SRC-CDH S.B. 413 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 413
By: Moncrief
Health & Human Services
2-11-97
As Filed


DIGEST 

Currently, significant changes in the Medicaid system, especially the
shift to managed care, make it essential for the state to involve Medicaid
recipients and providers in the development of new rules, policies, and
procedures.  By requiring the Health and Human Services Commission to
consult with the Medical Care and Hospital Payment Advisory Committees, as
well as use the negotiated rulemaking process recommended by the
comptroller, this legislation will ensure broad-based involvement in
formulation of new policy.  In addition, in 1991 the legislature imposed
an assessment on certain hospitals for the purpose of funding the
disproportionate share program; however, following a change in federal
rules in 1993, the Department of Health began using an alternative method
of funding.  The assessment is no longer necessary, and S.B. 413 deletes
that part of the statute.    

PURPOSE

As proposed, S.B. 413 establishes the administration of the Health and
Human Services Commission and the administration and funding of the state
Medicaid program.   

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Health and Human Services
Commission in SECTION 2 (Section 531.034(d), Government Code) and to the
Texas Department of Human Servies in SECTION 3 (Section 32.028(e), Human
Resources Code) of this bill.   

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 531.012, Government Code, to require the
commissioner of health and human services (commissioner) to utilize the
medical and hospital care advisory committees authorized by Section
32.022, Human Resources Code, to assist the Health and Human Services
Commission (commission) with the development of Medicaid policies,
procedures, eligibility standards and benefits, provider payments, and
educational programs for Medicaid recipients and providers.  Authorizes
the commissioner to appoint other advisory committees as needed. 

SECTION 2. Amends Section 531.034, Government Code, by adding Subsection
(d), to authorize the commission, in the development of commission rules,
to utilize negotiated rulemaking procedures and to retain private or
neutral state-employed facilitators trained in negotiated rulemaking and
mediation to assist the commission with the negotiated rulemaking. 

SECTION 3. Amends Section 32.028, Human Resources Code, by adding
Subsection (e), to authorize the Texas Department of Human Services
(department), in the development of rules, to utilize negotiated
rulemaking procedures and to retain private or neutral state-employed
facilitators trained in negotiated rulemaking and mediation to assist the
department with negotiated rulemaking. 

SECTION 4. Repealer:  Chapter 2, Acts of the 72nd Legislature, 1st Called
Session, 1991, Article 4494q-2, V.T.C.S. (Senate Bill No. 82). 

SECTION 5. Effective date:  September 1, 1997.

SECTION 6. Emergency clause.