FY 2018-19 SUPPLEMENTAL H.B. 4245 (H-2):
SUMMARY AS PASSED BY THE SENATE
House Bill 4245 (Substitute H-2 as passed by the Senate)
Sponsor: Representative Shane Hernandez
CONTENT
The supplemental would provide appropriations for fiscal year (FY) 2018-19 for the Department of Health and Human Services (DHHS). The FY 2018-19 supplemental would provide funding to the DHHS to cover expected expenditures and to square appropriations with expenditures for bookclosing. Table 1 summarizes the appropriations in the supplemental.
Table 1
|
FY 2018-19 Supplemental Appropriations |
||||
|
Budget Area |
Gross |
Federal |
State Restricted |
GF/GP |
|
Health & Human Services |
$174,367,800 |
$27,500,000 |
$28,964,500 |
$117,903,300 |
|
TOTAL |
$174,367,800 |
$27,500,000 |
$28,964,500 |
$117,903,300 |
FISCAL IMPACT
The bill provides line item appropriations of $174.4 million Gross and $117.9 million GF/GP for FY 2018-19. The adjustments for DHHS reflect final estimated expenditures for the Department. These adjustments include caseload costs for the Medicaid program, a caseload and fund source shortfall in the Child Care Fund (CCF) line, minor public assistance caseload adjustments, reimbursement to the Federal government for audit findings, and risk corridor payments to four Prepaid Inpatient Health Plans (PIHPs). The Medicaid caseload costs reflect final caseload adjustments as well as reduced pharmacy rebates, increased enrollment in the Children's Special Health Care Services managed care program, and increased Medicaid special financing revenue for hospitals. The CCF adjustment reflects both greater reimbursements to counties as well as the inability to use Federal Temporary Assistance for Needy Families (TANF) revenues for reimbursement. The Federal audit obligations reflect the Federal match on certain Medicaid payments identified in audits as being State responsibilities. The PIHP risk share payments reflect the State shares of costs that exceed the PIHP risk corridor defined in statute. These include $1.1 million for Lakeshore Regional Entity, $9.1 million for Southeast Michigan PIHP, $2.5 million for Macomb PIHP, and $8.0 million for Oakland PIHP.
Table 2 summarizes the details of the appropriations in the supplemental.
FY 2018-19 BOILERPLATE LANGUAGE SECTIONS-PART 2
Sec. 201. General. Records amount of total State spending and payments to local units of government.
Sec. 202. General. Subjects appropriations and expenditures in the article to the provisions of the Management and Budget Act.
Sec. 203. General. Allows the Legislature to intra-transfer funds via a concurrent resolution if the State Administrative Board transfers funds.
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Table 2 |
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FY 2018-19 Supplemental Appropriations |
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|
Department/Program |
Gross |
GF/GP |
|
Health and Human Services |
||
|
Child care fund base and TANF fund source........................ |
$20,000,000 |
$20,000,000 |
|
State disability assistance base and fund source.................. |
(125,500) |
910,000 |
|
State supplementation base and caseload.......................... |
(2,300,000) |
(2,300,000) |
|
Medicaid mental health services base funding need.............. |
14,200,000 |
2,200,000 |
|
Physical health Medicaid base and fund source.................... |
105,500,000 |
60,000,000 |
|
Federal audit obligations.................................................. |
16,400,000 |
16,400,000 |
|
PIHP risk share payments................................................ |
20,693,300 |
20,693,300 |
|
Total Health and Human Services................................... |
$174,367,800 |
$117,903,300 |
|
Total FY 2018-19 Supplemental Appropriations.............. |
$174,367,800 |
$117,903,300 |
Fiscal Analyst: Steve Angelotti
This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.