BILL ANALYSIS C.S.S.B. 605 By: Madla Health and Human Services 03-16-95 Committee Report (Substituted) 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 $11.9 billion in federal funds. The growth is due to federal mandates regarding eligibility expansions, mandatory services, and provider reimbursement rules. Although caseload growth in the program slowed recently, the demand for new state funds for Medicaid in the 1996-97 biennium will be approximately $2.2 billion. 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 on May 31-June 1, 1994; on-site visits to Medicaid managed care pilots projects in Texas, to a facility for persons with mental retardation, to special homes for children, to a rural health clinic and to a rehabilitation center; and a second hearing on November 29-30, 1994. The committee heard public testimony with the House Committee on Public Health and Human Services and then adopted the recommendations that are the basis of this legislation. PURPOSE As proposed, C.S.S.B. 605 requires 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 conforming changes. 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.