By:  Zaffirini, Ellis, Truan                            S.B. No. 79
            Moncrief, Patterson
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the requirement that the state develop a system of
    1-2  selective contracting with health care providers for the provision
    1-3  of certain services to Medicaid recipients.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subsection (a), Section 32.027, Human Resources
    1-6  Code, is amended to read as follows:
    1-7        (a)  Except as provided by Subsections (f) and (g), a <A>
    1-8  recipient of medical assistance authorized in this chapter may
    1-9  select any provider authorized by the department to provide medical
   1-10  assistance.
   1-11        SECTION 2.  Section 32.027, Human Resources Code, is amended
   1-12  by adding Subsections (f) and (g) to read as follows:
   1-13        (f)  The department by rule shall develop a system of
   1-14  selective contracting with health care providers for the provision
   1-15  of nonemergency inpatient hospital services to a recipient of
   1-16  medical assistance under this chapter.  In implementing this
   1-17  subsection, the department shall:
   1-18              (1)  seek input from consumer representatives and from
   1-19  representatives of hospitals licensed under Chapter 241, Health and
   1-20  Safety Code, and from organizations representing those hospitals;
   1-21  and
   1-22              (2)  ensure that providers selected under the system
   1-23  meet the needs of a recipient of medical assistance under this
   1-24  chapter.
    2-1        (g)  Subsection (f) does not limit the authority of the
    2-2  department to implement a system of selective contracting for the
    2-3  provision of other medical services to a recipient of medical
    2-4  assistance under this chapter.
    2-5        SECTION 3.  If before implementing Subsection (f) or (g),
    2-6  Section 32.027, Human Resources Code, as added by this Act, the
    2-7  Health and Human Services Commission determines that a waiver or
    2-8  authorization from a federal agency is necessary for
    2-9  implementation, the commission shall request the waiver or
   2-10  authorization and may authorize a delay in implementing that
   2-11  provision until the waiver or authorization is granted.
   2-12        SECTION 4.  This Act takes effect September 1, 1993.
   2-13        SECTION 5.  The importance of this legislation and the
   2-14  crowded condition of the calendars in both houses create an
   2-15  emergency and an imperative public necessity that the
   2-16  constitutional rule requiring bills to be read on three several
   2-17  days in each house be suspended, and this rule is hereby suspended.