S.B. No. 602
                                        AN ACT
    1-1  relating to the development and implementation of a computer
    1-2  database to reduce fraud and abuse in the Medicaid program.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Article 4413(502), Revised Statutes, is amended
    1-5  by adding Section 16A to read as follows:
    1-6        Sec. 16A.  MEDICAID DATA COLLECTION SYSTEM.  (a)  The
    1-7  commission and each health and human services agency that
    1-8  administers a part of the state Medicaid program shall jointly
    1-9  develop a system to coordinate and integrate state Medicaid
   1-10  databases to:
   1-11              (1)  facilitate the comprehensive analysis of Medicaid
   1-12  data; and
   1-13              (2)  detect fraud perpetrated by a program provider or
   1-14  client.
   1-15        (b)  To minimize cost and duplication of activities, the
   1-16  commission shall assist and coordinate:
   1-17              (1)  the efforts of the agencies that are participating
   1-18  in the development of the system required by Subsection (a); and
   1-19              (2)  the efforts of those agencies with the efforts of
   1-20  other agencies involved in a statewide health data collection
   1-21  system provided for by legislation enacted by the 74th Legislature,
   1-22  including avoiding duplication of expenditure of state funds for
   1-23  computer hardware, staff, or services.
   1-24        (c)  On the request of the commissioner, a state agency that
    2-1  administers any part of the state Medicaid program shall assist the
    2-2  commission in developing the system required by this section.
    2-3        (d)  The commission shall develop the database system in a
    2-4  manner that will enable a complete analysis of the use of
    2-5  prescription medications, including information relating to:
    2-6              (1)  Medicaid clients for whom more than three
    2-7  medications have been prescribed; and
    2-8              (2)  the medical effect denial of Medicaid coverage for
    2-9  more than three medications has had on Medicaid clients.
   2-10        SECTION 2.  This Act takes effect September 1, 1995.
   2-11        SECTION 3.  The importance of this legislation and the
   2-12  crowded condition of the calendars in both houses create an
   2-13  emergency and an imperative public necessity that the
   2-14  constitutional rule requiring bills to be read on three several
   2-15  days in each house be suspended, and this rule is hereby suspended.