Skip Main Navigation
Office of Management and Budget
About OMB
President's Budget
Management
Information &
Regulatory Affairs
Legislative Information
Agency Information

Report No: 517
Date: 11/16/2000

OMB COST ESTIMATE
FOR PAY-AS-YOU-GO CALCULATIONS

  1. LAW NUMBER: P.L.106-310 (H.R. 4365)

  2. BILL TITLE: Children's Health Act

  3. BILL PURPOSE: (1) Authorizes appropriations for a wide variety of programs that address specific childhood health problems and prenatal risk factors; (2) establishes a new program to improve the health and safety of children in child care facilities; (3) authorizes grants to develop and implement adoption counseling training programs; (4) reauthorizes the drug abuse prevention and treatment and mental health services programs of the Substance Abuse and Mental Health Administration; (5) permits the Drug Enforcement Administration (DEA) to grant waivers to allow physicians to administer certain narcotic drugs to individuals for maintenance or detoxification treatment; and (6) increases criminal penalties for manufacturing methamphetamine, amphetamine, and "Ecstasy."

  4. OMB ESTIMATE: P.L. 106-310 would broaden the eligibility criteria for the national vaccine injury compensation program to include individuals who require hospitalization and surgical intervention for the treatment of vaccine-related injuries. Under prior law, individuals with injuries lasting less than six months could not file for compensation. OMB estimates that compensation payments of $7 million over 5 years will be paid as a result of this change.
    5. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Net costs............... 0 2 3 2 * 0

  5. CBO ESTIMATE: In addition to the changes to the vaccine compensation program scored by OMB, CBO scores costs for provisions that permit physicians to dispense and prescribe certain narcotic drugs for maintenance and detoxification treatment, under certain conditions, without obtaining a separate DEA registration. CBO assumes that these changes will lead to increases in medicaid costs for the treatment of drug addiction.
    6. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Net costs............... 0 2 8 7 10 10

     

  6. EXPLANATION OF DIFFERENCES BETWEEN OMB AND CBO ESTIMATES:

    7. CBO scores costs for the medicaid program related to changes in rules for distribution of certain narcotics. OMB considers any changes in medicaid costs related to these provisions to be indirect and not scorable for pay-as-you-go purposes.

  7. CUMULATIVE EFFECT OF DIRECT SPENDING AND REVENUE LEGISLATION ENACTED TO DATE:
    8. (Fiscal years; in millions of dollars)
    2000 2001 2002 2003 2004 2005
    Outlay effect.............. 34 540 1,332 1,357 1,464 1,531
    Receipt effect............ -8 -620 -698 -746 -781 -768
    Net costs.................... 42 1,160 2,030 2,103 2,245 2,299

    *$500,000 or less.

    NOTE: The cumulative effect of direct spending and revenue legislation enacted to date is currently estimated to result in an end-of-session sequester. The Administration looks forward to working with the Congress to ensure that an unintended sequester does not occur.