEALTH
 10        AND  WELFARE TO FILE A WRITTEN REPORT ON THE STATUS OF MEDICAID IN JANUARY
 11        2005; EXPRESSING LEGISLATIVE INTENT WITH REGARD TO A MEDICAID BUY-IN  PRO-
 12        GRAM; AND DECLARING AN EMERGENCY FOR SECTION 2 OF THIS ACT.
                                                                        
 13    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 14        SECTION  1.  There  is hereby appropriated to the Department of Health and
 15    Welfare for Medical Assistance Services the following amounts to  be  expended
 16    according  to the designated expense classes from the various funds listed for
 17    the period July 1, 2004, through June 30, 2005:
 18                                                     FOR
 19                         FOR          FOR        TRUSTEE AND
 20                      PERSONNEL    OPERATING       BENEFIT
 21                        COSTS     EXPENDITURES     PAYMENTS          TOTAL
 22    MEDICAL ASSISTANCE SERVICES:
 23    FROM:
 24    General
 25     Fund            $ 5,453,700   $ 6,238,000   $  276,479,900 $  288,171,600
 26    Medical Assistance
 27     Fund                                                 2,500          2,500
 28    Liquor Control
 29     Fund                                               650,000        650,000
 30    CHIP Plan B and
 31     Access Card Fund     95,200       139,800        1,389,200      1,624,200
 32    Cooperative Welfare
 33     Fund
 34     (Federal)         9,703,800    14,236,600      675,301,000    699,241,400
 35    Cooperative Welfare
 36     Fund
 37     (Dedicated)                                     61,711,400     61,711,400
 38      TOTAL          $15,252,700   $20,614,400   $1,015,534,000 $1,051,401,100
                                                                        
 39        SECTION 2.  The appropriation to the Department of Health and Welfare  for
 40    Medical  Assistance  Services made in Section 1, Chapter 356, Laws of 2003, is
 41    hereby reduced by the following amounts according to  the  designated  expense
 42    class  from  the  listed  funds  for the period July 1, 2003, through June 30,
 43    2004:
                                                                        
                                           2
                                                                        
  1    FOR:
  2    Trustee and Benefit Payments                                       $57,526,400
  3    FROM:
  4    General Fund                                                       $15,000,000
  5    Cooperative Welfare Fund (Federal)                                  42,526,400
  6      TOTAL                                                            $57,526,400
                                                                        
  7        SECTION 3.  GENERAL FUND TRANSFERS. As appropriated, the State  Controller
  8    shall  make  transfers  from the General Fund to the Cooperative Welfare Fund,
  9    periodically, as requested by the director of the  Department  of  Health  and
 10    Welfare and approved by the Board of Examiners.
                                                                        
 11        SECTION  4.  REAPPROPRIATION  OF  THE  COOPERATIVE  WELFARE FUND. There is
 12    hereby reappropriated to the Department of Health and Welfare  any  unexpended
 13    and  unencumbered balances in the Cooperative Welfare Fund as appropriated for
 14    fiscal year 2004, to be used for nonrecurring expenditures only for the period
 15    July 1, 2004, through June 30, 2005. The reappropriation shall be computed  by
 16    the Department of Health and Welfare from available moneys.
                                                                        
 17        SECTION 5.  EXPENDITURES OF COLLECTED RECEIPTS. Notwithstanding the provi-
 18    sions  of Section 67-3516(2), Idaho Code, the Department of Health and Welfare
 19    is hereby authorized to expend all receipts collected as  noncognizable  funds
 20    for the period July 1, 2004, through June 30, 2005.
                                                                        
 21        SECTION  6.  CHILDREN'S  HEALTH  INSURANCE PROGRAMS. The Legislature finds
 22    that the Idaho Health Insurance Access Card Act of 2003 provides  the  innova-
 23    tive next step in promoting the availability of employer-sponsored or individ-
 24    ual  health plans with an emphasis towards partnering with the private sector.
 25    As envisioned, the new CHIP Plan B and Children's Access  Card  programs  will
 26    provide  needed  reform with no impact to the General Fund. In order to better
 27    manage growth in the children's health insurance programs, enrollment in  CHIP
 28    Plan  A  will be allowed to increase by no more than six percent (6%); enroll-
 29    ment in CHIP Plan B will be limited to one thousand (1,000) enrollees; and the
 30    Children's Access Card Program will be limited to the remaining available rev-
 31    enues as appropriated from the CHIP Plan B and Access Card Fund along with the
 32    associated federal match, for the period July 1, 2004, through June 30, 2005.
                                                                        
 33        SECTION 7.  MEDICAID REPORT. In order to keep the Legislature informed  on
 34    the  extent  to  which Medicaid has achieved cost savings through various cost
 35    reduction initiatives and to better ascertain the impact of its  policy  deci-
 36    sions,  the Department of Health and Welfare is hereby directed to provide the
 37    House and Senate germane committees and the Joint Finance-Appropriations  Com-
 38    mittee  with a comprehensive written report on the status of Medicaid in Janu-
 39    ary 2005. At a minimum, the  report  should  address  the  implementation  and
 40    issues  surrounding  the  children's health insurance programs. The Department
 41    should also report on the estimated cost savings  versus  actual  savings  for
 42    those  initiatives  identified  and  implemented such as managed care, disease
 43    management, and the First Choice Drug Program.
                                                                        
 44        SECTION 8.  MEDICAID BUY-IN. It is the intent  of  the  Idaho  Legislature
 45    that the Department of Health and Welfare begin the Medicaid Buy-In Program in
 46    fiscal  year  2005 with existing financial resources. Implementation should be
 47    based on budget neutrality.
                                                                        
 48        SECTION 9.  An emergency existing  therefor,  which  emergency  is  hereby
                                                                        
                                           3
                                                                        
  1    declared  to exist, Section 2 of this act shall be in full force and effect on
  2    and after its passage and approval.

Statement of Purpose / Fiscal Impact


Statement of Purpose
RS13396C1

This is the appropriation to the Department of Health and Welfare for the Medical Assistance Program (Medicaid) for fiscal year 2005. The bill appropriates a total of $1,051,401,100; provides that the State Controller shall make transfers from the General Fund; reappropriates certain unexpended and unencumbered balances of moneys; authorizes the expenditure of all receipts collected; expresses intent with regard to managing growth in the children’s health insurance programs; requires the Department to file a written report on the status of Medicaid in January 2005; and expresses intent with regard to a Medicaid Buy-In program. It also reduces the appropriation to the Department of Health and Welfare for Medical Assistance Services for fiscal year 2004.

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Fiscal Note
FTP  Gen  Ded  Fed  Total 


FY 2004 Original Appropriation 233.56  256,307,300  48,751,300  615,337,800  920,396,400 
Reappropriations 0.00  2,408,600  2,408,600 
Recissions 0.00  (15,000,000)  (42,526,400)  (57,526,400) 
Other Approp Adjustments 0.00 


FY 2004 Total Appropriation 233.56  241,307,300  51,159,900  572,811,400  865,278,600 
Non-Cognizable Funds and Transfers 17.94  (720,900)  6,634,200  98,623,500  104,536,800 


FY 2004 Estimated Expenditures 251.50  240,586,400  57,794,100  671,434,900  969,815,400 
Removal of One-Time Expenditures 0.00  (2,430,200)  (97,958,400)  (100,388,600) 
Base Adjustments 0.00  1,000,000  1,000,000 
Additional Base Adjustments 0.00  15,000,000  42,526,400  57,526,400 


FY 2005 Base 251.50  256,586,400  55,363,900  616,002,900  927,953,200 
Personnel Cost Rollups 0.00  126,200  214,800  341,000 
Inflationary Adjustments 0.00  10,182,600  24,434,500  34,617,100 
Replacement Items 0.00 
Nonstandard Adjustments 0.00  25,056,600  7,000,000  60,228,000  92,284,600 
Change in Employee Compensation 0.00  101,000  171,900  272,900 
Fund Shifts 0.00  42,400  (42,400) 


FY 2005 Program Maintenance 251.50  292,095,200  62,363,900  701,009,700  1,055,468,800 



Enhancements          
Medical Assistance Services          
 1. CHIP B Program Benefits 0.00  248,300  960,600  1,208,900 
 2. Children’s Access Card Benefits 0.00  1,140,900  4,413,200  5,554,100 
 3. CHIP B & Access Card Staffing 5.50  95,200  285,100  380,300 
 4. Medicaid Automation Project 0.00  110,200  139,800  2,250,000  2,500,000 
 5. Managed Care Savings 0.00  (1,886,100)  (4,524,900)  (6,411,000) 
 6. Disease Management Savings 0.00  (1,765,200)  (4,234,800)  (6,000,000) 
 7. First Choice Drug Savings 0.00  (382,500)  (917,500)  (1,300,000) 


FY 2005 Total 257.00  288,171,600  63,988,100  699,241,400  1,051,401,100 
Chg from FY 2004 Orig Approp 23.44  31,864,300  15,236,800  83,903,600  131,004,700 
% Chg from FY 2004 Orig Approp. 10.0%   12.4%   31.3%   13.6%   14.2%  

Contact: Dick Burns 334-4742

Legislative Services Office, Budget & Policy Analysis

Statement of Purpose/Fiscal Note Bill No. S1429