1-1  By:  Nelson, et al.                                    S.B. No. 604
    1-2        (In the Senate - Filed February 16, 1995; February 16, 1995,
    1-3  read first time and referred to Committee on Health and Human
    1-4  Services; March 16, 1995, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 9, Nays 0;
    1-6  March 16, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 604                   By:  Nelson
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to a pilot program for the establishment of medical
   1-11  savings accounts to assist Medicaid recipients.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  MEDICAID MEDICAL SAVINGS ACCOUNT PILOT PROGRAM.
   1-14  (a)  Not later than December 1, 1995, the Health and Human Services
   1-15  Commission shall develop a plan for a pilot program that uses
   1-16  Medicaid funds to establish medical savings accounts for recipients
   1-17  of acute care services under the state Medicaid program.
   1-18        (b)  The goals of the pilot program are to:
   1-19              (1)  create patient awareness of the high cost of
   1-20  medical care;
   1-21              (2)  provide incentives to patients to seek preventive
   1-22  and primary care services;
   1-23              (3)  reduce inappropriate use of health care services;
   1-24  and
   1-25              (4)  enable clients to take responsibility for healthy
   1-26  outcomes.
   1-27        (c)  The commission may examine each available medical
   1-28  savings account model to determine if the model can be used in this
   1-29  state.
   1-30        (d)  In developing the pilot program, the commission may
   1-31  provide that:
   1-32              (1)  providers receive payment at a negotiated rate for
   1-33  each patient;
   1-34              (2)  the savings realized by the pilot program are
   1-35  shared by the provider, client, and this state;
   1-36              (3)  the client's share of the savings is placed in a
   1-37  savings pool and credited to an individual medical savings account
   1-38  established by the provider for that client, provided that certain
   1-39  health maintenance standards are met;
   1-40              (4)  copayments and deductibles for inappropriate use
   1-41  of health care are paid by deducting an amount prescribed by the
   1-42  commission from the client's individual medical savings account;
   1-43  and
   1-44              (5)  bonus deposits are credited to a client's
   1-45  individual medical savings account for achieving health maintenance
   1-46  standards prescribed by the commission.
   1-47        (e)  The commission shall:
   1-48              (1)  determine the size and location of each pilot
   1-49  program;
   1-50              (2)  include urban and rural counties in determining
   1-51  location;
   1-52              (3)  develop health maintenance standards for each life
   1-53  cycle for use in determining if money should be credited to or
   1-54  deducted from an individual medical savings account;
   1-55              (4)  determine the amount of each bonus payment and
   1-56  deduction from an individual medical savings account;
   1-57              (5)  determine the appropriate method, other than a
   1-58  cash payment, for releasing to a client money in an individual
   1-59  medical savings account when the person no longer participates in
   1-60  the Medicaid program;
   1-61              (6)  exclude medical savings account funds in
   1-62  determining income, assets, or resources for purposes of
   1-63  eligibility for a public benefits program in this state, regardless
   1-64  of whether the funds are used by the household; and
   1-65              (7)  design the program so that the state controls the
   1-66  costs associated with the Medicaid program and, to the extent
   1-67  possible, saves money.
   1-68        (f)(1)  Except as otherwise provided by this subsection, the
    2-1  commission shall implement the pilot program not later than
    2-2  January 1, 1997.
    2-3              (2)  The commission may choose not to implement the
    2-4  pilot program if the commission or the commission's designee
    2-5  determines that the pilot program will not result in any cost
    2-6  savings to the state during the next five years.
    2-7              (3)  If the commission or the commission's designee
    2-8  decides not to implement the provisions of this Act, it will report
    2-9  its findings to the governor, lieutenant governor, speaker of the
   2-10  house of representatives, chair of the Senate Health and Human
   2-11  Services Committee, and the chair of the House Public Health
   2-12  Committee.  The report shall include:
   2-13                    (A)  the concept paper drafted to develop and
   2-14  implement the pilot program;
   2-15                    (B)  any fiscal implications and specific
   2-16  methodologies used in determining the fiscal implications of
   2-17  implementing the pilot program; and
   2-18                    (C)  the basis for the determination that the
   2-19  pilot program will not result in any cost savings to the state.
   2-20        SECTION 2.  REPORT.  Not later than January 15, 1999, the
   2-21  Health and Human Services Commission shall submit to the governor
   2-22  and the 76th Legislature a report concerning the effectiveness of
   2-23  the pilot program.
   2-24        SECTION 3.  WAIVERS.  If, before implementing Section 1 of
   2-25  this Act, the Health and Human Services Commission determines that
   2-26  a waiver or authorization from a federal agency is necessary for
   2-27  implementation, the commission shall request the waiver or
   2-28  authorization and may delay implementing those provisions until the
   2-29  waiver or authorization is granted.
   2-30        SECTION 4.  EXPIRATION DATE.  This Act expires September 1,
   2-31  1999.
   2-32        SECTION 5.  EMERGENCY.  The importance of this legislation
   2-33  and the crowded condition of the calendars in both houses create an
   2-34  emergency and an imperative public necessity that the
   2-35  constitutional rule requiring bills to be read on three several
   2-36  days in each house be suspended, and this rule is hereby suspended,
   2-37  and that this Act take effect and be in force from and after its
   2-38  passage, and it is so enacted.
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