By Zaffirini                                            S.B. No. 10
       74R5898 CLG-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the development of a health care delivery system under
    1-3  the state Medicaid program that results in cost savings to the
    1-4  state.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Article 4413(502), Revised Statutes, is amended
    1-7  by adding Section 16A to read as follows:
    1-8        Sec. 16A.  HEALTH CARE DELIVERY SYSTEM.  (a)  The commission
    1-9  may develop a health care delivery system that restructures the
   1-10  delivery of health care services provided under the state Medicaid
   1-11  program.   In developing the health care delivery system, the
   1-12  commission shall:
   1-13              (1)  to the extent possible, design the system in a
   1-14  manner that will improve the health of Texans by emphasizing
   1-15  prevention, promoting continuity of care and providing a medical
   1-16  home for Medicaid recipients, and promoting the access of Medicaid
   1-17  recipients to quality health care services;
   1-18              (2)  to the extent possible, design the system in a
   1-19  manner that will enable the state to control the costs associated
   1-20  with growth in the state Medicaid program and result in cost
   1-21  savings to the state;
   1-22              (3)  to the extent possible:
   1-23                    (A)  maximize the financing of the state Medicaid
   1-24  program by obtaining federal matching funds for local and state
    2-1  resources spent on indigent health care; and
    2-2                    (B)  expand Medicaid eligibility to include
    2-3  persons who were eligible to receive indigent health care services
    2-4  through the use of those local and state resources before expansion
    2-5  of the program;
    2-6              (4)  design the system to include methods for ensuring
    2-7  accountability to the state for the provision of health care
    2-8  services under the state Medicaid program, including methods for
    2-9  financial reporting, quality assurance, and utilization review;
   2-10              (5)  ensure that both private and public health care
   2-11  providers will have an opportunity to participate in the provision
   2-12  of health care services under the system;
   2-13              (6)  design the system in a manner that enables the
   2-14  state to use different types of health care delivery systems in
   2-15  different health care service regions, including systems such as a
   2-16  primary care case management system, partially capitated system, or
   2-17  fully capitated system or a combination of one or more of those
   2-18  systems;
   2-19              (7)  emphasize coordination in the provision of
   2-20  indigent health care by establishing geographic health care service
   2-21  regions after consulting with local governmental entities; and
   2-22              (8)  write, in conjunction with the following entities,
   2-23  the waiver or other documents necessary to obtain federal
   2-24  authorization for the health care delivery system developed under
   2-25  this section:
   2-26                    (A)  governmental entities that provide health
   2-27  care services and assistance to indigent persons in this state;
    3-1                    (B)  consumer representatives;
    3-2                    (C)  health plan providers; and
    3-3                    (D)  health care providers.
    3-4        (b)  The Texas Department of Health shall implement a health
    3-5  care delivery system developed under this section, subject to the
    3-6  administrative authority of the commission.
    3-7        (c)  In this section, "resources" means:
    3-8              (1)  for an entity listed in Subsection (d)(1), (d)(5),
    3-9  or (d)(6) of this section, tax and other revenues spent on indigent
   3-10  health care; and
   3-11              (2)  for an entity listed in Subsection (d)(2), (d)(3),
   3-12  or (d)(4) of this section, charity care provided by that entity to
   3-13  indigent persons.
   3-14        (d)  If a health care delivery system developed under this
   3-15  section includes a method to finance the state Medicaid program by
   3-16  obtaining federal matching funds for local and state resources
   3-17  spent on indigent health care, the following entities shall make
   3-18  resources available to the commission for use by the Texas
   3-19  Department of Health in implementing the health care delivery
   3-20  system:
   3-21              (1)  a hospital district created and established under
   3-22  the authority of Sections 4 through 11, Article IX, Texas
   3-23  Constitution;
   3-24              (2)  a medical school operated by the state;
   3-25              (3)  a medical school that receives state funds under
   3-26  Section 61.093, Education Code;
   3-27              (4)  a teaching hospital operated by The University of
    4-1  Texas System;
    4-2              (5)  a county that provides health care services and
    4-3  assistance to indigent residents of the county under Subchapter B,
    4-4  Chapter 61, Health and Safety Code; and
    4-5              (6)  a governmental entity that provides funds to a
    4-6  public hospital as defined by Section 61.002, Health and Safety
    4-7  Code, for the provision of health care services and assistance to
    4-8  indigent persons under Chapter 61, Health and Safety Code.
    4-9        (e)  The amount of resources an entity makes available to the
   4-10  commission under Subsection (d) of this section in a fiscal year as
   4-11  determined under this subsection shall be agreed on by the
   4-12  commission and the entity before the commission submits a waiver
   4-13  application or a renewal waiver application that a federal agency
   4-14  may require to implement the health care delivery system.  The
   4-15  commission shall design the system so that the value of Medicaid
   4-16  health care services provided in the area of each participating
   4-17  entity to persons who are eligible for Medicaid as a result of the
   4-18  expanded eligibility criteria developed under Subsection (a)(3)(B)
   4-19  of this section is at least equal to the amount of resources made
   4-20  available to the commission by the entity.    The amount is
   4-21  computed by:
   4-22              (1)  adding the total amount of resources the entity
   4-23  spends on indigent health care during the 1993-1994 fiscal year and
   4-24  an amount equal to the estimate of the entity's annual growth in
   4-25  expenditures for indigent health care for the fiscal year in which
   4-26  the amount is computed; and
   4-27              (2)  subtracting from the amount computed under
    5-1  Subdivision (1) of this subsection the following adjustments:
    5-2                    (A)  the estimate of the amount of resources the
    5-3  entity spent on health care services and assistance provided by the
    5-4  entity or on the entity's behalf to indigent persons who are not
    5-5  eligible to receive services and assistance under the state
    5-6  Medicaid program;
    5-7                    (B)  the estimate of the amount of resources the
    5-8  entity makes available for federal matching funds under the
    5-9  Medicaid disproportionate share program; and
   5-10                    (C)  any other adjustment determined necessary or
   5-11  equitable.
   5-12        (f)  The governing body of an entity may elect to make
   5-13  available to the commission an amount greater than the amount
   5-14  computed under Subsection (e) of this section.
   5-15        (g)  The commission by rule shall determine the manner in
   5-16  which an entity described by Subsection (d) of this section shall
   5-17  make resources available to the commission under this section.
   5-18        (h)  To the extent of conflict between this section and
   5-19  another provision of state law relating to the state Medicaid
   5-20  program, this section prevails.
   5-21        SECTION 2.  If before implementing Section 16A, Article
   5-22  4413(502), Revised Statutes, as added by this Act, the Health and
   5-23  Human Services Commission determines that a waiver or authorization
   5-24  from a federal agency is necessary for implementation, the
   5-25  commission shall request the waiver or authorization and may
   5-26  authorize a delay in implementing that provision until the waiver
   5-27  or authorization is granted.
    6-1        SECTION 3.  This Act takes effect September 1, 1995.
    6-2        SECTION 4.  The importance of this legislation and the
    6-3  crowded condition of the calendars in both houses create an
    6-4  emergency and an imperative public necessity that the
    6-5  constitutional rule requiring bills to be read on three several
    6-6  days in each house be suspended, and this rule is hereby suspended.