Fiscal Note - State of Utah - 2013 General Session

HB0153 - Medicaid Amendments

State Government (UCA 36-12-13(2)(b)):
Enacting this bill could increase total costs for Medicaid by an estimated $245 million in FY�2014 and $521 million in FY�2015. By FY�2021 the total cost increase could be around $700 million. In fiscal years FY�2014 through FY�2016, federal funding will cover these cost increases and reduce the State's share of costs. By FY�2021 the bill's General Fund cost could be an estimated $60 million. The bill deposits the General Fund cost share decrease of $4,549,200 in FY 2014 and $13,024,700 in FY 2015 and FY 2016 into the Medicaid Growth Reduction and Budget Stabilization Account. The bill would also reduce the Education Fund's cost share by $222,000 in FY 2014 and $444,000 ongoing beginning in FY 2015. Finally, the bill would reduce the cost share born by restricted funds by $1,219,600 in FY 2014 and $2,439,100 ongoing beginning in FY 2015.

State Budget Detail TableFY 2013FY 2014FY 2015
Federal Funds$0$246,749,400$523,972,800
Restricted Funds$0$4,549,200$13,024,700
   Total Revenue$0$251,298,600$536,997,500
General Fund$0($13,024,700)($13,024,700)
General Fund$0$4,549,200$13,024,700
General Fund, One-Time$0$8,475,500$0
Education Fund$0($444,000)($444,000)
Education Fund, One-Time$0$222,000$0
Federal Funds$0$246,749,400$523,972,800
Restricted Funds$0($1,219,600)($2,439,100)
   Total Expenditure$0$245,307,800$521,089,700
Net Impact, All Funds (Rev.-Exp.)$0$5,990,800$15,907,800
   Net Impact, General/Education Funds (Rev.-Exp.)$0$222,000$444,000

Local Governments (UCA 36-12-13(2)(c)):
Local government mental health and substance abuse services will be replaced for 10,600 individuals with full Medicaid coverage at a higher federal match rate which generates General Fund savings of about $2,000,000 one-time in FY 2014 and $4,000,000 ongoing for FY 2015 and FY 2016. These savings then decline annually beginning in FY 2017 to about $2,800,000 by FY 2021. County governments will also see savings for newly eligible inmates for Medicaid to cover some inpatient hospital medical costs.

Direct Expenditures by Utah Residents and Businesses (UCA 36-12-13(2)(d)):
Medicaid spending will increase by up to $248.0 million for 131,500 individuals in FY 2014 and spending will increase to $732.4 million for 160,100 people by FY 2021.

Performance Note Required? (Joint Rule 4-2-404): Yes

2/27/2013, 1:37:24 PM, Lead Analyst: Frandsen, R./Attny: CJDOffice of the Legislative Fiscal Analyst