HBA-DMH H.C.R. 214 77(R) BILL ANALYSIS Office of House Bill AnalysisH.C.R. 214 By: Chavez Public Health 3/30/2001 Introduced BACKGROUND AND PURPOSE Currently, the federal share of the state's Medicaid costs, also referred to as the Federal Medical Assistance Percentage (FMAP), is calculated by comparing our state's per capita income with the per capita income of other states. Unfortunately, because of our geographic size the prosperity of certain regions masks the needs of other regions. The Texas-Mexico border region suffers from an inadequate medical infrastructure that has led to disparities in access to health care. Historically, the Texas-Mexico border region has had high patient-to-physician ratios, resulting in reduced utilization rates. The availability of medical care in Mexico may also be a factor in lower utilization rates for the region. A low utilization rate along the border creates a distorted assessment of the actual demand for services and inappropriately lowers the capitated reimbursement rates for Medicaid and the state child health plan (CHIP). Lower reimbursement rates create a disincentive for healthcare providers to locate and provide services to Medicaid and CHIP recipients in the region. Establishing a separate FMAP for the region would allow current state Medicaid funding in the region to draw down additional federal funds to help eliminate the disparity. House Concurrent Resolution 214 urges the Congress of the United States to establish a separate FMAP for the Texas-Mexico border region. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this resolution does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Concurrent Resolution 214 urges the Congress of the United States to establish a separate Federal Medical Assistance Percentage for the Texas-Mexico border region.