LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 356 HLS 21RS 727
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 26, 2021 3:35 PM Author: BACALA
Dept./Agy.: LDH/Medicaid
Subject: Medicaid Analyst: Shawn Hotstream
MEDICAID OR INCREASE GF EX See Note Page 1 of 1
Requires regular evaluation of and reporting on Medicaid administration and services
Proposed law provides that the Louisiana Department of Health (LDH) regularly evaluate the state Medicaid program to identify efficiencies
in program administration and management. The department shall evaluate 1) all classes of services of the state Medicaid program
delivered through fee for service model and managed care, shall determine which classes of services should continue to be delivered
through each model, and which classes of services should be delivered through a different model than the one through which they are
currently delivered; 2) the cost-effectiveness, quality, and value of services provided by each Medicaid management information system
contractor of the department; 3) the integrity of data used in Medicaid managed care rate development; and 4) the set of covered services
offered through the state Medicaid program in comparison with the sets of covered services offered through the health plans of the Office
of Group Benefits, and the health plans of the two largest commercial health insurance plans for Louisiana enrolled residents. Proposed
law requires LDH to compare its covered services and cost sharing functions with those offered through Medicaid programs in each state
within CMS regions 4 and 6. Proposed law provides the secretary of LDH to submit to the legislature an annual report with findings under
this measure.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 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 2021-22 2022-23 2023-24 2024-25 2025-26 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
This measure is anticipated to result in additional professional services contract costs and staffing costs to the Louisiana
Department of Health associated with Medicaid program evaluations. Information provided by LDH indicates professional
services contract costs of $1.1 M in FY 22 for various Medicaid program evaluations required under this measure, and one
additional contract monitor position ($81,000) to monitor the contracts, as well as approximately $880,000 in recurring out-
year costs. The LFO can not corroborate the professional services contract estimates as the specific scope of work has not
been identified that will be contracted. However, it is assumed there will be costs associated with any evaluation process
that requires actuarial analysis or rate development (for example, whether the Medicaid program should offer benefits on a
fee for service basis or through managed care plan). To the extent any of the evaluation functions outlined in the bill can be
accomplished in-house with existing staff or the department realizes any efficiencies or savings as a result of this measure,
staffing and contract cost could be partially mitigated.
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}
Alan M. Boxberger
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} Staff Director