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.