LSL H.B. 1634 75(R)    BILL ANALYSIS


PUBLIC HEALTH
H.B. 1634
By: Berlanga
3-19-97
Committee Report (Unamended)



BACKGROUND 

The U.S. Fifth Circuit Court of Appeals has found a conflict between
federal and state law relating to the assignment of payments owed to
providers for services provided to Medicaid recipients.  The Court found
that the state statute was broader and more rigid than the corresponding
federal statute, and cases decided under the two laws could have different
outcomes.  Where a conflict exists, state law must yield to federal law.   

The state law has a blanket prohibition of all assignments and transfer of
payment.  It also provides that the payments are not subject to execution,
levy, attachment, garnishment or any other legal process or operation of
any insolvency law.  The federal law contains exceptions to these
prohibitions.  It allows assignment to employers of providers; to
governmental agencies, by order of a court of competent jurisdiction; and
to agents of the provider, if done under an agreement where the
compensation received by the agent is unrelated to the amount collected.
It also allows payments to be made to a physician who submits a claim for
services provided by another physician on call or covering for that
person, as long as the physician providing the service is identified on
the claim. 

PURPOSE

HB 1634 conforms the state law to federal law regarding assignment of
Medicaid payments. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

 SECTION 1.  Amends Sec. 32.036, Human Resources Code, by adding
Subsection (c) to specify that this section, regarding medical assistance
payments, does not apply to the extent that it conflicts with the Social
Security Act. 

SECTION 2.  Emergency clause.  Provides that this Act takes effect upon
passage.