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<title>SB137 - Analysis as Reported From House Committee (3/4/2015)</title>


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<p><b>AUTISM COVERAGE FUND</b></p>



<p><b>Senate Bill 137 as reported from House committee</b></p>

<p><b>Sponsor:  Sen. Dave Hildenbrand</b></p>

<p><b>House Committee:  Appropriations</b></p>

<p><b>Senate Committee:  Appropriations</b></p>



<p><b>Complete to 3-4-15</b></p>



<p style='text-align:justify'><b>SUMMARY: </b></p>



<p style='margin-left:.5in;text-align:justify;text-autospace:
none'><a name="StartText"></a>Senate Bill 137 revises Section 8 of the Autism
Coverage Reimbursement Act (2012 PA 101), under which the Autism Coverage Fund
is established. The Fund supports reimbursements paid to private health
insurance carriers for claims associated with the diagnosis and treatment of
autism spectrum disorder (ASD).  Under current law, for fiscal year 2014-15
only, up to $5.5 million from the Fund may be appropriated and expended for
university autism programs and autism family assistance services.  </p>



<p style='margin-left:.5in;text-align:justify;text-autospace:
none'>Under the bill, the amount is revised to up to $8.5 million that may be
expended for university autism programs and autism family assistance services
for FY 2014-15 only.</p>



<p style='text-align:justify'><b>FISCAL IMPACT:</b> </p>



<p style='margin-left:.5in;text-align:justify;text-autospace:
none'>To address revenue shortfalls, the Legislature passed Enrolled House Bill
4112 supplemental appropriations for FY 2014-15, which includes a net $0 gross
Fund shift of $3.0 million of the one-time appropriations for university autism
programs from GF/GP Funding to the Autism Coverage Fund, in the Department of
Community Health (DCH) budget.  </p>



<p style='margin-left:.5in;text-align:justify'>The Fund is
projected to have sufficient balance available to support this appropriation in
addition to reimbursements pursuant to 2012 PA 101 throughout FY 2014-15.  The
current balance of the Fund is $13.2 million, which would be reduced to $10.2
million with enactment of SB 137.  If the bill is not enacted, $3.0 million of
the appropriations in the enacted DCH budget for university autism programs
will not be available for expenditure. </p>



<p style='margin-left:.5in;text-align:justify'>Projections
discussed by the Department of Insurance and Financial Services, which assume
total monthly reimbursements averaging $800,000, estimate that money within the
Fund will be exhausted by the spring of 2016, or several months earlier if SB
137 is enacted.  However, whether the monthly reimbursements have stabilized or
will continue to escalate is currently unknown, accordingly this estimate is
subject to significant uncertainty.</p>



<p style='margin-left:.5in;text-align:justify'>Pursuant to 2012
PA 101, reimbursements shall only be approved and paid if there is sufficient
money within the Fund.  Consequently, the ACRP would ostensibly cease operation
(although the autism coverage mandate enacted by 2012 PA 100 would remain in
effect) unless or until the Legislature appropriates additional money to the
Fund prior to exhaustion of money within the Fund.</p>



<p style='margin-left:.5in;text-align:justify'>University
autism programs have received Funding since FY 2011-12 to support development
of education and treatment programs for persons with autism, and development of
education programs to build the workforce of health care professionals trained
to assess, diagnose and provide treatment services for persons with autism
spectrum disorders.<span style='font-size:11.5pt'>  </span></p>

































































<p style='text-align:justify'>                                                                                                                        <a name="Analyst"></a></p>

<p style='text-align:justify'>                                                                                               Fiscal
Analysts:   Susan Frey</p>

<p style='text-align:justify'>                                                                                                                           Paul
Holland</p>

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<p style='text-align:justify'><span style='font-size:10.0pt;
font-family:"Arial","sans-serif"'>&#9632;</span><span style='font-size:10.0pt'>
This analysis was prepared by nonpartisan House Fiscal Agency staff for use by
House members in their deliberations, and does not constitute an official
statement of legislative intent.</span></p>



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