By Zaffirini                                     S.B. No. 613

      75R3447 KKA-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to reduction of overpayments in the state Medicaid

 1-3     program.

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

 1-5           SECTION 1.  AMENDMENT.  Subchapter B, Chapter 32, Human

 1-6     Resources Code, is amended by adding Sections 32.043-32.045 to read

 1-7     as follows:

 1-8           Sec. 32.043.  DUAL MEDICAID AND MEDICARE COVERAGE.  (a)  At

 1-9     least annually the department shall identify each individual

1-10     receiving medical assistance under the medical assistance program

1-11     who is eligible to receive similar assistance under the Medicare

1-12     program.

1-13           (b)  The department shall analyze claims submitted for

1-14     payment for a service provided under the medical assistance program

1-15     to an individual identified under Subsection (a) to ensure that

1-16     payment is not made under the medical assistance program if the

1-17     service is covered for the individual under the Medicare program.

1-18           Sec. 32.044.  MISDIRECTED BILLING.  To the extent authorized

1-19     by federal law, the department shall develop a procedure for:

1-20                 (1)  matching claims for payment for medical assistance

1-21     provided under the medical assistance program against data

1-22     available from other entities, including the Veterans

1-23     Administration and nursing facilities, to determine  alternative

1-24     responsibility for payment of the claims;  and

 2-1                 (2)  ensuring that the appropriate entity bears the

 2-2     cost of a claim.

 2-3           Sec. 32.045.  ENHANCED REIMBURSEMENT.  The department shall

 2-4     develop a procedure for:

 2-5                 (1)  identifying each service provided under the

 2-6     medical assistance program for which the state is eligible to

 2-7     receive enhanced reimbursement of costs from the federal

 2-8     government; and

 2-9                 (2)  ensuring that the state seeks the highest level of

2-10     federal reimbursement available for each service provided.

2-11           SECTION 2.  DETERMINATION OF ELIGIBILITY FOR ENHANCED

2-12     REIMBURSEMENT.  (a)  The Texas Department of Health shall identify

2-13     services provided under the state  Medicaid program for the period

2-14     beginning December 31, 1989, and ending immediately before the

2-15     effective date of this Act for which the state was eligible but did

2-16     not receive enhanced reimbursement of costs at a 90 percent rate

2-17     from the federal government.

2-18           (b)  For the period specified in Subsection (a) of this

2-19     section, the Texas Department of Health shall seek from the federal

2-20     government all reimbursements to which the state is entitled.

2-21           SECTION 3.  REVIEW OF SERVICE PROVIDER BILLING PRACTICES.

2-22     (a)  The Texas Department of Health shall conduct an automated

2-23     review of physician,  laboratory, and radiology services to

2-24     identify improper billing practices designed to inflate a service

2-25     provider's claim for payment for services provided under the state

2-26     Medicaid program.

2-27           (b)  After completing the review required by Subsection (a)

 3-1     of this section, the Texas Department of Health shall require the

 3-2     entity that administers the state Medicaid program on behalf of the

 3-3     department to modify the entity's claims processing and monitoring

 3-4     procedures and computer technology as necessary to prevent improper

 3-5     billing by service providers.

 3-6           SECTION 4.  STATE MEDICAID PLAN AMENDMENT; LIMITATION ON

 3-7     BENEFITS.  (a)  As soon as possible after the effective date of

 3-8     this Act, the Health and Human Services Commission shall  submit an

 3-9     amendment to the state's Medicaid plan authorizing the state to

3-10     limit payment under the state Medicaid program of Medicare

3-11     deductible and co-insurance amounts associated with a service for a

3-12     person entitled to receive both Medicaid and Medicare benefits to

3-13     the amount that the state would have paid for the service under the

3-14     state Medicaid program.

3-15           (b)  On receipt of approval of the amendment, the Health and

3-16     Human Services Commission shall ensure that the payments described

3-17     by Subsection (a) of this section are limited as authorized by the

3-18     amendment.

3-19           SECTION 5.  EMERGENCY.  The importance of this legislation

3-20     and the crowded condition of the calendars in both houses create an

3-21     emergency and an imperative public necessity that the

3-22     constitutional rule requiring bills to be read on three several

3-23     days in each house be suspended, and this rule is hereby suspended,

3-24     and that this Act take effect and be in force from and after its

3-25     passage, and it is so enacted.