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LB 220: Change children’s eligibility to the Medical Assistance Act

As introduced: LB 220 seeks to simply and streamline the administration of the children’s medical assistance program by requiring the Department of Health and Human Services to apply for and utilize options allowed under Title XIX (Medicaid) and Title XXI (State Children’s Health Insurance Program, or SCHIP) to simplify enrollment and redetermination of eligiblity for children’s medical assistance.

LB 220 also requires the Department of Health and Human Services to reinstate 12-months continuous eligibility for children’s medical assistance.

Introducing Senator(s): Avery

Committee: Health and Human Services

Committee Hearing Date: February 20, 2013

Current Status: Not voted out of committee

Estimated Fiscal Impact: The additional expenditures for Medicaid expansion to 12-month continuous eligibility for children in Medicaid Program 348 are estimated at $48,951,600 ($22,028,220 General Fund, $26,923,380 Federal Funds) for partial year FY14, and $61,831,210 ($27,366,494 General Fund, $34,464,716 Federal Funds) for full year FY15. CHIP Program 344 expenditures are estimated at $12,445,836 ($3,920,438 General Fund, $8,525,398 Federal Funds) for partial year FY14, and $15,720,510 ($4,980,258 General Fund, $10,740,252 Federal Funds) for full year FY15. No expenditures for computer changes are anticipated for implementing 12-month continuous eligibility for children.

Administrative renewals will be implemented as required by the ACA on 1-1-14, so there will be no additional cost. Technology resources are fully committed to ACA implementation, so we will be unable to implement administrative renewals sooner than 1-1-14.

The other additional options currently available are presumptive eligibility for children, express lane eligibility, and premium assistance for private health insurance. If enrollment is increased by 10% as a result of these additional options, there would be an estimated 9,218 additional children served in FY14, and 14,035 additional children in FY15. Assuming implementation on 9-1-14, Medicaid Program 348 additional expenditures are estimated at $18,957,946 ($8,531,076 General Fund, $10,426,870 Federal Funds) for partial year FY14, and $35,417,492 ($16,029,957 General Fund, $19,387,535 Federal Funds) for full year FY15. For CHIP Program 344, additional expenditures are estimated at $6,463,283 ($2,035,934 General Fund, $4,427,349 Federal Funds) for partial year FY14, and $12,074,794 ($3,825,295 General Fund, $8,249,499 Federal Funds) for full year FY15.

Additional staff would be needed to serve the additional enrollees. Assuming the same implementation requirements and timeline as 12-month continuous eligibility, Administration Program 033 staff expenditures for 48 positions are estimated at $3,518,511 ($1,759,255 General Fund, $1,759,256 Federal Funds) for FY14, and $3,518,511 ($1,759,255 General Fund, $1,759,256 Federal Funds) for FY15.

Voices for Children’s Position: Support (see our testimony)

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