SRC-JFA S.B. 614 75(R)BILL ANALYSIS


Senate Research CenterS.B. 614
By: Zaffirini
Health & Human Services
3-20-97
Committee Report (Amended)


DIGEST 

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.
This bill would provide that Section 32.036, Human Resources Code,
relating to such Medicaid program payments, is not applicable to the
extent that it conflicts with the Social Security Act.  

PURPOSE

As proposed, 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

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

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.

SUMMARY OF COMMITTEE CHANGES

Amendment 1.

Page 1, lines 7-8, strikes "301 et seq." and replaces with "1396a(a)(32)."