BILL ANALYSIS S.B. 605 By: Madla, et al. (Berlanga, et al.) 04-27-95 Committee Report (Unamended) BACKGROUND The Texas Medicaid program has grown from a total budget of $7.5 billion in the 1990-91 biennium to an appropriation of $18.7 billion for the current 1994-95 biennium, including $6.8 billion in general revenue and $11.7 billion in federal funds. This growth is due to federal mandates regarding eligibility expansions, required services, and provider reimbursement rules. Lt. Gov. Bob Bullock charged the Senate Committee on Health and Human Services with the challenging task of developing recommendations for wholesale reform. In response the committee began an intensive investigation that included a public hearing May 31-June 1, 1994, and on-site visits to Medicaid managed care pilot projects in Texas, to a rural health clinic, and to a rehabilitation center. On November 29-30, 1994, the House Committees on Public Health and on Human Services joined the Senate committee in a second public hearing in which public testimony was taken. The Senate Committee on Health and Human Services then adopted the recommendations that are the basis of this legislation. PURPOSE S.B. 605 as engrossed would require the Texas Department of Mental Health and Mental Retardation to evaluate and revise its sliding fee schedules. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 552.017, Health and Safety Code, by adding Subsection (e), as follows: (e) Requires the Texas Department of Mental Health and Mental Retardation (department) to evaluate and, if necessary, revise the fee schedule at least once every five years. SECTION 2. Amends Section 593.075, Health and Safety Code, by adding Subsection (e) to make changes conforming with Section 1 of this bill. SECTION 3. Requires the department to evaluate and, if necessary, revise its sliding fee schedules by January 1, 1996. SECTION 4. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE ACTION S.B. 605 was considered by the Public Health Committee in a formal meeting April 27, 1995. The bill was reported favorably without amendment, and with the recommendation that it do pass and be printed, by a record vote of 9 Ayes, 0 Nays, 0 PNV, and 0 Absent.