By:  Zaffirini, Moncrief                               S.B. No. 600
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the development of certain standards and complaint
    1-2  system guidelines for managed care organizations covering Medicaid
    1-3  clients.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter B, Chapter 12, Health and Safety Code,
    1-6  is amended by adding Section 12.017 to read as follows:
    1-7        Sec. 12.017.  MANAGED CARE ORGANIZATIONS:  MEDICAID PROGRAM.
    1-8  (a)  Except as provided by Section 533.045, the department shall
    1-9  develop for managed care organizations that serve Medicaid clients
   1-10  performance, operation, quality of care, marketing, and financial
   1-11  standards and standards relating to children's access to quality
   1-12  health care services.
   1-13        (b)  In establishing standards under this section, the
   1-14  department, to the extent possible, shall ensure that each Medicaid
   1-15  client can receive quality health care services in the client's
   1-16  local community.
   1-17        SECTION 2.  Subchapter B, Chapter 533, Health and Safety
   1-18  Code, is amended by adding Section 533.045 to read as follows:
   1-19        Sec. 533.045.  MANAGED CARE ORGANIZATIONS:  MEDICAID PROGRAM.
   1-20  The department shall develop performance, operation, and financial
   1-21  standards for the provision by managed care organizations of mental
   1-22  health and mental retardation services to Medicaid clients.
   1-23        SECTION 3.  Chapter 1, Insurance Code, is amended by adding
   1-24  Article 1.61 to read as follows:
    2-1        Art. 1.61.  MEDICAID MANAGED CARE ORGANIZATION:  FISCAL
    2-2  SOLVENCY AND COMPLAINT SYSTEM GUIDELINES.  In conjunction with the
    2-3  Texas Department of Health, the department shall establish fiscal
    2-4  solvency standards and complaint system guidelines for managed care
    2-5  organizations that serve Medicaid patients.
    2-6        SECTION 4.  This Act takes effect September 1, 1995.
    2-7        SECTION 5.  The importance of this legislation and the
    2-8  crowded condition of the calendars in both houses create an
    2-9  emergency and an imperative public necessity that the
   2-10  constitutional rule requiring bills to be read on three several
   2-11  days in each house be suspended, and this rule is hereby suspended.