By Zaffirini, et al. S.B. No. 1164
75R5905 SAW-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to Medicaid managed care contract compliance.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter B, Chapter 32, Human Resources Code,
1-5 is amended by adding Section 32.043 to read as follows:
1-6 Sec. 32.043. MANAGED CARE CONTRACT COMPLIANCE. (a) The
1-7 department shall review each managed care organization that has
1-8 contracted with the department to provide medical assistance to
1-9 medical assistance recipients through a managed care plan issued by
1-10 the organization to determine whether the organization is prepared
1-11 to meet its contractual obligations.
1-12 (b) The department shall conduct the review not later than
1-13 the 60th day before the date on which medical assistance recipients
1-14 may begin enrolling in the organization's managed care plan.
1-15 (c) The review shall include an on-site inspection and tests
1-16 of service authorization and claims payment systems, complaint
1-17 processing systems, and any other process or system required by the
1-18 contract.
1-19 (d) The department may delay enrollment of medical
1-20 assistance recipients in a managed care plan if the review reveals
1-21 that the managed care organization is not prepared to meet its
1-22 contractual obligations.
1-23 (e) The department shall identify and review the
1-24 administrative costs of each managed care organization that
2-1 contracts with the department. The department by rule may limit
2-2 these administrative costs.
2-3 SECTION 2. This Act takes effect September 1, 1997, and
2-4 applies only to a contract with a managed care organization that
2-5 the department enters into or renews on or after that date. A
2-6 contract with a managed care organization that the department
2-7 enters into or renews before September 1, 1997, is governed by the
2-8 law as it existed immediately before that date, and that law is
2-9 continued in effect for that purpose.
2-10 SECTION 3. The importance of this legislation and the
2-11 crowded condition of the calendars in both houses create an
2-12 emergency and an imperative public necessity that the
2-13 constitutional rule requiring bills to be read on three several
2-14 days in each house be suspended, and this rule is hereby suspended.