Amend CSHB 2913 as follows:
      (1)  In SECTION 3 of the bill, strike added Section 533.004,
Government Code (Senate committee printing, page 2, line 60,
through page 3, line 34), and substitute the following:
      Sec. 533.004.  MANDATORY CONTRACTS. (a)  In providing health
care services through Medicaid managed care to recipients in a
health care service region, the commission shall contract with at
least one managed care organization in that region that is licensed
under the Texas Health Maintenance Organization Act (Chapter 20A,
Vernon's Texas Insurance Code) to provide health care in that
region and that is:
            (1)  wholly owned and operated by a hospital district
in that region;
            (2)  created by a nonprofit corporation that:
                  (A)  has a contract, agreement, or other
arrangement with a hospital district in that region or with a
municipality in that region that owns a hospital licensed under
Chapter 241, Health and Safety Code, and has an obligation to
provide health care to indigent patients; and
                  (B)  under the contract, agreement, or other
arrangement, assumes the obligation to provide health care to
indigent patients and leases, manages, or operates a hospital
facility owned by the hospital district or municipality; or
            (3)  created by a nonprofit corporation that has a
contract, agreement, or other arrangement with a hospital district
in that region under which the nonprofit corporation acts as an
agent of the district and assumes the district's obligation to
arrange for services under the Medicaid expansion for children as
authorized by Chapter 444, Acts of the 74th Legislature, Regular
Session, 1995.
      (b)  A managed care organization described by Subsection (a)
is subject to all terms and conditions to which other managed care
organizations are subject, including all contractual, regulatory,
and statutory provisions relating to participation in the Medicaid
managed care program.
      (c)  The commission shall make the awarding and renewal of a
mandatory contract under this section to a managed care
organization affiliated with a hospital district or municipality
contingent on the district or municipality  entering into a
matching funds agreement to expand Medicaid for children as
authorized by Chapter 444, Acts of the 74th Legislature, Regular
Session, 1995.  The commission shall make compliance with the
matching funds agreement a condition of the continuation of the
contract with the managed care organization to provide health care
services to recipients.
      (d)  Subsection (c) does not apply if:
            (1)  the commission does not expand Medicaid for
children as authorized by Chapter 444, Acts of the 74th
Legislature, Regular Session, 1995; or
            (2)  a waiver from a federal agency necessary for the
expansion is not granted.
      (2)  In SECTION 3 of the bill, strike Subsection (g) (Senate
committee printing, page 7, line 9) and substitute the following:
      (g)  If, on the effective date of this Act, the commission
has contracted with a managed care organization to provide health
care services through Medicaid managed care to recipients in a
region, the commission shall award at least one mandatory contract
under Section 533.004, Government Code, as added by this Act, on
the renewal date of that contract.
      (h)  This section takes effect immediately.
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ZAFFIRINI