IML S.B. 614 75(R)BILL ANALYSIS


PUBLIC HEALTH
S.B. 614
By: Zaffirini (Berlanga)
4-30-97
Committee Report (Unamended)


BACKGROUND 

Currently, state law permits payments for Medicaid services to be given
only to the individual who performed the medical service and prohibits
assignment or transfer of these payments.  The Social Security Act permits
assignment of Medicaid payments in certain circumstances, such as a
contractual agreement between a hospital and a physician.  The federal law
supersedes the state law in the case of conflict.  The U.S. Fifth Circuit
Court of Appeals has held that this statutory conflict could result in
different outcomes in court cases decided at the state and federal level.  

PURPOSE

S.B. 614 provides that Section 32.036, Human Resources Code, relating to
Medicaid program payments nonassignable and exempt from legal process, is
not applicable to the extent that it conflicts with the Social Security
Act.    

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 32.036, Human Resources Code, by adding
Subsection (c), to provide that this section does not apply to the extent
that it conflicts with the Social Security Act (42 U.S.C. Section
1396a(a)(32)).  

SECTION 2. Emergency clause.
  Effective date: upon passage.