LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 187 SLS 24RS 474
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 2, 2024 5:48 PM Author: BOUDREAUX
Dept./Agy.: LDH/Medicaid
Subject: Pilot program Analyst: Shawn Hotstream
MEDICAID EN INCREASE GF EX See Note Page 1 of 1
Creates a pilot program for Medicaid recipients to utilize portable oxygen concentrators. (8/1/24)
Proposed law requires the Louisiana Department of Health (LDH) to establish a pilot program to provide Medicaid coverage
for portable oxygen concentrators in the same manner as stationary oxygen systems if a portable oxygen concentrator is
prescribed by a licensed physician and the enrollee is mobile within the home or community. LDH may limit the number of
portable concentrators covered each fiscal year in a manner determined through administrative rules. Proposed law provides
for reporting requirements of the department relative to portable oxygen concentrator utilization.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. INCREASE INCREASE INCREASE INCREASE INCREASE
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds INCREASE INCREASE INCREASE INCREASE INCREASE
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
Providing coverage for portable oxygen concentrators for certain Medicaid enrollees is anticipated to result in an
indeterminable increase in Medicaid expenditures in FY 25 and future fiscal years. The number of portable concentrators that
will be provided annually will be determined through administrative rules implemented by the department upon passage of
this bill. To the extent LDH keeps the current eligibility criteria in place (thus limiting additional coverage), there will be no
fiscal impact. However, expanding coverage will result in additional Medicaid expenditures. As an illustrative example, to the
extent all the projected number of individuals eligible utilize the portable concentrators, Medicaid expenditures will increase
by approximately $2.7 M, increasing by 3% annually in future years. This estimate is based on the following assumptions:
1). 5,417 estimated of eligible beneficiaries (from 2023)
2). Monthly rental costs of $40.35 for a portable oxygen concentrator, $484.20 annual cost
3). Costs assume 100% of qualifying beneficiaries will utilize, excludes bedridden recipients
4). Utilization will remain constant
5). 3% medical inflation rate annually
6). Assumes stationary tank remains with individual
REVENUE EXPLANATION
There is no anticipated direct material effect on governmental revenues as a result of this measure.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer