Mmb.state.mn.us

Consolidated Fiscal Note – 2009-10 Session
Fiscal Impact
Bill #: S0178-0
Complete Date: 03/03/09
Chief Author: BERGLIN, LINDA
Title: DURABLE MED EQUIP COVERAGE EXP
Agencies:
This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only.
Net Expenditures
Revenues
Net Cost <Savings>
Total Cost <Savings> to the State
Full Time Equivalents
Total FTE
Consolidated EBO Comments
I have reviewed this Fiscal Note for accuracy and content.
EBO Signature: RYAN BAUMTROGDate: 03/03/09 Phone: 201-8038 Fiscal Note – 2009-10 Session
Fiscal Impact
Bill #: S0178-0
Complete Date: 02/04/09
Chief Author: BERGLIN, LINDA
Title: DURABLE MED EQUIP COVERAGE EXP
Agency Name:
This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only.
Expenditures
Less Agency Can Absorb
Net Expenditures
Revenues
Net Cost <Savings>
Total Cost <Savings> to the State
Full Time Equivalents
Total FTE
Bill Description
S-0178-0 requires a health plan that provides durable medical equipment to cover high efficiency particulate air
(HEPA) cleaners, allergy bed and pillow encasements, high filtration filters for furnaces and dehumidifiers that
would be effective on 08/01/2009. This coverage also applies to Minnesota Medical Assistance (MA) and
General Assistance Medical Care (GAMC).
Assumptions
The work would require approximately 10 minutes per filing. An estimate of 1000 filings would be processed in a
fiscal year. A mid-level professional would be doing the work.
Expenditure and/or Revenue Formula
Expenditure Formula
**Estimated cost on an annual fiscal year basis which includes fringe benefits.
FY 2010
0.08 FTE x $75,475 estimated cost = $6,038
FY 2011
0.08 FTE x $76,186 estimated cost = $6,095
FY 2012
0.08 FTE x $78,438 estimated cost = $6,275
FY 2013
0.08 FTE x $80,763 estimated cost = $6,461
Long-Term Fiscal Considerations
Costs associated with this would be ongoing. Additional employees wouldn’t be hired because the work would be
minimal, but the costs associated with this bill would need to be dedicated for future years.
Local Government Costs
Could impact local governments because a new benefit would be provided and premiums could increase because
of this.
References/Sources
None
FN Coord Signature: RICK BYERSDate: 02/04/09 Phone: 296-5689 EBO Comments
I have reviewed this Fiscal Note for accuracy and content.
EBO Signature: RYAN BAUMTROGDate: 02/04/09 Phone: 201-8038 Fiscal Note – 2009-10 Session
Fiscal Impact
Bill #: S0178-0
Complete Date: 03/02/09
Chief Author: BERGLIN, LINDA
Title: DURABLE MED EQUIP COVERAGE EXP
Agency Name:
This table reflects fiscal impact to state government. Local government impact is reflected in the narrative only.
Expenditures
Less Agency Can Absorb
Net Expenditures
Revenues
Net Cost <Savings>
Total Cost <Savings> to the State
Full Time Equivalents
Total FTE
NARRATIVE: SF 178/HF 264
This bill would expand Minnesota Health Care Programs coverage of durable medical equipment to include itemsthat treat the symptoms of asthma. Items specifically listed in the legislation include high efficiency particulate air(HEPA) cleaners, HEPA vacuum cleaners, allergy bed and pillow encasements, high filtration filters for forced airgas furnaces, and dehumidifiers with medical tubing to connect the appliance to a floor drain, if the listed item isnecessary to reduce asthma symptoms. The bill does not limit coverage to the specifically mentioned items.
It is not clear that the supplies and equipment covered by this legislation would qualify for Federal FinancialParticipation (FFP) under the current State Medical Assistance Plan. This legislation does not require federalapproval before implementation. Therefore, this fiscal note assumes no FFP. (If the bill is amended to requirefederal approval before implementation, then federal matching funds would be assumed.) It is assumed that 5,060 MA cases will receive durable medical equipment to treat the symptoms of asthma underthe expanded benefit.
MinnesotaMEDICAL ASSISTANCEFiscal Analysis of a Proposal toCover Equipment and Supplies for Recipients with Asthma These projections assume 1200 cases with high need of asthma supplies,3600 with medium need, and 23,600 with low need.
rates are 75% for those with high need, 50% for those with medium need, and10% for those with low need.
Base costs assume a maximum cost of $1454 for the first year of participationand $538 for the second and third years of participation.
in MA enrollment, the base cost used for the second and following years isthe average of $1454 and $538.
We assume average costs will be substantially less than the estimated maximumcost because we assume very few participants will receive both of the expensiveitems available: a canister vacuum and a dehumidifier.
Average cost projections have been reduced by 20% based on our assumption thatprior authorization will be required for expensive items.
If language requires federal approval before implementation, then federal We are unable to project consequential MA savings resulting from the provision ofequipment and supplies.
The intervention reported on by the Minnesota Department of Health (Reducing Environmental Triggers of Asthma in Homes of MinnesotaChildren. Minnesota Department of Health.
asthma education at six-month intervals plus the provision of needed equipment andsupplies.
This intervention is estimated to have produced statistically significant declines over 12 months in office visits and the use of oral prednisone(Page 16).
Since, however, the equipment and supplies represented only a part of the intervention, and might be considered ancillary to the intervention, it doesnot seem appropriate to attribute savings to that part of the intervention alone.
Reducing Environmental Triggers of Asthma in Homes of Minnesota Children. Minnesota Department of Health.
September 2007.
Agency Contact Name: Dave Greeman 431-4311FN Coord Signature: JAYNE RANKINDate: 03/02/09 Phone: 431-3432 EBO Comments
I have reviewed this Fiscal Note for accuracy and content.
EBO Signature: KATHARINE BARONDEAUDate: 03/02/09 Phone: 201-8026

Source: http://www.mmb.state.mn.us/bis/fnts_leg/2009-10/S0178_0.pdf