FISCAL NOTE TO

[First Reprint]

ASSEMBLY, No. 1479

STATE OF NEW JERSEY

DATED: JUNE 9, 1997

      Bill Summary:

      Assembly Bill No. 1479 (1R) of 1996 requires the Commissioner of Health and Senior Services (DHSS), in conjunction with other State agencies and the Health Information Electronic Data Interchange Policy Advisory Council, to present an annual report to the Governor and the Legislature on Statewide health care expenditures based upon a survey of health care facilities and providers, various types of health insurers, business and organized labor. Detailed financial information about administrative cost savings achieved by acute care hospitals as a result of increased utilization of electronic data interchange technology is also to be included in the report.

      Department Comments:

      DHSS and the Office of Management and Budget (OMB) have projected costs of $570,000, $573,000 and $575,000, respectively, in each of the next three fiscal years, of which $502,000 annually would be for contract services for surveys related to the development of Statewide health care expenditure estimates. DHSS and OMB further note that between $1.65 million and $8.25 million will be available to DHSS from the Electronic Data Interchange Technology Fund established in Assembly Bill No. 1480 of 1996 for costs associated with the survey.

      Office of Legislative Services Comments:

      There is no direct cost to the State as a result of this legislation as the cost of the survey is to be supported by revenues made available to DHSS from the Electronic Data Interchange Technology Fund, if Assembly Bill No. 1480 of 1996 is enacted into law.

      The cost estimates of DHSS and OMB appear reasonable, though it is noted that much of the information on Statewide health care expenditures is already compiled by various sources. For example, DHSS already obtains information on inpatient/outpatient hospital and nursing home expenditures. The Medicare and Medicaid programs routinely publish expenditure data on program costs specific to the State. Finally, it is noted that the federal government publishes periodic estimates of health care expenditures on a State level in Health Care Financing Review. Thus, it may be possible to reduce estimated costs by relying more extensively on data that are already available.

This fiscal note has been prepared pursuant to P.L.1980, c.67.