By Zaffirini                                           S.B. No. 600
       74R3829 MLR-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to performance, operation, and financial standards for
    1-3  managed care organizations covering Medicaid 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  The department shall develop performance, operation, and financial
    1-9  standards for managed care organizations that serve Medicaid
   1-10  clients.
   1-11        SECTION 2.  Chapter 1, Insurance Code, is amended by adding
   1-12  Article 1.61 to read as follows:
   1-13        Art. 1.61.  MEDICAID MANAGED CARE ORGANIZATION:  FISCAL
   1-14  SOLVENCY.  In conjunction with the Texas Department of Health, the
   1-15  department shall establish fiscal solvency standards for managed
   1-16  care organizations that serve Medicaid patients.
   1-17        SECTION 3.  This Act takes effect September 1, 1995.
   1-18        SECTION 4.  The importance of this legislation and the
   1-19  crowded condition of the calendars in both houses create an
   1-20  emergency and an imperative public necessity that the
   1-21  constitutional rule requiring bills to be read on three several
   1-22  days in each house be suspended, and this rule is hereby suspended.