129th MAINE LEGISLATURE
LD 1539 LR 587(01)
An Act To Provide Maine Children Access to Affordable Health Care
Preliminary Fiscal Impact Statement for Original Bill
Sponsor: Rep. Carney of Cape Elizabeth
Committee: Health and Human Services
Fiscal Note Required: Yes
             
Preliminary Fiscal Impact Statement
FY 2019-20 FY 2020-21 Projections  FY 2021-22 Projections  FY 2022-23
Net Cost (Savings)
General Fund $15,305,262 $42,561,411 $46,543,974 $46,543,974
Appropriations/Allocations
General Fund $15,305,262 $42,561,411 $46,543,974 $46,543,974
Federal Expenditures Fund $10,194,717 $20,367,061 $20,360,670 $20,360,670
Federal Block Grant Fund $59,271,104 $106,613,693 $102,637,521 $102,637,521
Revenue
Federal Expenditures Fund $10,194,717 $20,367,061 $20,360,670 $20,360,670
Federal Block Grant Fund $59,271,104 $106,613,693 $102,637,521 $102,637,521
Fiscal Detail and Notes
The Department of Health and Human Services (DHHS) will require General Fund appropriations of $15,305,262 in fiscal year 2019-20 and $42,561,411 in fiscal year 2020-21 due to adjustment of the eligibility requirements in the Children's Health Insurance Program (CHIP) and for the DHHS to contract for outreach activities rather than providing them directly. Federal Expenditures Fund allocations and Federal Block Grant Fund allocations will also be required for the FMAP match.

Currently, the CHIP Block Grant ends the year with a $20 million unexpended balance. However, the increase above would create expenditures above the current CHIP Block Grant funding level. If this bill is approved, the communication with the Centers for Medicare and Medicaid Services (CMS) will have to start early and CMS approval would require them to alter their method of allocating funds to states, giving Maine a bigger block grant. Since an increase in the CHIP Block Grant is not guaranteed, there is a potential that the increased funding would need to be from the general fund.