Fiscal Note 1999 Session
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1 Fiscal Note 1999 Session Bill #: S3157-1A (R) Complete Date: 03/21/00 Title: EMPLOYER SUBSIDIZED HEALTH INS PRGM Fiscal Impact Yes No State Local Fee/Departmental Earnings Tax Revenue Agency Name: Human Services Dept This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only. Dollars (in thousands) FY99 FY00 FY01 FY02 FY03 Expenditures Health Care Access Fund ,018 Less Agency Can Absorb - No Impact - Net Expenditures Health Care Access Fund ,018 Revenues Health Care Access Fund Net Cost <Savings> Health Care Access Fund Total Cost <Savings> to the State FY99 FY00 FY01 FY02 FY03 Full Time Equivalents Health Care Access Fund Total FTE S3157-1A (R) Page 1 of 5
2 Narrative: SF A Bill Description: This bill would establish a special program to subsidize the employee s share of an employer s subsidized health insurance premium for children in families with income between 150% and 200% of FPG who have Employer Subsidized Insurance available to them but are currently not taking advantage of it. The Following author s amendments are assumed. 1. Effective date July Four months without health coverage requirement restored 3. Cost effectiveness of subsidy based on $150 per month per child. ADMINISTRATIVE COSTS (IN 000 S) FY 01 FY 02 FY 03 FTE S Printing/Postage MMIS TOTAL ADMIN % CAP AMOUNT OF MATCH ALLOWED AT 66% AMOUNT OF MATCH ALLOWED AT 44% REVENUE AT 44% REVENUE AT 66% Assumptions: TOTAL REVENUE Expenditures and/or Revenue Formula: Long-Term Fiscal Consideration: Local Government Costs References/Sources Minnesota S3157-1A (R) Page 2 of 5
3 MINNESOTACARE Fiscal Analysis of a Proposal to To Subsidize the Employee s Share of Employer Subsidized Health Insurance Premiums for Children in Families with Income Between 150% and 200% FPG SF A Assumes author s amendments making the following changes: 1. Effective date July 2001; 2. Four months without health coverage requirement restored; 3. Cost effectiveness of subsidy based on $150 per month per child. This bill establishes a program to subsidize the employee s share of an employer s subsidized health insurance premium for children in families with income between 150% and 200% FPG who have Employer Subsidized Insurance (ESI) available to them but are currently not taking advantage of it. The program would subsidize an employer s health plan if it is deemed to be cost effective by the commissioner of DHS. This fiscal note defines cost effective to be equal to a monthly cost of coverage of $150 per child. (The definition will require HCFA approval.) Children participating in this special program would pay a monthly premium equal to one-half the MinnesotaCare premium they would pay if they were enrolled in MinnesotaCare itself. For those enrolled, the full employee s share of the cost of the dependent coverage-only would be subsidized by this special program without consideration of whether any adults may be covered under the definition of a dependent under this coverage as well. This proposal would also wrap-around Medical Assistance services to the extent not covered by the employer health plan and pay for all co-payments associated with a cost-effective employer health plan. These services would be obtained from MA providers and reimbursed at the usual Medical Assistance rates. The federal share of the costs of this special program is assumed to be at the CHIP enhanced rate. S3157-1A (R) Page 3 of 5
4 FAMILIES WITH CHILDREN FY 2001 FY 2002 FY 2003 Number of children currently not enrolled in an ESI plan who would enroll in this program ,521 Avg. monthly subsidy cost per child $33.60 $36.11 $38.81 Avg. monthly cost of MA wrap-around $26.95 $28.96 $31.13 Avg. monthly revenue $21.82 $22.92 $24.06 Total payments 0 728,983 2,115,811 Federal share 0 479,525 1,391,781 State share 0 249, ,031 Total revenue 0 256, ,857 Federal share 0 168, ,784 State share 0 87, ,073 Net cost 0 472,243 1,387,955 Federal share 0 310, ,996 State share 0 161, ,958 Total Net Cost to State $0 $161,602 $474,958 Administrative Cost FY 2001 FY 2002 FY 2003 Number of eligibles ,521 Number of approvals 0 1,986 1,637 Cases approved Number of applicants 0 3,973 3,275 Number of cases applying 0 2,310 1,904 FTE for applications Average continuing eligibles ,521 Average continuing cases ,466 FTE for continuing cases Total MnCare FTE Combined Total MnCare FTE Policy Development Benefit Recovery Unit Training - Elig Policy Financial Mgmt (Auditing & Federal Accounting) Total Admin Staff Total staff Direct staff cost $350,000 $339,788 $423,651 Indirect staff cost $196,000 $79,939 $103,900 Total staff cost $546,000 $419,728 $527,552 Printing and postage $0 $10,186 $14,506 Total Admin Cost $546,000 $429,914 $542,057 S3157-1A (R) Page 4 of 5
5 Agency Contact Name: Ron Hook (651) FN Coord Signature: STEVE BARTA Date: 03/20/00 Phone: EBO Comments I have reviewed this Fiscal Note for accuracy and content. EBO Signature: DENNIS MUNKWITZ Date: 03/21/00 Phone: S3157-1A (R) Page 5 of 5
X Bill #: S3322-1A Complete Date: 04/05/06. X Chief Author: BERGLIN, LINDA. X Title: REVERSE MORTGAGE INCENTIVE PROGRAM Tax Revenue X
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