BILL ANALYSIS H.B. 867 By: Maxey (Sponsor) Health and Human Services 5-11-95 Senate Committee Report (Unamended) BACKGROUND The federal Health Care Financing Administration, which oversees all Medicaid programs, has encouraged states to upgrade reimbursement systems and has made grants available to facilitate this process. PURPOSE As proposed, H.B. 867 requires the Texas Department of Human Services to develop an automated system for providing reimbursements to nursing homes under the state Medicaid program. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted to the Texas Department of Human Services under SECTION 1 (Section 242.205, Health and Safety Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 242, Health and Safety Code, by adding Subchapter H, as follows: SUBCHAPTER H. AUTOMATED MEDICAID PATIENT CARE AND REIMBURSEMENT SYSTEM Sec. 242.201. AUTOMATED SYSTEM FOR MEDICAID PATIENT CARE AND REIMBURSEMENT. (a) Requires the Texas Department of Human Services (department) to acquire and develop an automated system for providing reimbursements to nursing homes under the state Medicaid program (automated system), subject to the availability of funds appropriated for that purpose. (b) Requires the department to select an automated system that will allow the addition of other components of the state Medicaid program. (c) Requires the department and the Health and Human Services Commission (commission) to work together to apply for all available federal funds to help pay for the automated system. (d) Requires the department to assist nursing homes to make systems compatible with the automated system selected by the department. Sec. 242.202. DATA USED BY SYSTEM. Requires the automated system to use a form designed by the U.S. Health Care Financing Administration for nursing home use. Sec. 242.203. ELECTRONIC CLAIMS FOR REIMBURSEMENT. (a) Requires the automated system to be able to link the department electronically with nursing homes making claims for reimbursement. Requires each nursing home to make claims electronically. (b) Requires the department to charge a fee, in an amount necessary to cover the costs of manually processing the claims, to nursing homes that do not make their claims for reimbursement electronically. Sec. 242.204. DATE OF REIMBURSEMENT. Requires the department to pay the nursing home reimbursement claims under the state Medicaid program that are made electronically not later than the 30th day after the date the claim is made. Sec. 242.205. RULES. Requires the department to adopt rules and make policy changes as necessary to improve the efficiency of the reimbursement process and to maximize the automated system's capabilities. SECTION 2. (a) Requires the department to implement the nursing home reimbursement component of the automated system not later than January 1, 1997. Requires the commission to evaluate and determine deadlines for using the system for other components of the state Medicaid program and to work with health and human services agencies to allocate costs. (b) Requires the department to reduce staff and purchases as savings and efficiency from implementing the automated reimbursement system are realized. SECTION 3. Emergency clause. Effective date: upon passage.