By Patterson                                          S.C.R. No. 59
       74R5149 RNS-D
                                 CONCURRENT RESOLUTION
    1-1        WHEREAS, In its report to the 74th Texas Legislature, the
    1-2  Senate Health and Human Services Committee concluded that there is
    1-3  a pressing need for an audit of the Medicaid program, that it may
    1-4  be in the best interest of the state if nursing homes were dually
    1-5  certified for Medicare and Medicaid, and that significant savings
    1-6  might accrue if certain state schools and hospitals were
    1-7  privatized; and
    1-8        WHEREAS, The Medicaid Fraud Control Unit, Office of the
    1-9  Attorney General, contends that fraud accounts for approximately 10
   1-10  percent of Medicaid program costs; therefore, a targeted audit
   1-11  focusing on areas not audited regularly or previously could
   1-12  potentially save a substantial amount of state revenue by helping
   1-13  to reduce fraud; and
   1-14        WHEREAS, It is the responsibility of the federal Medicare
   1-15  program to pay for the first 100 days of skilled nursing facility
   1-16  care after hospital discharge, but if a facility is not dually
   1-17  certified these costs are assumed by the state Medicaid program;
   1-18  therefore, dual certification of facilities to serve both Medicare
   1-19  and Medicaid clients could potentially save state revenue by
   1-20  allowing the federally funded program to assume these costs; and
   1-21        WHEREAS, Privatization of state school campus operations
   1-22  potentially could save an estimated $14.1 million in general
   1-23  revenue per fiscal year, while privatization of state hospitals
   1-24  potentially could save an estimated $4.87 million in general
    2-1  revenue for the 1996-1997 biennium; now, therefore, be it
    2-2        RESOLVED, That the 74th Legislature of the State of Texas
    2-3  hereby request the State Medicaid Office, in conjunction with the
    2-4  appropriate state agencies, to develop a proposal for a
    2-5  comprehensive or targeted audit of the Medicaid program; and, be it
    2-6  further
    2-7        RESOLVED, That the State Medicaid Office submit the proposal
    2-8  for a program audit to the Senate Health and Human Services
    2-9  Committee not later than March 1, 1995; and, be it further
   2-10        RESOLVED, That the State Medicaid Office determine the
   2-11  feasibility of requiring nursing homes providing Medicaid services
   2-12  to be dually certified for Medicare, as is currently the practice
   2-13  in Primary Home Care and Nursing Facility Waiver programs; and, be
   2-14  it further
   2-15        RESOLVED, That the Council on Competitive Government study
   2-16  the feasibility and ramifications of privatizing state schools for
   2-17  persons with mental retardation and of privatizing state hospitals
   2-18  for persons with mental illness; and, be it further
   2-19        RESOLVED, That the secretary of state forward official copies
   2-20  of this resolution to the State Medicaid Office and to the Council
   2-21  on Competitive Government.