By Maxey                                              H.B. No. 2558
         76R8795 AJA-D                           
                                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)  "AIDS" has the meaning assigned by Section 81.101.
1-14                 (2)  "Case management services" includes:
1-15                       (A)  coordinating medical services, marshaling
1-16     available assistance, serving as a liaison between the child and
1-17     the child's family and caregivers, institutional services,
1-18     insurance services, and other services needed to improve the
1-19     well-being of the child and the child's family; and
1-20                       (B)  counseling for the child and the child's
1-21     family about measures to prevent the transmission of AIDS or HIV
1-22     and the availability in the geographic area of any appropriate
1-23     health care services, such as mental health care, psychological
1-24     health care, and social and support services.
 2-1                 (3)  "Child with special health care needs" means a
 2-2     person who is younger than 21 years of age and who has a physical
 2-3     or mental condition that:
 2-4                       (A)  causes substantial and ongoing functional
 2-5     limitations in mobility, self-care, communication or social
 2-6     interaction, learning, self-direction, vision, hearing, or capacity
 2-7     for independent living or economic self-sufficiency; and
 2-8                       (B)  may require, to achieve optimal care for the
 2-9     individual, access to a complex array of public or private
2-10     services:
2-11                             (i)  the access to or coordination of which
2-12     may exceed the immediate capabilities of the family or caregivers;
2-13                             (ii)  the need for which is expected to be
2-14     for the individual's lifetime or an extended duration; and
2-15                             (iii)  that require individualized planning
2-16     and coordination.
2-17                 (4)  "Dentist" means a person licensed by the State
2-18     Board of Dental Examiners to practice dentistry in this state.
2-19                 (5)  "Facility" includes a hospital, an ambulatory
2-20     surgical center, and an outpatient clinic.
2-21                 (6)  "Family support services" means support,
2-22     resources, or other assistance provided to the family of a child
2-23     with special health care needs, including services described by
2-24     Part I of the Individuals with Disabilities Education Act (20
2-25     U.S.C. Section 1400 et seq.), as amended, and permanancy planning,
2-26     as that term is defined by Section 531.151, Government Code.
2-27                 (7)  "HIV" has the meaning assigned by Section 81.101.
 3-1                 (8)  "Other benefit" means a benefit, other than a
 3-2     benefit provided under this chapter, to which a person is entitled
 3-3     for payment of the costs of services provided under the program,
 3-4     including benefits available from:
 3-5                       (A)  an insurance policy, group health plan,
 3-6     health maintenance organization, or prepaid medical or dental care
 3-7     plan;
 3-8                       (B)  Title XVIII, Title XIX, or Title XXI of the
 3-9     Social Security Act (42 U.S.C. Sections 1395 et seq., 1396 et seq.,
3-10     and 1397aa et seq.), as amended;
3-11                       (C)  the Department of Veterans Affairs;
3-12                       (D)  the Civilian Health and Medical Program of
3-13     the Uniformed Services;
3-14                       (E)  workers' compensation or any other
3-15     compulsory employers' insurance program;
3-16                       (F)  a public program created by federal or state
3-17     law or the ordinances or rules of a municipality or other political
3-18     subdivision of the state, excluding benefits created by the
3-19     establishment of a municipal or county hospital, a joint
3-20     municipal-county hospital, a county hospital authority, a hospital
3-21     district, or the facilities of a publicly supported medical school;
3-22     or
3-23                       (G)  a cause of action for the cost of care,
3-24     including medical care, dental care, facility care, and medical
3-25     supplies, required for a person applying for or receiving services
3-26     from the department, or a settlement or judgment based on the cause
3-27     of action, if the expenses are related to the need for services
 4-1     provided under this chapter.
 4-2                 (9)  "Physician" means a person licensed by the Texas
 4-3     State Board of Medical Examiners to practice medicine in this
 4-4     state.
 4-5                 (10)  "Program" means the services program for children
 4-6     with special health care needs.
 4-7                 (11)  "Provider" means a person who delivers services
 4-8     purchased by the department for the purposes of this chapter.
 4-9                 (12)  "Rehabilitation services" means the process of
4-10     the physical restoration or improvement of a body function
4-11     destroyed or impaired by congenital defect, disease, or injury, and
4-12     includes:
4-13                       (A)  facility care, medical and dental care, and
4-14     occupational and physical therapy;
4-15                       (B)  the provision of braces, artificial
4-16     appliances, durable medical equipment, and other medical supplies;
4-17     and
4-18                       (C)  other types of care specified by the board
4-19     in the program rules.
4-20                 (13)  "Services" means the care, activities, and
4-21     supplies provided under this chapter or program rules, including
4-22     medical care, dental care, facility care, medical supplies,
4-23     occupational and physical therapy, and other care specified by
4-24     program rules.
4-25                 (14)  "Specialty center" means facility and staff that
4-26     meet minimum standards established under the program and are
4-27     designated by the board for program use in the comprehensive
 5-1     diagnostic and treatment services for a specific medical condition.
 5-2                 (15)  "Support" means to contribute money or services
 5-3     necessary for a person's maintenance, including food, clothing,
 5-4     shelter, transportation, and health care.
 5-5           SECTION 3.  Section 35.003, Health and Safety Code, is
 5-6     amended to read as follows:
 5-7           Sec. 35.003.  [CHRONICALLY ILL AND DISABLED CHILDREN'S]
 5-8     SERVICES PROGRAM FOR CHILDREN WITH SPECIAL HEALTH CARE NEEDS.  (a)
 5-9     The program is in the department to provide services to eligible
5-10     [chronically ill and disabled] children with special health care
5-11     needs.  The program shall provide:
5-12                 (1)  early identification of [chronically ill and
5-13     disabled] children with special health care needs;
5-14                 (2)  diagnosis and evaluation of [chronically ill and
5-15     disabled] children with special health care needs;
5-16                 (3)  rehabilitation services to [chronically ill and
5-17     disabled] children with special health care needs;
5-18                 (4)  development and improvement of standards and
5-19     services for [chronically ill and disabled] children with special
5-20     health care needs; [and]
5-21                 (5)  case management services;
5-22                 (6)  other family support services; and
5-23                 (7)  access to health benefits plan coverage under
5-24     Section 35.0031.
5-25           (b)  The board by rule shall:
5-26                 (1)  specify the type, amount, and duration of services
5-27     to be provided under this chapter;
 6-1                 [(2)  specify the diseases and conditions covered by
 6-2     the program;] and
 6-3                 (2) [(3)]  permit the payment of insurance premiums for
 6-4     eligible children.
 6-5           (c)  If budgetary limitations exist, the board by rule shall
 6-6     establish a system of priorities relating to the types of services
 6-7     or the classes of persons eligible for the services.  A waiting
 6-8     list of eligible persons may be established if necessary for the
 6-9     program to remain within the budgetary limitations.
6-10           (d)  The program may provide:
6-11                 (1)  transportation and subsistence for an eligible
6-12     [chronically ill and disabled] child with special health care needs
6-13     and the child's parent, managing conservator, guardian, or other
6-14     adult caretaker approved by the program to obtain services provided
6-15     by the program; and
6-16                 (2)  the following services to an eligible child with
6-17     special health care needs [chronically ill and disabled children]
6-18     who dies [die] in an approved facility outside the child's
6-19     municipality of residence while receiving program services [for a
6-20     condition covered by the program]:
6-21                       (A)  the transportation of the child's remains,
6-22     and the transportation of a parent or other person accompanying the
6-23     remains, from the facility to the place of burial in this state
6-24     that is designated by the parent or other person legally
6-25     responsible for interment;
6-26                       (B)  the expense of embalming, if required for
6-27     transportation;
 7-1                       (C)  the cost of a coffin purchased at a minimum
 7-2     price, if a coffin is required for transportation; and
 7-3                       (D)  any other necessary expenses directly
 7-4     related to the care and return of the child's remains to the place
 7-5     of burial in this state.
 7-6           (e)  The department may:
 7-7                 (1)  develop methods to improve the efficiency and
 7-8     effectiveness of the program; and
 7-9                 (2)  conduct pilot studies[; and]
7-10                 [(3)  provide services only for conditions specified by
7-11     this chapter or by the board].
7-12           (f)  The program is separate from the financial or medical
7-13     assistance program established by Chapters 31 and 32, Human
7-14     Resources Code.
7-15           SECTION 4.  Chapter 35, Health and Safety Code, is amended by
7-16     adding Sections 35.0031, 35.0032, 35.0033, 35.0034, and 35.0035 to
7-17     read as follows:
7-18           Sec. 35.0031.  HEALTH BENEFITS PLAN COVERAGE FOR CERTAIN
7-19     ELIGIBLE CHILDREN.  The department shall develop and implement a
7-20     health benefits plan to provide coverage for a child who:
7-21                 (1)  is eligible for services under this chapter; and
7-22                 (2)  is not eligible for assistance under:
7-23                       (A)  a program established under Title XXI of the
7-24     Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended;
7-25     or
7-26                       (B)  the medical assistance program under Chapter
7-27     32, Human Resources Code.
 8-1           Sec. 35.0032.  BENEFITS COVERAGE REQUIRED.  To the extent
 8-2     possible, the health benefits plan required by Section 35.0031 must
 8-3     provide benefits comparable to the benefits provided under the
 8-4     state child health plan established by this state to implement
 8-5     Title XXI of the Social Security Act (42 U.S.C.  Section 1397aa et
 8-6     seq.), as amended.
 8-7           Sec. 35.0033.  HEALTH BENEFITS PLAN PROVIDER.  (a)  A health
 8-8     benefits plan provider who provides coverage for benefits under
 8-9     Section 35.0031 must:
8-10                 (1)  hold a certificate of authority or other
8-11     appropriate license issued by the Texas Department of Insurance
8-12     that authorizes the health benefits plan provider to provide the
8-13     type of coverage to be offered under Section 35.0031; and
8-14                 (2)  satisfy, except as provided by Subsection (b), any
8-15     other applicable requirement of the Insurance Code or another
8-16     insurance law of this state.
8-17           (b)  Except as required by the department, a health benefits
8-18     plan provider under this chapter is not subject to a law that
8-19     requires coverage or the offer of coverage of a health care service
8-20     or benefit.
8-21           Sec. 35.0034.  COST-SHARING PAYMENTS.  (a)  Except as
8-22     provided by Subsection (b), the department may not require a child
8-23     who is provided health benefits plan coverage under Section 35.0031
8-24     and who meets the income eligibility requirement of the medical
8-25     assistance program under Chapter 32, Human Resources Code, to pay a
8-26     premium, deductible, coinsurance, or other cost-sharing payment as
8-27     a condition of health benefits plan coverage under this chapter.
 9-1           (b)  The department may require a child described by
 9-2     Subsection (a) to pay a co-payment as a condition of health
 9-3     benefits plan coverage under Section 35.0031 that is equal to any
 9-4     co-payment required under the state child health plan established
 9-5     by this state to implement Title XXI of the Social Security Act (42
 9-6     U.S.C.  Section 1397aa et seq.), as amended.
 9-7           (c)  The department may require a child who is provided
 9-8     health benefits plan coverage under Section 35.0031 and who meets
 9-9     the income eligibility requirement of a program established under
9-10     Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et
9-11     seq.), as amended, to pay a premium, deductible, coinsurance, or
9-12     other cost-sharing payment as a condition of health benefits plan
9-13     coverage.  The payment must be equal to any premium, deductible,
9-14     coinsurance, or other cost-sharing payment required under the state
9-15     child health plan established by this state to implement Title XXI
9-16     of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as
9-17     amended.
9-18           Sec. 35.0035.  DISALLOWANCE OF MATCHING FUNDS FROM FEDERAL
9-19     GOVERNMENT.  Expenditures made to provide health benefits plan
9-20     coverage under Section 35.0031 may not be included for the purpose
9-21     of determining the state children's health insurance expenditures,
9-22     as that term is defined by 42 U.S.C.  Section 1397ee(d)(2)(B), as
9-23     amended.
9-24           SECTION 5.  Section 35.004, Health and Safety Code, is
9-25     amended by adding Subsection (j) to read as follows:
9-26           (j)  This section does not apply to services for which
9-27     coverage is provided under the health benefits plan established
 10-1    under Section 35.0031.
 10-2          SECTION 6.  Section 35.005, Health and Safety Code, is
 10-3    amended to read as follows:
 10-4          Sec. 35.005.  ELIGIBILITY FOR SERVICES.  (a)  The board by
 10-5    rule shall:
 10-6                (1)  define medical, financial, and other criteria for
 10-7    eligibility to receive services; and
 10-8                (2)  establish a system for verifying eligibility
 10-9    information submitted by an applicant for or recipient of services.
10-10          (b)  In defining medical and financial criteria for
10-11    eligibility under Subsection (a), the board may not:
10-12                (1)  establish an exclusive list of coverable medical
10-13    conditions; or
10-14                (2)  consider as a source of support to provide
10-15    services assets legally owned or available to a child's household.
10-16          (c) [(b)]  A child is not eligible to receive rehabilitation
10-17    services unless:
10-18                (1)  the child is a resident of this state;
10-19                (2)  at least one physician or dentist certifies to the
10-20    department that the physician or dentist has examined the child and
10-21    finds the child to be a [chronically ill and disabled] child with
10-22    special health care needs whose disability meets the medical
10-23    criteria established by the board;
10-24                (3)  the certifying physician or dentist has reason to
10-25    expect that services will improve the child's condition or will
10-26    extend the child's ability to function independently;
10-27                (4)  the department determines that the persons who
 11-1    have any legal obligation to provide services for the child are
 11-2    unable to pay for the entire cost of the services; and
 11-3                (5)  the child meets all other eligibility criteria
 11-4    established by board rules.
 11-5          (d) [(c)]  A child is not eligible to receive services, other
 11-6    than rehabilitation services, unless the child:
 11-7                (1)  is a resident of this state; and
 11-8                (2)  meets all other eligibility criteria established
 11-9    by board rules.
11-10          SECTION 7.  Section 35.007(e), Health and Safety Code, is
11-11    amended to read as follows:
11-12          (e)  The department may collect the cost of services provided
11-13    under this chapter directly in accordance with [from] Title XVIII,
11-14    [or] Title XIX, or Title XXI of the Social Security Act (42 U.S.C.
11-15    Sections 1395 et seq., [and] 1396 et seq., and 1397aa et seq.), as
11-16    amended, any personal insurance, a health maintenance organization,
11-17    or any other third party who has a legal obligation to pay other
11-18    benefits.
11-19          SECTION 8.  Sections 35.012(a) and (b), Health and Safety
11-20    Code, are amended to read as follows:
11-21          (a)  The department may take a census, make surveys, and
11-22    establish permanent records of [chronically ill and disabled]
11-23    children with special health care needs.
11-24          (b)  The department shall maintain a record of orthotic and
11-25    prosthetic devices, durable medical equipment, and medical supplies
11-26    purchased by the department for [chronically ill and disabled]
11-27    children with special health care needs.  Those items are not
 12-1    state-owned personal property and are exempt from the personal
 12-2    property inventory requirements of Subtitle D, Title 10, Government
 12-3    Code.
 12-4          SECTION 9.  The heading of Chapter 35, Health and Safety
 12-5    Code, is amended to read as follows:
 12-6           CHAPTER 35.  CHILDREN WITH SPECIAL HEALTH CARE NEEDS
 12-7            [CHRONICALLY ILL AND DISABLED CHILDREN'S SERVICES]
 12-8          SECTION 10.  Section 33.031, Health and Safety Code, is
 12-9    amended to read as follows:
12-10          Sec. 33.031.  COORDINATION WITH CHILDREN WITH SPECIAL HEALTH
12-11    CARE NEEDS [CHRONICALLY ILL AND DISABLED CHILDREN'S] SERVICES.  (a)
12-12    All newborn children and other individuals under 21 years of age
12-13    who have been screened, have been found to be presumptively
12-14    positive through the newborn screening program, and may be
12-15    financially eligible may be referred to the department's
12-16    [chronically ill and disabled children's] services program for
12-17    children with special health care needs.
12-18          (b)  An individual who is determined to be eligible for
12-19    services under the [chronically ill and disabled children's]
12-20    services program for children with special health care needs shall
12-21    be given approved services through that program.  An individual who
12-22    does not meet that eligibility criteria shall be referred to the
12-23    newborn screening program for a determination of eligibility for
12-24    newborn screening program services.
12-25          SECTION 11.  Section 109.066, Health and Safety Code, is
12-26    amended to read as follows:
12-27          Sec. 109.066.  TEXAS DEPARTMENT OF HEALTH PROGRAMS.  (a)  The
 13-1    department may use appropriated funds, in accordance with the
 13-2    General Appropriations Act, to purchase coverage under a health
 13-3    benefit plan provided through the program for children who are
 13-4    eligible for coverage for the program if:
 13-5                (1)  the children receive health care benefits under
 13-6    the [chronically ill and disabled children's] services program for
 13-7    children with special health care needs or another federally funded
 13-8    or state-funded program, other than the state Medicaid program,
 13-9    that is administered by the department;
13-10                (2)  provision of the benefits through a health benefit
13-11    plan provided through the program is a more cost-effective means of
13-12    providing some or all of the benefits described by Subdivision (1);
13-13    and
13-14                (3)  no benefit or service provided to the children is
13-15    eliminated or adversely affected as a result of the provision of
13-16    the benefits through the program.
13-17          (b)  Services provided to children under a federally funded
13-18    or state-funded program administered by the department, including
13-19    the [chronically ill and disabled children's] program for children
13-20    with special health care needs, may not be reduced or eliminated
13-21    because some or all of the services are provided through the
13-22    program or otherwise provided because of the establishment of the
13-23    corporation or the program.
13-24          SECTION 12.  Section 14(b)(2), Article 21.58A, Insurance
13-25    Code, is amended to read as follows:
13-26                (2)  Except as provided by Subsection (g) of this
13-27    section, this article shall not apply to the Texas Medicaid
 14-1    Program, the [chronically ill and disabled children's] services
 14-2    program for children with special health care needs created
 14-3    pursuant to Chapter 35, Health and Safety Code, any program
 14-4    administered under Title 2, Human Resources Code, any program of
 14-5    the Texas Department of Mental Health and Mental Retardation, or
 14-6    any program of the Texas Department of Criminal Justice.
 14-7          SECTION 13.  Section 35.002, Health and Safety Code, is
 14-8    repealed.
 14-9          SECTION 14.  (a)  This Act takes effect September 1, 1999,
14-10    and applies only to delivery of services under Chapter 35, Health
14-11    and Safety Code, as amended by this Act, on or after January 1,
14-12    2000.
14-13          (b)  The Texas Department of Health shall implement the
14-14    health benefits plan required by Section 35.0031, Health and Safety
14-15    Code, as added by this Act, not later than January 1, 2000.
14-16          (c)  The Texas Board of Health shall adopt all rules
14-17    necessary to implement the changes in law made by this Act not
14-18    later than January 1, 2000.
14-19          SECTION 15.  The importance of this legislation and the
14-20    crowded condition of the calendars in both houses create an
14-21    emergency and an imperative public necessity that the
14-22    constitutional rule requiring bills to be read on three several
14-23    days in each house be suspended, and this rule is hereby suspended.