2003 BR1705/SB 167

February 20, 2003

Page 2

COMMONWEALTH OF KENTUCKY

STATE FISCAL NOTE STATEMENT

GENERAL ASSEMBLY / LEGISLATIVE RESEARCH COMMISSION
2003 REGULAR SESSION / 2002-2003 INTERIM

MEASURE

(X) 2003 BR No. / 1705 / (X) / Senate / Bill No. / 167
( ) Resolution No. / ( ) Amendment No.
SUBJECT/TITLE / An Act relating to Medicaid and declaring an emergency.
SPONSOR / Senator David Karem

NOTE SUMMARY

Fiscal Analysis: / X / Impact / No Impact / Indeterminable Impact
Level(s) of Impact: / State / Local / Federal
Budget Unit(s) Impact / Medicaid Services
Fund(s) Impact: / X / General / Road / X / Federal
X / Restricted Agency (Type) / (Other)

FISCAL SUMMARY

______

Fiscal Estimates / 2002-2003 / 2003-2004 / Future Annual
Rate of Change
Revenues (+/-)
Expenditures (+/-)
Net Effect / $113-$128 million

______

MEASURE'S PURPOSE: SB 167 requires the Cabinet for Health Services to use the criteria for qualifying individuals for nursing home level of care and the home and community based waiver programs that were in effect on January 1, 2003.

PROVISION/MECHANICS: SB 167 creates a new section of KRS 205.510 to 205.645 to require the Cabinet for Health Services to use the criteria for qualifying individuals for nursing home level of care and the home and community based waiver programs that were in effect on January 1, 2003

FISCAL EXPLANATION: The fiscal impact of SB 167 is estimated to total approximately $113.0 million ($34 million state funds) to $128.0 million ($38 million state funds) based on the cost containment measures announced in January 2003. The effect of the legislation would be to negate the following cost containment measures:

Cost Containment Measures / Estimated Amount
Exclude certain lower intensity needs at personal care level relating to the “Qualifying Level of Care Criteria for Nursing Facility and Home Community Based Services Waiver”. / $30.0 – 45.0 million
Reduce Special Income Standard for Institutionalized and Waiver Recipients to 275% of "Supplemental Security Income". / $20.0 million
Elimination of Exceptional Spend down as an Eligibility Category. / $35.0 million
Reduce Spousal Impoverishment Income and Resource Standards. / $20.0 million

Restructure Home and Community Based Services Waiver.

/ $8.0 million

Total Fiscal Impact – SB 167

/ $113.0 – 128.0 million
DATA SOURCE(S) / Cabinet for Health Services
NOTE NO. / 56 / PREPARER / Cindy Murray / REVIEW / DATE / 2/20/03

LRC 2003-BR1705/SB 167