Fiscal Note - State of Utah - 2014 General Session

SB0251 - Amendments to Medicaid and Health Care

State Government (UCA 36-12-13(2)(b)):
If a federal waiver is received, this bill could increase total costs for Medicaid by an estimated $80 million in FY 2015 and $170 million in FY 2016. By FY 2021 the total cost increase could be around $300 million. In the first two fiscal years, federal funding will cover these cost increases and save the State General Fund $2,300,000 in FY 2015 and $5,100,000 in FY 2016. By FY 2021 the bill's General Fund cost could be an estimated $25 million. The bill could also reduce the Education Fund's cost share by $100,000 in FY 2015 and $200,000 ongoing beginning in FY 2015. Finally, the bill could reduce the cost share born by restricted funds by $250,000 in FY 2015 and $500,000 ongoing beginning in FY 2016.

State Budget Detail TableFY 2014FY 2015FY 2016
Federal Funds$0$81,300,000$177,500,000
   Total Revenue$0$81,300,000$177,500,000
General Fund, One-Time$0($2,300,000)($5,100,000)
General Fund Restricted$0($250,000)($500,000)
Education Fund$0($200,000)($200,000)
Education Fund, One-Time$0$100,000$0
Federal Funds$0$81,300,000$177,500,000
   Total Expenditure$0$78,650,000$171,700,000
Net Impact, All Funds (Rev.-Exp.)$0$2,650,000$5,800,000
   Net Impact, General/Education Funds (Rev.-Exp.)$0$2,400,000$5,300,000

Local Governments (UCA 36-12-13(2)(c)):
Local government mental health and substance abuse services could be replaced for 2,200 individuals with full Medicaid coverage at a higher federal match rate which generates General Fund savings of about $400,000 one-time in FY 2015 and $800,000 for FY 2016. These savings then could decline annually beginning in FY 2017 to about $500,000 by FY 2021. County governments could 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)):
If a federal waiver is received, then Medicaid spending could increase by up to $85 million for 59,800 individuals in FY 2015 and spending could increase to $300 million for 70,300 people by FY 2021.

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

3/4/2014, 9:20:10 AM, Lead Analyst: Frandsen, R./Attny: CJDOffice of the Legislative Fiscal Analyst