LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 557 HLS 22RS 741
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 1, 2022 12:05 PM Author: WILLARD
Dept./Agy.: Medicaid
Subject: Mandates Up to a 6-Month Contraceptive Supply Analyst: Patrice Thomas
INSURANCE/HEALTH EN -$17,771 GF EX See Note Page 1 of 1
Provides relative to the dispensing of contraceptives
Proposed law defines "contraceptive drugs". Proposed law requires the LA Medicaid program to issued or renewed on or after January 1,
2023, to cover up to a 6-month supply of contraceptive drugs to reimburse for a 6-month supply of contraceptive drugs, with an option to
receive the contraceptives onsite at a health provider's office. Proposed law requires the insured to have used the same contraceptive
drugs for at least consecutive 6 months before receiving a 6-month supply. Proposed law does not apply to any drug, medicine, or other
substance prescribed, dispensed, or distributed that is intended to induce an abortion.
EXPENDITURES 2022-23 2023-24 2024-25 2025-26 2026-27 5 -YEAR TOTAL
State Gen. Fd. ($17,771) ($35,541) ($35,541) ($35,541) ($35,541) ($159,935)
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other ($8,452) ($16,905) ($16,905) ($16,905) ($16,905) ($76,072)
Federal Funds ($134,217) ($268,434) ($268,434) ($268,434) ($268,434) ($1,207,953)
Local Funds $0 $0 $0 $0 $0 $0
Annual Total ($160,440) ($320,880) ($320,880) ($320,880) ($320,880) ($1,443,960)
REVENUES 2022-23 2023-24 2024-25 2025-26 2026-27 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 DECREASE DECREASE DECREASE DECREASE DECREASE
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
Proposed law will decrease expenditures within LA Department of Health (LDH), Medicaid Program associated with issuing contraceptives
drugs in 6-month supply.
LA Department of Health (SGF, Statutory Dedication, and Federal Impact)
Proposed law decreases expenditures within the LA Department of Health (LDH), Medicaid Program. The proposed law requires the
Medicaid Program to cover a 6-month supply of contraceptive drugs and allow patients to receive the contraceptives onsite at a health
provider's office. Currently, the average dispensing fee is $4.83 for managed care organization (MCO) providers and $10.90 for fee-for-
service (FFS) providers. Under this measure, LDH anticipates a decrease in pharmacy dispensing fees associated with contraceptives from
once every month to once every 6 months as follows:
Average Member 6-Month Contraceptive Monthly Dispensing Annual Dispensing
Dispensing Fee Claims per Month Fee Savings Fee Savings
MCO Providers $4.83 6,360 $30,736 $307,360
FFS Providers $10.90 124 $1,352 $13,516
$32,088 $320,880
Note: Since the proposed law is effective January 1, 2023, decrease of $160,440 in FY 23 represents expenditures for 6 months. In FY 24,
savings of $320,880 is estimated ($35,541 SGF, $16,905 statutorily dedicated Medical Assistance Trust Fund, and $268,434 Federal).
REVENUE EXPLANATION
To the extent proposed law decreases total Medicaid expenditures, federal financial participation will decrease (federal match rate).
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
13.5.2 >= $500,000 Annual Tax or Fee Evan Brasseaux
6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Interim Deputy Fiscal Officer