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.