By:  Zaffirini, Moncrief, Madla                       S.B. No. 1165

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to health care services under the state Medicaid program

 1-2     for children with special health care needs.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4                                  ARTICLE 1

 1-5           SECTION 1.01.  Section 16A, Article 4413(502), Revised

 1-6     Statutes, is amended by amending Subsection (n) and adding

 1-7     Subsections (o), (p), and (q) to read as follows:

 1-8           (n)  In cooperation with the Texas Department of Health, the

 1-9     commission shall:

1-10                 (1)  monitor and assess health care services provided

1-11     under the state Medicaid program to children with special health

1-12     care needs who receive services under a managed care plan or under

1-13     the regular Medicaid program;

1-14                 (2)  adopt specific quality of care standards

1-15     applicable to health care services provided under managed care

1-16     plans to children with special health care needs; and

1-17                 (3)  undertake initiatives to develop, test, and

1-18     implement optimal methods for delivery of appropriate,

1-19     comprehensive, and cost-effective health care services to children

1-20     with special health care needs under managed care plans, including

1-21     the coordination of health care services with educational programs

1-22     and other social and community services, and the promotion of

1-23     family involvement and support.

 2-1           (o)  The commission may not require a child with special

 2-2     health care needs who receives supplemental security income from

 2-3     the federal government to enroll in a managed care plan to receive

 2-4     health care services provided under the state Medicaid program.

 2-5     The commission may require children with special health care needs

 2-6     or classes of children with special health care needs to enroll in

 2-7     a managed care plan or primary care case management program in a

 2-8     geographic service area of the state Medicaid program if the

 2-9     commission:

2-10                 (1)  determines the enrollment will improve the

2-11     availability of appropriate and comprehensive health care services

2-12     to the enrolling child or children; and

2-13                 (2)  establishes procedures under which the commission

2-14     may exempt a child from required enrollment for good cause.

2-15           (p)  In cooperation with the Texas Department of Health, the

2-16     commission by rule shall prescribe qualifications for

2-17     classification of a child as a "child with special health care

2-18     needs" for purposes of Subsections (n) and (o) of this section.  In

2-19     prescribing qualifications, the commission must include children

2-20     with:

2-21                 (1)  severe disabilities;

2-22                 (2)  medically complex or fragile conditions; and

2-23                 (3)  rare, complex, or chronic health care conditions

2-24     that are likely to last at least one year and result in limitations

2-25     of function and activities in comparison with healthy children of

 3-1     the same age.

 3-2           (q)  This section expires September 1, 2001.

 3-3                                  ARTICLE 2

 3-4           SECTION 2.01.  Subchapter B, Chapter 532, Government Code, as

 3-5     added by Acts of the 75th Legislature, Regular Session, 1997,

 3-6     relating to nonsubstantive additions to and corrections in enacted

 3-7     codes, is amended by adding Section 532.112 to read as follows:

 3-8           Sec. 532.112.  CHILDREN WITH SPECIAL HEALTH CARE NEEDS.

 3-9     (a)  In cooperation with the Texas Department of Health, the

3-10     commission shall:

3-11                 (1)  monitor and assess health care services provided

3-12     under the state Medicaid program to children with special health

3-13     care needs who receive services under a managed care plan or under

3-14     the regular Medicaid program;

3-15                 (2)  adopt specific quality of care standards

3-16     applicable to health care services provided under managed care

3-17     plans to children with special health care needs; and

3-18                 (3)  undertake initiatives to develop, test, and

3-19     implement optimal methods for delivery of appropriate,

3-20     comprehensive, and cost-effective health care services to children

3-21     with special health care needs under managed care plans, including

3-22     the coordination of health care services with educational programs

3-23     and other social and community services, and the promotion of

3-24     family involvement and support.

3-25           (b)  The commission may not require a child with special

 4-1     health care needs who receives supplemental security income from

 4-2     the federal government to enroll in a managed care plan to receive

 4-3     health care services provided under the state Medicaid program.

 4-4     The commission may require children with special health care needs

 4-5     or classes of children with special health care needs to enroll in

 4-6     a managed care plan or primary care case management program in a

 4-7     geographic service area of the state Medicaid program if the

 4-8     commission:

 4-9                 (1)  determines the enrollment will improve the

4-10     availability of appropriate and comprehensive health care services

4-11     to the enrolling child or children; and

4-12                 (2)  establishes procedures under which the commission

4-13     may exempt a child from required enrollment for good cause.

4-14           (c)  The commission by rule shall prescribe qualifications

4-15     for classification of a child as a "child with special health care

4-16     needs" for purposes of this section.  In prescribing

4-17     qualifications, the commission must include children with:

4-18                 (1)  severe disabilities;

4-19                 (2)  medically complex or fragile conditions; and

4-20                 (3)  rare, complex, or chronic health care conditions

4-21     that are likely to last at least one year and result in limitations

4-22     of function and activities in comparison with healthy children of

4-23     the same age.

4-24                                  ARTICLE 3

4-25           SECTION 3.01.  Article 1 of this Act takes effect on the

 5-1     first date that it may take effect under Section 39, Article III,

 5-2     Texas Constitution.

 5-3           SECTION 3.02.  If H.B. No. 1845 or S.B. No. 898, Acts of the

 5-4     75th Legislature, Regular Session, 1997, relating to nonsubstantive

 5-5     additions to and corrections in enacted codes, becomes law,

 5-6     Subsections (n), (o), (p), and (q), Section 16A, Article 4413(502),

 5-7     Revised Statutes, as amended or added by Article 1 of this Act,

 5-8     expire September 1, 1997.

 5-9           SECTION 3.03.  Article 2 of this Act takes effect September

5-10     1, 1997, but only if H.B. No. 1845 or S.B. No. 898, Acts of the

5-11     75th Legislature, Regular Session, 1997, relating to nonsubstantive

5-12     additions to and corrections in enacted codes, becomes law.

5-13           SECTION 3.04.  The importance of this legislation and the

5-14     crowded condition of the calendars in both houses create an

5-15     emergency and an imperative public necessity that the

5-16     constitutional rule requiring bills to be read on three several

5-17     days in each house be suspended, and this rule is hereby suspended,

5-18     and that this Act take effect and be in force according to its

5-19     terms, and it is so enacted.