05/08/2007 09:00 AM Senate FINANCE

9:43:02 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR SENATE BILL NO. 27(HES)                                                                                             
     "An  Act relating  to eligibility  requirements for  medical                                                               
     assistance  for certain  children, pregnant  women, disabled                                                               
     persons,  and  persons  in   medical  or  intermediate  care                                                               
     facilities; and providing for an effective date."                                                                          
                                                                                                                                
                                                                                                                                
This was the  second hearing for this bill in  the Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
9:43:17 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  moved  to  adopt CSSB  27  25-LS0211\E,  as  a                                                               
working document.                                                                                                               
                                                                                                                                
There was no objection, and Version  "E" was ADOPTED as a working                                                               
document.                                                                                                                       
                                                                                                                                
TOM OBERMEYER, Staff to Senator  Bettye Davis, informed that this                                                               
version of the bill would  change income eligibility requirements                                                               
for  individuals  nineteen years  of  age  and younger  from  200                                                               
percent  of the  federal poverty  level  to 175  percent of  that                                                               
level. It  would also revert the  income eligibility requirements                                                               
for  the elderly  to an  income level  not to  exceed $1,656  per                                                               
month,  rather  than 300  percent  of  the supplemental  security                                                               
income  benefit as  called for  in  the original  version of  the                                                               
bill. The  fiscal impact  of these changes  was explained  in the                                                               
new  fiscal   notes  and   summary  accompanying   the  committee                                                               
substitute. These changes in the  bill resulted in the Denali Kid                                                               
Care program  being the only program  listed as an impact  in the                                                               
bill  summary, at  a  cost  of $2,691,500.  He  assumed that  the                                                               
federal  contribution  of  $1,907,400 represented  a  70  percent                                                               
share.  The  changes were  designed  to  retain Denali  Kid  Care                                                               
coverage for  children who would  otherwise not qualify  for this                                                               
program.                                                                                                                        
                                                                                                                                
9:46:46 AM                                                                                                                    
                                                                                                                                
JANET  CLARKE,  Assistant  Commissioner, Finance  and  Management                                                               
Services, Department of Health and  Social Services informed that                                                               
the three fiscal notes related to  the bill were accompanied by a                                                               
summary.  The changes  made in  the current  version of  the bill                                                               
caused  a  significant  reduction   in  cost.  The  general  fund                                                               
expenditures in the  original bill totaled $4.6  million, and the                                                               
current version  had reduced that  number to less  than $800,000.                                                               
The total estimated  cost of the legislation  was $2,691,500 with                                                               
general fund  expenditures of $783,500.  Two of the  fiscal notes                                                               
related   to  the   Medicaid  program,   and  a   third  was   an                                                               
administrative fiscal note.                                                                                                     
                                                                                                                                
9:48:23 AM                                                                                                                    
                                                                                                                                
Senator  Thomas  observed that  the  fiscal  note indicated  that                                                               
approximately one  half of the  number of children  would receive                                                               
services  under this  version  of  the bill  as  compared to  the                                                               
original version.                                                                                                               
                                                                                                                                
Ms.  Clarke affirmed,  explaining  that  the current  eligibility                                                               
level  was  approximately  154 percent  of  the  federal  poverty                                                               
level, and  the current version  of the bill would  increase that                                                               
to  175  percent,  adding  an additional  1277  children  to  the                                                               
program. If the eligibility was  increased to 200 percent, as was                                                               
originally  proposed, the  increase in  children served  would be                                                               
double the current increase.                                                                                                    
                                                                                                                                
9:49:16 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman moved  to report  CS SB  27, 25-LS0211\E,  from                                                               
Committee   with   individual   recommendations   and   new   and                                                               
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Co-Chair Stedman objected for the purpose of discussion.                                                                        
                                                                                                                                
Senator  Dyson  thanked  the  Committee   for  assisting  in  the                                                               
drafting of a bill he would support.                                                                                            
                                                                                                                                
Co-Chair Stedman removed his objection.                                                                                         
                                                                                                                                
There was no further objection and  CS SB 27 (FIN) was MOVED from                                                               
Committee with  previous fiscal  note #4  from the  Department of                                                               
Health  and  Social  Services Senior  and  Disabilities  Medicaid                                                               
Services for  $5,130,100 and  previous zero  fiscal note  #5 from                                                               
the  Department of  Corrections  Office of  the Commissioner,  as                                                               
well  as new  fiscal  notes  from the  Department  of Health  and                                                               
Social  Services   for  Medicaid   Services  in  the   amount  of                                                               
$2,195,400  dated 5/08/07,  Behavioral  Health Medicaid  Services                                                               
for $455,900  dated 5/08/07 and Public  Assistance Field Services                                                               
in the amount of $40,200 dated 5/08/07.