BILL ANALYSIS HUMAN SERVICES HCR 151 By: Naishtat 5-06-97 Committee Report (Amended) BACKGROUND In 1993, the Texas Department of Human Services (DHS) received a federal Medicaid waiver from the Health Care Financing Administration (HCFA). The waiver allowed DHS to serve up to 22,000 clients in community care, through the Community Based Alternatives (CBA) program, rather than in nursing homes. The waiver program was not fully funded by the state for the current biennium, but proved to be in high demand, and has a waiting list of approximately 8,000 individuals. In addition to the need to fund the current 22,000 available slots, there is a need for additional CBA slots under the federal Medicaid waiver. In order to make full use of the current available waiver and to request more slots from HCFA, state law requires DHS to have legislative direction. PURPOSE HCR 151 directs the Texas Department of Human Services to transfer funds as necessary from the nursing home line item to fully fund the Community Based Alternatives (CBA) program. HCR 151 further directs DHS to request additional waiver slots from the Health Care Financing Administration. HCR 151's directions are contingent upon the adoption by DHS' board of new eligibility rules for community care proposed in September, 1996. HCR 151 directs DHS to demonstrate in its budget outcome measures that CBA clients are being diverted from nursing home care in a manner that conforms to state and federal requirements of budget neutrality. RULEMAKING AUTHORITY It is the committee's opinion that this resolution does not delegate any rulemaking authority, but does provide the basis for possible rulemaking authority. EXPLANATION OF AMENDMENTS Adds the Health and Human Services Commission to the Texas Department of Human Services as a commission that may, as appropriate, take steps in implementing the directive. Allows TDHS and HHSC to monitor expenditures by HHS agencies and to the extent possible transfer funds not needed by the HHS agencies to fill the slots in the Community Based Alternatives program. Strikes language in the original bill that allows TDHS to transfer funds from the nursing facility line item to fund additional Community Based Alternative slots. Strikes language requiring the TDHS and HHSC, in showing in it's budget outcome measures a level of certainty that Community Based Alternatives clients are diverted from nursing home care, from conforming to state and federal requirements of budget neutrality.