Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Gutierrez                                    H.B. No. 3524

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the provisions of reimbursement for prescription

 1-3     services under the state Medicaid program.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 32.028, Human Resources Code, is amended

 1-6     by adding a new Subsection (d) and re-lettering the rest of the

 1-7     section to read as follows:

 1-8           (d)  The fee, charge, or rate of reimbursement for all

 1-9     medication dispensed under the Texas Department of Health, Vendor

1-10     Drug Program, shall be established by the department to include

1-11     adequate fees for the reimbursement of drug costs, dispensing

1-12     costs, inventory incentives, and delivery fees.

1-13           [(d)] (e)  The department in its adoption of reasonable rules

1-14     and standards governing the determination of rates paid for

1-15     inpatient hospital services on a prospective payment basis shall:

1-16                 (1)  assure that the payment rates are reasonable and

1-17     adequate to meet the costs incurred by the hospital in rendering

1-18     services to Medicaid recipients;

1-19                 (2)  assure that the prospective payment methodology

1-20     for hospital services sets the hospital-specific standardized

1-21     amount at a minimum level of $1,600; and

1-22                 (3)  assure that the adjustment in payment rates for

1-23     hospital services furnished by disproportionate share hospitals

1-24     takes into account the essential role of rural hospitals in

 2-1     providing access to hospital services to medically indigent persons

 2-2     in rural areas of the state.

 2-3           SECTION 2.  As soon as possible after the effective date of

 2-4     this act, the Health and Human Services Commission shall submit an

 2-5     amendment to the state's Medicaid plan authorizing the state to

 2-6     develop a formula for prescription drug medication in accordance

 2-7     with Section 32.028, Human Resources Code, as amended by this Act.

 2-8           SECTION 3.  This Act takes effect September 1, 1997.

 2-9           SECTION 4.  The importance of this legislation and the

2-10     crowded condition of the calendars in both houses create an

2-11     emergency and an imperative public necessity that the

2-12     constitutional rule requiring bills to be read on three several

2-13     days in each house be suspended, and this rule is hereby suspended.