LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                        February 21, 1995



 TO:     Honorable Judith Zaffirini, Chair      IN RE:  Senate Bill No. 600
         Committee on Health & Human Services           By: Zaffirini
         Senate
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
600 (Relating to performance, operation, and financial standards
for managed care organizations covering Medicaid clients.) this
office has determined the following:

The bill would require the Department of Health to develop
performance, operation, and financial standards for managed care
organizations that serve Medicaid clients.  The bill requires the
Department of Insurance, in conjunction with the Department of
Health,  to develop fiscal solvency standards for managed care
organizations that serve Medicaid clients.


No fiscal implication to the State or units of local government
is anticipated.




Source:   Department of Insurance, Department of Health
          LBB Staff: JK, KF, AZ, DF