76R11092 AJA-D                           
         By Maxey                                              H.B. No. 2558
         Substitute the following for H.B. No. 2558:
         By Maxey                                          C.S.H.B. No. 2558
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a program providing services to certain children with
 1-3     special health care needs.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 35.001, Health and Safety Code, is
 1-6     amended to read as follows:
 1-7           Sec. 35.001.  SHORT TITLE.  This chapter may be cited as the
 1-8     Children with Special Health Care Needs [Chronically Ill and
 1-9     Disabled Children's] Services Act.
1-10           SECTION 2.  Chapter 35, Health and Safety Code, is amended by
1-11     adding Section 35.0021 to read as follows:
1-12           Sec. 35.0021.  DEFINITIONS.  In this chapter:
1-13                 (1)  "Case management services" includes:
1-14                       (A)  coordinating medical services, marshaling
1-15     available assistance, serving as a liaison between the child and
1-16     the child's family and caregivers, institutional services,
1-17     insurance services, and other services needed to improve the
1-18     well-being of the child and the child's family; and
1-19                       (B)  counseling for the child and the child's
1-20     family about measures to prevent the transmission of AIDS or HIV
1-21     and the availability in the geographic area of any appropriate
1-22     health care services, such as mental health care, psychological
1-23     health care, and social and support services.
1-24                 (2)  "Child with special health care needs" means a
 2-1     person who:
 2-2                       (A)  is younger than 21 years of age and who has
 2-3     a physical or mental condition that:
 2-4                             (i)  causes substantial and ongoing
 2-5     functional limitations in mobility, self-care, communication or
 2-6     social interaction, learning, self-direction, vision, hearing, or
 2-7     capacity for independent living or economic self-sufficiency; and
 2-8                             (ii)  may require, to achieve optimal care
 2-9     for the individual, access to a complex array of public or private
2-10     services:
2-11                                            (a)  the access to or
2-12     coordination of which may exceed the immediate capabilities of the
2-13     family or caregivers;
2-14                                            (b)  the need for which is
2-15     expected to be for the individual's lifetime or an extended
2-16     duration; and
2-17                                            (c)  that require
2-18     individualized planning and coordination; or
2-19                       (B)  has cystic fibrosis.
2-20                 (3)  "Dentist" means a person licensed by the State
2-21     Board of Dental Examiners to practice dentistry in this state.
2-22                 (4)  "Facility" includes a hospital, an ambulatory
2-23     surgical center, and an outpatient clinic.
2-24                 (5)  "Family support services" means support,
2-25     resources, or other assistance provided to the family of a child
2-26     with special health care needs, including services described by
2-27     Part I of the Individuals with Disabilities Education Act (20
 3-1     U.S.C. Section 1400 et seq.), as amended, and permanancy planning,
 3-2     as that term is defined by Section 531.151, Government Code.
 3-3                 (6)  "Other benefit" means a benefit, other than a
 3-4     benefit provided under this chapter, to which a person is entitled
 3-5     for payment of the costs of services provided under the program,
 3-6     including benefits available from:
 3-7                       (A)  an insurance policy, group health plan,
 3-8     health maintenance organization, or prepaid medical or dental care
 3-9     plan;
3-10                       (B)  Title XVIII, Title XIX, or Title XXI of the
3-11     Social Security Act (42 U.S.C. Sections 1395 et seq., 1396 et seq.,
3-12     and 1397aa et seq.), as amended;
3-13                       (C)  the Department of Veterans Affairs;
3-14                       (D)  the Civilian Health and Medical Program of
3-15     the Uniformed Services;
3-16                       (E)  workers' compensation or any other
3-17     compulsory employers' insurance program;
3-18                       (F)  a public program created by federal or state
3-19     law or the ordinances or rules of a municipality or other political
3-20     subdivision of the state, excluding benefits created by the
3-21     establishment of a municipal or county hospital, a joint
3-22     municipal-county hospital, a county hospital authority, a hospital
3-23     district, or the facilities of a publicly supported medical school;
3-24     or
3-25                       (G)  a cause of action for the cost of care,
3-26     including medical care, dental care, facility care, and medical
3-27     supplies, required for a person applying for or receiving services
 4-1     from the department, or a settlement or judgment based on the cause
 4-2     of action, if the expenses are related to the need for services
 4-3     provided under this chapter.
 4-4                 (7)  "Physician" means a person licensed by the Texas
 4-5     State Board of Medical Examiners to practice medicine in this
 4-6     state.
 4-7                 (8)  "Program" means the services program for children
 4-8     with special health care needs.
 4-9                 (9)  "Provider" means a person who delivers services
4-10     purchased by the department for the purposes of this chapter.
4-11                 (10)  "Rehabilitation services" means the process of
4-12     the physical restoration or improvement of a body function
4-13     destroyed or impaired by congenital defect, disease, or injury, and
4-14     includes:
4-15                       (A)  facility care, medical and dental care, and
4-16     occupational and physical therapy;
4-17                       (B)  the provision of braces, artificial
4-18     appliances, durable medical equipment, and other medical supplies;
4-19     and
4-20                       (C)  other types of care specified by the board
4-21     in the program rules.
4-22                 (11)  "Services" means the care, activities, and
4-23     supplies provided under this chapter or program rules, including
4-24     medical care, dental care, facility care, medical supplies,
4-25     occupational and physical therapy, and other care specified by
4-26     program rules.
4-27                 (12)  "Specialty center" means facility and staff that
 5-1     meet minimum standards established under the program and are
 5-2     designated by the board for program use in the comprehensive
 5-3     diagnostic and treatment services for a specific medical condition.
 5-4                 (13)  "Support" means to contribute money or services
 5-5     necessary for a person's maintenance, including food, clothing,
 5-6     shelter, transportation, and health care.
 5-7           SECTION 3.  Section 35.003, Health and Safety Code, is
 5-8     amended to read as follows:
 5-9           Sec. 35.003.  [CHRONICALLY ILL AND DISABLED CHILDREN'S]
5-10     SERVICES PROGRAM FOR CHILDREN WITH SPECIAL HEALTH CARE NEEDS.  (a)
5-11     The program is in the department to provide services to eligible
5-12     [chronically ill and disabled] children with special health care
5-13     needs.  The program shall provide:
5-14                 (1)  early identification of [chronically ill and
5-15     disabled] children with special health care needs;
5-16                 (2)  diagnosis and evaluation of [chronically ill and
5-17     disabled] children with special health care needs;
5-18                 (3)  rehabilitation services to [chronically ill and
5-19     disabled] children with special health care needs;
5-20                 (4)  development and improvement of standards and
5-21     services for [chronically ill and disabled] children with special
5-22     health care needs; [and]
5-23                 (5)  case management services;
5-24                 (6)  other family support services; and
5-25                 (7)  access to health benefits plan coverage under
5-26     Section 35.0031.
5-27           (b)  The board by rule shall:
 6-1                 (1)  specify the type, amount, and duration of services
 6-2     to be provided under this chapter;
 6-3                 [(2)  specify the diseases and conditions covered by
 6-4     the program;] and
 6-5                 (2) [(3)]  permit the payment of insurance premiums for
 6-6     eligible children.
 6-7           (c)  If budgetary limitations exist, the board by rule shall
 6-8     establish a system of priorities relating to the types of services
 6-9     or the classes of persons eligible for the services.  A waiting
6-10     list of eligible persons may be established if necessary for the
6-11     program to remain within the budgetary limitations.
6-12           (d)  The program may provide:
6-13                 (1)  transportation and subsistence for an eligible
6-14     [chronically ill and disabled] child with special health care needs
6-15     and the child's parent, managing conservator, guardian, or other
6-16     adult caretaker approved by the program to obtain services provided
6-17     by the program; and
6-18                 (2)  the following services to an eligible child with
6-19     special health care needs [chronically ill and disabled children]
6-20     who dies [die] in an approved facility outside the child's
6-21     municipality of residence while receiving program services [for a
6-22     condition covered by the program]:
6-23                       (A)  the transportation of the child's remains,
6-24     and the transportation of a parent or other person accompanying the
6-25     remains, from the facility to the place of burial in this state
6-26     that is designated by the parent or other person legally
6-27     responsible for interment;
 7-1                       (B)  the expense of embalming, if required for
 7-2     transportation;
 7-3                       (C)  the cost of a coffin purchased at a minimum
 7-4     price, if a coffin is required for transportation; and
 7-5                       (D)  any other necessary expenses directly
 7-6     related to the care and return of the child's remains to the place
 7-7     of burial in this state.
 7-8           (e)  The department may:
 7-9                 (1)  develop methods to improve the efficiency and
7-10     effectiveness of the program; and
7-11                 (2)  conduct pilot studies[; and]
7-12                 [(3)  provide services only for conditions specified by
7-13     this chapter or by the board].
7-14           (f)  The program is separate from the financial or medical
7-15     assistance program established by Chapters 31 and 32, Human
7-16     Resources Code.
7-17           SECTION 4.  Chapter 35, Health and Safety Code, is amended by
7-18     adding Sections 35.0031, 35.0032, 35.0033, 35.0034, and 35.0035 to
7-19     read as follows:
7-20           Sec. 35.0031.  HEALTH BENEFITS PLAN COVERAGE FOR CERTAIN
7-21     ELIGIBLE CHILDREN.  The department shall develop and implement a
7-22     health benefits plan to provide coverage for a child who:
7-23                 (1)  is eligible for services under this chapter; and
7-24                 (2)  is not eligible for assistance under:
7-25                       (A)  a program established under Title XXI of the
7-26     Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended;
7-27     or
 8-1                       (B)  the medical assistance program under Chapter
 8-2     32, Human Resources Code.
 8-3           Sec. 35.0032.  BENEFITS COVERAGE REQUIRED.  To the extent
 8-4     possible, the health benefits plan required by Section 35.0031 must
 8-5     provide benefits comparable to the benefits provided under the
 8-6     state child health plan established by this state to implement
 8-7     Title XXI of the Social Security Act (42 U.S.C.  Section 1397aa et
 8-8     seq.), as amended.
 8-9           Sec. 35.0033.  HEALTH BENEFITS PLAN PROVIDER.  (a)  A health
8-10     benefits plan provider who provides coverage for benefits under
8-11     Section 35.0031 must:
8-12                 (1)  hold a certificate of authority or other
8-13     appropriate license issued by the Texas Department of Insurance
8-14     that authorizes the health benefits plan provider to provide the
8-15     type of coverage to be offered under Section 35.0031; and
8-16                 (2)  satisfy, except as provided by Subsection (b), any
8-17     other applicable requirement of the Insurance Code or another
8-18     insurance law of this state.
8-19           (b)  Except as required by the department, a health benefits
8-20     plan provider under this chapter is not subject to a law that
8-21     requires coverage or the offer of coverage of a health care service
8-22     or benefit.
8-23           Sec. 35.0034.  COST-SHARING PAYMENTS.  (a)  Except as
8-24     provided by Subsection (b), the department may not require a child
8-25     who is provided health benefits plan coverage under Section 35.0031
8-26     and who meets the income eligibility requirement of the medical
8-27     assistance program under Chapter 32, Human Resources Code, to pay a
 9-1     premium, deductible, coinsurance, or other cost-sharing payment as
 9-2     a condition of health benefits plan coverage under this chapter.
 9-3           (b)  The department may require a child described by
 9-4     Subsection (a) to pay a co-payment as a condition of health
 9-5     benefits plan coverage under Section 35.0031 that is equal to any
 9-6     co-payment required under the state child health plan established
 9-7     by this state to implement Title XXI of the Social Security Act (42
 9-8     U.S.C.  Section 1397aa et seq.), as amended.
 9-9           (c)  The department may require a child who is provided
9-10     health benefits plan coverage under Section 35.0031 and who meets
9-11     the income eligibility requirement of a program established under
9-12     Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et
9-13     seq.), as amended, to pay a premium, deductible, coinsurance, or
9-14     other cost-sharing payment as a condition of health benefits plan
9-15     coverage.  The payment must be equal to any premium, deductible,
9-16     coinsurance, or other cost-sharing payment required under the state
9-17     child health plan established by this state to implement Title XXI
9-18     of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as
9-19     amended.
9-20           Sec. 35.0035.  DISALLOWANCE OF MATCHING FUNDS FROM FEDERAL
9-21     GOVERNMENT.  Expenditures made to provide health benefits plan
9-22     coverage under Section 35.0031 may not be included for the purpose
9-23     of determining the state children's health insurance expenditures,
9-24     as that term is defined by 42 U.S.C.  Section 1397ee(d)(2)(B), as
9-25     amended.
9-26           SECTION 5.  Section 35.004, Health and Safety Code, is
9-27     amended by adding Subsection (j) to read as follows:
 10-1          (j)  This section does not apply to services for which
 10-2    coverage is provided under the health benefits plan established
 10-3    under Section 35.0031.
 10-4          SECTION 6.  Section 35.005, Health and Safety Code, is
 10-5    amended to read as follows:
 10-6          Sec. 35.005.  ELIGIBILITY FOR SERVICES.  (a)  The board by
 10-7    rule shall:
 10-8                (1)  define medical, financial, and other criteria for
 10-9    eligibility to receive services; and
10-10                (2)  establish a system for verifying eligibility
10-11    information submitted by an applicant for or recipient of services.
10-12          (b)  In defining medical and financial criteria for
10-13    eligibility under Subsection (a), the board may not:
10-14                (1)  establish an exclusive list of coverable medical
10-15    conditions; or
10-16                (2)  consider as a source of support to provide
10-17    services assets legally owned or available to a child's household.
10-18          (c) [(b)]  A child is not eligible to receive rehabilitation
10-19    services unless:
10-20                (1)  the child is a resident of this state;
10-21                (2)  at least one physician or dentist certifies to the
10-22    department that the physician or dentist has examined the child and
10-23    finds the child to be a [chronically ill and disabled] child with
10-24    special health care needs whose disability meets the medical
10-25    criteria established by the board;
10-26                (3)  the certifying physician or dentist has reason to
10-27    expect that services will improve the child's condition or will
 11-1    extend the child's ability to function independently;
 11-2                (4)  the department determines that the persons who
 11-3    have any legal obligation to provide services for the child are
 11-4    unable to pay for the entire cost of the services; and
 11-5                (5)  the child meets all other eligibility criteria
 11-6    established by board rules.
 11-7          (d) [(c)]  A child is not eligible to receive services, other
 11-8    than rehabilitation services, unless the child:
 11-9                (1)  is a resident of this state; and
11-10                (2)  meets all other eligibility criteria established
11-11    by board rules.
11-12          SECTION 7.  Section 35.007(e), Health and Safety Code, is
11-13    amended to read as follows:
11-14          (e)  The department may collect the cost of services provided
11-15    under this chapter directly in accordance with [from] Title XVIII,
11-16    [or] Title XIX, or Title XXI of the Social Security Act (42 U.S.C.
11-17    Sections 1395 et seq., [and] 1396 et seq., and 1397aa et seq.), as
11-18    amended, any personal insurance, a health maintenance organization,
11-19    or any other third party who has a legal obligation to pay other
11-20    benefits.
11-21          SECTION 8.  Sections 35.012(a) and (b), Health and Safety
11-22    Code, are amended to read as follows:
11-23          (a)  The department may take a census, make surveys, and
11-24    establish permanent records of [chronically ill and disabled]
11-25    children with special health care needs.
11-26          (b)  The department shall maintain a record of orthotic and
11-27    prosthetic devices, durable medical equipment, and medical supplies
 12-1    purchased by the department for [chronically ill and disabled]
 12-2    children with special health care needs.  Those items are not
 12-3    state-owned personal property and are exempt from the personal
 12-4    property inventory requirements of Subtitle D, Title 10, Government
 12-5    Code.
 12-6          SECTION 9.  The heading of Chapter 35, Health and Safety
 12-7    Code, is amended to read as follows:
 12-8           CHAPTER 35.  CHILDREN WITH SPECIAL HEALTH CARE NEEDS
 12-9            [CHRONICALLY ILL AND DISABLED CHILDREN'S SERVICES]
12-10          SECTION 10.  Section 33.031, Health and Safety Code, is
12-11    amended to read as follows:
12-12          Sec. 33.031.  COORDINATION WITH CHILDREN WITH SPECIAL HEALTH
12-13    CARE NEEDS [CHRONICALLY ILL AND DISABLED CHILDREN'S] SERVICES.  (a)
12-14    All newborn children and other individuals under 21 years of age
12-15    who have been screened, have been found to be presumptively
12-16    positive through the newborn screening program, and may be
12-17    financially eligible may be referred to the department's
12-18    [chronically ill and disabled children's] services program for
12-19    children with special health care needs.
12-20          (b)  An individual who is determined to be eligible for
12-21    services under the [chronically ill and disabled children's]
12-22    services program for children with special health care needs shall
12-23    be given approved services through that program.  An individual who
12-24    does not meet that eligibility criteria shall be referred to the
12-25    newborn screening program for a determination of eligibility for
12-26    newborn screening program services.
12-27          SECTION 11.  Section 109.066, Health and Safety Code, is
 13-1    amended to read as follows:
 13-2          Sec. 109.066.  TEXAS DEPARTMENT OF HEALTH PROGRAMS.  (a)  The
 13-3    department may use appropriated funds, in accordance with the
 13-4    General Appropriations Act, to purchase coverage under a health
 13-5    benefit plan provided through the program for children who are
 13-6    eligible for coverage for the program if:
 13-7                (1)  the children receive health care benefits under
 13-8    the [chronically ill and disabled children's] services program for
 13-9    children with special health care needs or another federally funded
13-10    or state-funded program, other than the state Medicaid program,
13-11    that is administered by the department;
13-12                (2)  provision of the benefits through a health benefit
13-13    plan provided through the program is a more cost-effective means of
13-14    providing some or all of the benefits described by Subdivision (1);
13-15    and
13-16                (3)  no benefit or service provided to the children is
13-17    eliminated or adversely affected as a result of the provision of
13-18    the benefits through the program.
13-19          (b)  Services provided to children under a federally funded
13-20    or state-funded program administered by the department, including
13-21    the [chronically ill and disabled children's] program for children
13-22    with special health care needs, may not be reduced or eliminated
13-23    because some or all of the services are provided through the
13-24    program or otherwise provided because of the establishment of the
13-25    corporation or the program.
13-26          SECTION 12.  Section 14(b)(2), Article 21.58A, Insurance
13-27    Code, is amended to read as follows:
 14-1                (2)  Except as provided by Subsection (g) of this
 14-2    section, this article shall not apply to the Texas Medicaid
 14-3    Program, the [chronically ill and disabled children's] services
 14-4    program for children with special health care needs created
 14-5    pursuant to Chapter 35, Health and Safety Code, any program
 14-6    administered under Title 2, Human Resources Code, any program of
 14-7    the Texas Department of Mental Health and Mental Retardation, or
 14-8    any program of the Texas Department of Criminal Justice.
 14-9          SECTION 13.  Section 35.002, Health and Safety Code, is
14-10    repealed.
14-11          SECTION 14.  (a)  This Act takes effect January 1, 2001, and
14-12    applies only to delivery of services under Chapter 35, Health and
14-13    Safety Code, as amended by this Act, on or after July 1, 2001.
14-14          (b)  The Texas Department of Health shall implement the
14-15    health benefits plan required by Section 35.0031, Health and Safety
14-16    Code, as added by this Act, not later than July 1, 2001.
14-17          (c)  The Texas Board of Health shall adopt all rules
14-18    necessary to implement the changes in law made by this Act not
14-19    later than July 1, 2001.
14-20          SECTION 15.  The importance of this legislation and the
14-21    crowded condition of the calendars in both houses create an
14-22    emergency and an imperative public necessity that the
14-23    constitutional rule requiring bills to be read on three several
14-24    days in each house be suspended, and this rule is hereby suspended.