76R12217 CLG-F                           
         By Coleman, Dunnam, Hodge, McClendon                  H.B. No. 2896
         Substitute the following for H.B. No. 2896:
         By Coleman                                        C.S.H.B. No. 2896
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the administration and operation of the state Medicaid
 1-3     program.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 531, Government Code, is
 1-6     amended by adding Section 531.0218 to read as follows:
 1-7           Sec. 531.0218. EVALUATION OF ENTITIES CONTRACTING TO OPERATE
 1-8     MEDICAID PROGRAM.  The commission shall evaluate and report
 1-9     biennially to the legislature and governor regarding the
1-10     contractual performance and related costs of each of the
1-11     administrative entities that contract with the commission to
1-12     operate the state Medicaid program, including enrollment brokers,
1-13     external quality review organizations, primary care case management
1-14     administrators, and claims payors.
1-15           SECTION 2.  Section 533.002, Government Code, is amended to
1-16     read as follows:
1-17           Sec. 533.002.  PURPOSE.  The commission shall implement the
1-18     Medicaid managed care program as part of the health care delivery
1-19     system developed under Chapter 532 by contracting with managed care
1-20     organizations in a manner that, to the extent possible:
1-21                 (1)  improves the health of Texans by:
1-22                       (A)  emphasizing prevention;
1-23                       (B)  promoting continuity of care; [and]
1-24                       (C)  providing a medical home for recipients; and
 2-1                       (D)  developing strategies to encourage more
 2-2     personal responsibility in health care maintenance and decisions;
 2-3                 (2)  ensures that each recipient receives high quality,
 2-4     comprehensive health care services in the recipient's local
 2-5     community;
 2-6                 (3)  encourages the training of and access to primary
 2-7     care physicians and providers;
 2-8                 (4)  maximizes cooperation with existing public health
 2-9     entities, including local departments of health;
2-10                 (5)  provides incentives to managed care organizations
2-11     to improve the quality of health care services for recipients by
2-12     providing value-added services; and
2-13                 (6)  reduces administrative and other nonfinancial
2-14     barriers for recipients in obtaining health care services.
2-15           SECTION 3.  Section 533.003, Government Code, is amended to
2-16     read as follows:
2-17           Sec. 533.003.  CONSIDERATIONS IN AWARDING CONTRACTS.  In
2-18     awarding contracts to managed care organizations, the commission
2-19     shall:
2-20                 (1)  give preference to organizations that have
2-21     significant participation in the organization's provider network
2-22     from each health care provider in the region who has traditionally
2-23     provided care to Medicaid and charity care patients, including
2-24     organizations that contract with school-based health centers;
2-25                 (2)  give extra consideration to organizations that
2-26     agree to assure continuity of care for at least three months beyond
2-27     the period of Medicaid eligibility for recipients; [and]
 3-1                 (3)  consider the need to use different managed care
 3-2     plans to meet the needs of different populations; and
 3-3                 (4)  consider the ability of organizations to process
 3-4     Medicaid claims electronically.
 3-5           SECTION 4.  Section 533.004, Government Code, is amended by
 3-6     amending Subsection (a) and adding Subsection (e) to read as
 3-7     follows:
 3-8           (a)  In providing health care services through Medicaid
 3-9     managed care to recipients in a health care service region, the
3-10     commission shall contract with any [at least one] managed care
3-11     organization in that region that:
3-12                 (1)  is licensed under the Texas Health Maintenance
3-13     Organization Act (Chapter 20A, Vernon's Texas Insurance Code) to
3-14     provide health care  in that region and that is:
3-15                       (A) [(1)]  wholly owned and operated by a
3-16     hospital district in that region;
3-17                       (B) [(2)]  created by a nonprofit corporation
3-18     that:
3-19                             (i) [(A)]  has a contract, agreement, or
3-20     other arrangement with a hospital district in that region or with a
3-21     municipality in that  region that owns a hospital licensed under
3-22     Chapter 241, Health and Safety Code, and has an obligation to
3-23     provide health care to indigent patients; and
3-24                             (ii) [(B)]  under the contract, agreement,
3-25     or other arrangement, assumes the obligation to provide health care
3-26     to indigent patients and leases, manages, or operates a hospital
3-27     facility owned by the hospital district or municipality; or
 4-1                       (C) [(3)]  created by a nonprofit corporation
 4-2     that has a contract, agreement, or other arrangement with a
 4-3     hospital district in that region under which the nonprofit
 4-4     corporation acts as an agent of the district and assumes the
 4-5     district's obligation to arrange for services under the Medicaid
 4-6     expansion for children as authorized by Chapter 444, Acts of the
 4-7     74th Legislature, Regular Session, 1995; or
 4-8                 (2)  holds a certificate of authority as a health
 4-9     maintenance organization under Article 20A.05, Insurance Code, and
4-10     that is:
4-11                       (A)  certified under Section 5.01(a), Medical
4-12     Practice Act (Article 4495b, Vernon's Texas Civil Statutes); and
4-13                       (B)  created by The University of Texas Medical
4-14     Branch at Galveston.
4-15           (e)  For purposes of a managed care organization described by
4-16     Subsection (a)(2), "health care service region" or "region" means
4-17     the service area for which the managed care organization has
4-18     obtained a certificate of authority as a health maintenance
4-19     organization from the Texas Department of Insurance before
4-20     September 2, 1999.
4-21           SECTION 5.  Section 533.005, Government Code, is amended to
4-22     read as follows:
4-23           Sec. 533.005.  REQUIRED CONTRACT PROVISIONS.  A contract
4-24     between a managed care organization and the commission for the
4-25     organization to provide health care services to recipients must
4-26     contain:
4-27                 (1)  procedures to ensure accountability to the state
 5-1     for the provision of health care services, including procedures for
 5-2     financial reporting, quality assurance, utilization review, and
 5-3     assurance of contract and subcontract compliance;
 5-4                 (2)  capitation and provider payment rates that ensure
 5-5     the cost-effective provision of quality health care;
 5-6                 (3)  a requirement that the managed care organization
 5-7     provide ready access to a person who assists recipients in
 5-8     resolving issues relating to enrollment, plan administration,
 5-9     education and training, access to services, and grievance
5-10     procedures;
5-11                 (4)  a requirement that the managed care organization
5-12     provide ready access to a person who assists providers in resolving
5-13     issues relating to payment, plan administration, education and
5-14     training, and grievance procedures;
5-15                 (5)  a requirement that the managed care organization
5-16     provide information and referral about the availability of
5-17     educational, social, and other community services that could
5-18     benefit a recipient;
5-19                 (6)  procedures for recipient outreach and education;
5-20                 (7)  a requirement that the managed care organization
5-21     make payment to a physician or provider for health care services
5-22     rendered to a recipient under a managed care plan not later than
5-23     the 45th day after the date a claim for payment is received with
5-24     documentation reasonably necessary for the managed care
5-25     organization to process the claim, or within a period, not to
5-26     exceed 60 days, specified by a written agreement between the
5-27     physician or provider and the managed care organization;
 6-1                 (8)  a requirement that the commission, on the date of
 6-2     a recipient's enrollment in a managed care plan issued by the
 6-3     managed care organization, inform the organization of the
 6-4     recipient's Medicaid certification [recertification] date; and
 6-5                 (9)  a requirement that the managed care organization
 6-6     comply with Section 533.006 as a condition of contract retention
 6-7     and renewal.
 6-8           SECTION 6.  Subchapter A, Chapter 533, Government Code, is
 6-9     amended by adding Sections 533.0055 and 533.0056 to read as
6-10     follows:
6-11           Sec. 533.0055.  REVIEW OF PROPOSED CONTRACT BY PRIVATE
6-12     ENTITY.  (a)  The commission shall contract with a private entity
6-13     to review each proposed contract between the commission and a
6-14     managed care organization to provide health care services to
6-15     recipients in a region under this chapter.  In conducting a review
6-16     under this section, a private entity shall consider:
6-17                 (1)  the adequacy of current and proposed premium rates
6-18     in each region;
6-19                 (2)  sanctions for failure to meet performance goals;
6-20                 (3)  the ability of the managed care organization to
6-21     meet its contractual obligations and the specific time frames for
6-22     performance under the contract;
6-23                 (4)  the ability of the managed care organization to
6-24     process Medicaid claims electronically; and
6-25                 (5)  any other issues as directed by the commission.
6-26           (b)  The commission shall enter into a contract with a
6-27     private entity to review a proposed contract under Subsection (a)
 7-1     not later than the 180th day before the contract renewal date for
 7-2     the region to which the proposed contract applies.
 7-3           (c)  Not later than the 120th day before the contract renewal
 7-4     date for the region to which the proposed contract applies, a
 7-5     private entity reviewing a proposed contract under Subsection (a)
 7-6     shall issue a report to the commission stating the findings of its
 7-7     review, including any recommendations for changes.
 7-8           (d)  The commission may make any necessary changes to a
 7-9     proposed contract based on the findings of a review conducted by a
7-10     private entity under this section.
7-11           Sec. 533.0056.  IMPLEMENTATION OF STATE-ADMINISTERED PLAN IN
7-12     REGION.  The commission may not implement more than one
7-13     state-administered managed care plan in a health care service
7-14     region.
7-15           SECTION 7.  Section 533.006(a), Government Code, is amended
7-16     to read as follows:
7-17           (a)  The commission shall require that each managed care
7-18     organization that contracts with the commission to provide health
7-19     care services to recipients in a region:
7-20                 (1)  seek participation in the organization's provider
7-21     network from:
7-22                       (A)  each health care provider in the region who
7-23     has traditionally provided care to Medicaid recipients; [and]
7-24                       (B)  each hospital in the region that has been
7-25     designated as a disproportionate share hospital under the state
7-26     Medicaid program; and
7-27                       (C)  each specialized pediatric laboratory in the
 8-1     region, including those laboratories located in children's
 8-2     hospitals; and
 8-3                 (2)  include in its provider network for not less than
 8-4     three years:
 8-5                       (A)  each health care provider in the region who:
 8-6                             (i)  previously provided care to Medicaid
 8-7     and charity care recipients at a significant level as prescribed by
 8-8     the commission;
 8-9                             (ii)  agrees to accept the prevailing
8-10     provider contract rate of the managed care organization; and
8-11                             (iii)  has the credentials required by the
8-12     managed care organization, provided that lack of board
8-13     certification or accreditation by the Joint Commission on
8-14     Accreditation of Healthcare Organizations may not be the sole
8-15     ground for exclusion from the provider network;
8-16                       (B)  each accredited primary care residency
8-17     program in the region; and
8-18                       (C)  each disproportionate share hospital
8-19     designated by the commission as a statewide significant traditional
8-20     provider.
8-21           SECTION 8.  Section 533.007(e), Government Code, is amended
8-22     to read as follows:
8-23           (e)  The commission shall conduct a compliance and readiness
8-24     review of each managed care organization that contracts with the
8-25     commission not later than the 15th day before the date on which the
8-26     commission plans to begin the enrollment process in a region and
8-27     again not later than the 15th day before the date on which the
 9-1     commission plans to begin to provide health care services to
 9-2     recipients in that region through managed care.  The review must
 9-3     include an on-site inspection and tests of service authorization
 9-4     and claims payment systems, including the ability of the managed
 9-5     care organization to process claims electronically, complaint
 9-6     processing systems, and any other process or system required by the
 9-7     contract.
 9-8           SECTION 9.  Section 533.0075, Government Code, is amended to
 9-9     read as follows:
9-10           Sec. 533.0075.  RECIPIENT ENROLLMENT.  The commission shall:
9-11                 (1)  encourage recipients to choose appropriate managed
9-12     care plans and primary health care providers by:
9-13                       (A)  providing initial information to recipients
9-14     and providers in a region about the need for recipients to choose
9-15     plans and providers not later than the 90th day before the date on
9-16     which the commission plans to begin to provide health care services
9-17     to recipients in that region through managed care;
9-18                       (B)  providing follow-up information before
9-19     assignment of plans and providers and after assignment, if
9-20     necessary, to recipients who delay in choosing plans and providers;
9-21     and
9-22                       (C)  allowing plans and providers to provide
9-23     information to recipients or engage in marketing activities under
9-24     marketing guidelines established by the commission under Section
9-25     533.008 after the commission approves the information or
9-26     activities;
9-27                 (2)  consider the following factors in assigning
 10-1    managed care plans and primary health care providers to recipients
 10-2    who fail to choose plans and providers:
 10-3                      (A)  the importance of maintaining existing
 10-4    provider-patient and physician-patient relationships, including
 10-5    relationships with specialists, public health clinics, and
 10-6    community health centers;
 10-7                      (B)  to the extent possible, the need to assign
 10-8    family members to the same providers and plans; and
 10-9                      (C)  geographic convenience of plans and
10-10    providers for recipients; [and]
10-11                (3)  retain responsibility for enrollment and
10-12    disenrollment of recipients in managed care plans, except that the
10-13    commission may delegate the responsibility to an independent
10-14    contractor who receives no form of payment from, and has no
10-15    financial ties to, any managed care organization;
10-16                (4)  develop and implement an expedited process for
10-17    determining eligibility for and enrolling pregnant women and
10-18    newborn infants in managed care plans;
10-19                (5)  ensure immediate access to prenatal services and
10-20    newborn care for pregnant women and newborn infants enrolled in
10-21    managed care plans, including ensuring that a pregnant woman may
10-22    obtain an appointment with an obstetrical care provider for an
10-23    initial maternity evaluation not later than the 30th day after the
10-24    date the woman applies for Medicaid;
10-25                (6)  implement a process to reduce or eliminate the
10-26    number of recipients classified as "on hold" with respect to the
10-27    delivery of services under managed care plans or, in the
 11-1    alternative, develop a method for continued payment to managed care
 11-2    organizations to avoid interruptions in recipient care;  and
 11-3                (7)  temporarily assign Medicaid-eligible newborn
 11-4    infants to the traditional fee-for-service component of the state
 11-5    Medicaid program for a period not to exceed the earlier of:
 11-6                      (A)  60 days; or
 11-7                      (B)  the date on which the Texas Department of
 11-8    Human Services has completed the newborn's Medicaid eligibility
 11-9    determination, including assignment of the newborn's Medicaid
11-10    eligibility number.
11-11          SECTION 10.  Subchapter A, Chapter 533, Government Code, is
11-12    amended by adding Section 533.0076 to read as follows:
11-13          Sec. 533.0076.  ELIGIBILITY DETERMINATION AND ENROLLMENT;
11-14    PILOT PROGRAM.  (a)   Not later than November 1, 1999, the
11-15    commission shall develop and implement a pilot program to simplify,
11-16    to the extent possible, the process for determining eligibility for
11-17    and enrolling recipients in managed care plans.  The commission
11-18    shall implement the pilot program in a single county in a region in
11-19    which the commission has implemented Medicaid managed care.
11-20          (b)  In developing the pilot program, the commission, to the
11-21    extent possible, shall use continuous eligibility procedures and
11-22    eliminate the use of resource requirements for determining
11-23    eligibility.  The commission shall evaluate:
11-24                (1)  the net financial impact of the pilot program on
11-25    Medicaid costs in the county;
11-26                (2)  the impact of the pilot program on health outcomes
11-27    in the county; and
 12-1                (3)  any other Medicaid-related issues the commission
 12-2    considers necessary.
 12-3          (c)  Not later than November 1, 2002, the commission shall
 12-4    submit to the legislature a report concerning the pilot program
 12-5    required by this section, including any recommendations for
 12-6    legislative action.
 12-7          (d)  This section expires September 1, 2003.
 12-8          SECTION 11.  Subchapter A, Chapter 533, Government Code, is
 12-9    amended by adding Sections 533.012-533.016 to read as follows:
12-10          Sec. 533.012.  MORATORIUM ON IMPLEMENTATION OF CERTAIN PILOT
12-11    PROGRAMS; REVIEW; REPORT.  (a)   Notwithstanding any other law, the
12-12    commission, after May 1, 2000, may not implement Medicaid managed
12-13    care pilot programs, Medicaid behavioral health pilot programs, or
12-14    Medicaid Star + Plus pilot programs in a region for which the
12-15    commission has not:
12-16                (1)  received a bid from a managed care organization to
12-17    provide health care services to recipients in the region through a
12-18    managed care plan; or
12-19                (2)  entered into a contract with a managed care
12-20    organization to provide health care services to recipients in the
12-21    region through a managed care plan.
12-22          (b)  The commission shall:
12-23                (1)  review any outstanding administrative and
12-24    financial issues with respect to Medicaid managed care pilot
12-25    programs, Medicaid behavioral health pilot programs, and Medicaid
12-26    Star + Plus pilot programs implemented in health care service
12-27    regions, including the effects of the eligibility system,
 13-1    enrollment brokers, primary care case management administrators,
 13-2    and administrative functions on the quality and availability of
 13-3    health care;
 13-4                (2)  review the obligations and duties of the
 13-5    commission and each health and human services agency operating part
 13-6    of the state Medicaid program with respect to the administration of
 13-7    the managed care component of the program and the resources
 13-8    required by each operating agency to meet those obligations and
 13-9    duties;
13-10                (3)  review the impact of the Medicaid managed care
13-11    delivery system, including managed care organizations, prepaid
13-12    health plans, and primary care case management, on:
13-13                      (A)  physical access and program-related access
13-14    to appropriate services by recipients, including recipients who
13-15    have special health care needs;
13-16                      (B)  quality of health care delivery and patient
13-17    outcomes;
13-18                      (C)  utilization patterns of recipients;
13-19                      (D)  statewide Medicaid costs;
13-20                      (E)  coordination of care and care coordination
13-21    in Medicaid Star + Plus pilot programs;
13-22                      (F)  the level of administrative complexity for
13-23    providers, recipients, and managed care organizations;
13-24                      (G)  public hospitals, medical schools, and other
13-25    traditional providers of indigent health care; and
13-26                      (H)  competition in the marketplace and network
13-27    retention;
 14-1                (4)  evaluate the feasibility of implementing a payment
 14-2    system based on patient severity and risk, including the
 14-3    implementation of health status screening for patients to determine
 14-4    which patients need case management or other interventions;
 14-5                (5)  evaluate the progress of the state with respect to
 14-6    the development of reliable and informative data relating to
 14-7    services provided to recipients enrolled in managed care plans; and
 14-8                (6)  review the costs incurred and any savings realized
 14-9    by the state in implementing Medicaid managed care, including the
14-10    costs incurred and savings realized by each model of the Medicaid
14-11    managed care delivery system, including managed care organizations,
14-12    primary care case management systems, and partially capitated
14-13    health plans.
14-14          (c)  The review conducted by the commission under Subsection
14-15    (b)(6) must include an evaluation of Medicaid managed care programs
14-16    in other states to determine the cost-effectiveness of using a
14-17    single managed care delivery model described by that subsection in
14-18    a service area or a mixture of those delivery models in a service
14-19    area.
14-20          (d)  In performing its duties and functions under Subsection
14-21    (b), the commission shall seek input from the state Medicaid
14-22    managed care advisory committee created under Subchapter C.
14-23          (e)  Notwithstanding Subsection (a), the commission may
14-24    implement Medicaid managed care pilot programs, Medicaid
14-25    behavioral health pilot programs, and Medicaid Star + Plus pilot
14-26    programs in a region described by that subsection if the commission
14-27    finds that:
 15-1                (1)  outstanding administrative and financial issues
 15-2    with respect to the implementation of those programs in health care
 15-3    service regions have been resolved; and
 15-4                (2)  implementation of those programs in a region
 15-5    described by Subsection (a) would benefit both recipients and
 15-6    providers.
 15-7          (f)  Not later than November 1, 2000, the commission shall
 15-8    submit a report to the governor and the legislature that:
 15-9                (1)  states whether the outstanding administrative and
15-10    financial issues with respect to the pilot programs described by
15-11    Subsection (b)(1) have been sufficiently resolved;
15-12                (2)  summarizes the findings of the review conducted
15-13    under Subsection (b);
15-14                (3)  recommends which elements of the Medicaid managed
15-15    care delivery system should be applied to the traditional
15-16    fee-for-service component of the state Medicaid program to achieve
15-17    the goals specified in Section 533.002(1); and
15-18                (4)  recommends whether Medicaid managed care pilot
15-19    programs, Medicaid behavioral health pilot programs, or Medicaid
15-20    Star + Plus pilot programs should be implemented in health care
15-21    service regions described by Subsection (a).
15-22          (g)  To the extent practicable, this section may not be
15-23    construed to affect the duty of the commission to plan the
15-24    continued expansion of Medicaid managed care pilot programs,
15-25    Medicaid behavioral health pilot programs, and Medicaid Star + Plus
15-26    pilot programs in health care service regions described by
15-27    Subsection (a) after July 1, 2001.
 16-1          (h)  This section expires July 1, 2001.
 16-2          Sec. 533.013.  PREMIUM PAYMENT RATE DETERMINATION; REVIEW AND
 16-3    COMMENT.  (a)  In determining premium payment rates paid to a
 16-4    managed care organization under a managed care plan, the commission
 16-5    shall consider:
 16-6                (1)  the regional variation in costs of health care
 16-7    services;
 16-8                (2)  the range and type of health care services to be
 16-9    covered by capitation and provider payment rates;
16-10                (3)  the number of managed care plans in a region;
16-11                (4)  the current and projected number of recipients in
16-12    each region, including the current and projected number for each
16-13    category of recipient;
16-14                (5)  the ability of the managed care plan to meet costs
16-15    of operation under the proposed premium payment rates;
16-16                (6)  the applicable requirements of the federal
16-17    Balanced Budget Act of 1997 and implementing regulations that
16-18    require adequacy of premium payments to managed care organizations
16-19    participating in the state Medicaid program;
16-20                (7)  the adequacy of the management fee paid for
16-21    assisting enrollees of Supplemental Security Income (SSI) (42
16-22    U.S.C. Section 1381 et seq.) who are voluntarily enrolled in the
16-23    managed care plan;
16-24                (8)  the impact of reducing capitation and provider
16-25    payment rates for the category of recipients who are pregnant; and
16-26                (9)  the ability of the managed care plan to pay under
16-27    the proposed premium payment rates inpatient and outpatient
 17-1    hospital provider payment rates that are comparable to the
 17-2    inpatient and outpatient hospital provider payment rates paid by
 17-3    the commission under a primary care case management model or a
 17-4    partially capitated model.
 17-5          (b)  In determining the maximum premium payment rates paid to
 17-6    a managed care organization that is licensed under the Texas Health
 17-7    Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
 17-8    Code), the commission may not discount premium payment rates in an
 17-9    amount that is more than the amount necessary to meet federal
17-10    budget neutrality requirements for projected fee-for-service costs
17-11    unless:
17-12                (1)  a historical review of managed care financial
17-13    results among managed care organizations in the service area served
17-14    by the organization demonstrates that additional savings are
17-15    warranted;
17-16                (2)  a review of Medicaid fee-for-service delivery in
17-17    the service area served by the organization has historically shown
17-18    a significant overutilization by recipients of all services covered
17-19    by the premium payment rates in comparison to utilization patterns
17-20    throughout the rest of the state; or
17-21                (3)  a review of Medicaid fee-for-service delivery in
17-22    the service area served by the organization has historically shown
17-23    an above-market cost for services in which there is substantial
17-24    evidence that Medicaid managed care delivery will reduce the cost
17-25    of those services.
17-26          (c)  The premium payment rates paid to a managed care
17-27    organization that is licensed under the Texas Health Maintenance
 18-1    Organization Act (Chapter 20A, Vernon's Texas Insurance Code) shall
 18-2    be established by a competitive bid process but may not exceed the
 18-3    maximum premium payment rates established by the commission under
 18-4    Subsection (b).
 18-5          Sec. 533.014.  PROFIT SHARING.  (a)  The commission shall
 18-6    adopt rules regarding the sharing of profits earned by a managed
 18-7    care organization through a managed care plan providing health care
 18-8    services under a contract with the commission under this chapter.
 18-9          (b)  Any amount received by the state under this section
18-10    shall be deposited in the general revenue fund for the purpose of
18-11    funding Medicaid outreach and education activities.
18-12          Sec. 533.015.  COORDINATION OF EXTERNAL OVERSIGHT AND UNIFORM
18-13    DOCUMENT REVIEW.  (a)  The commission shall coordinate all external
18-14    oversight activities to minimize duplication of oversight of
18-15    managed care plans under the state Medicaid program and disruption
18-16    of operations under those plans.
18-17          (b)  The commission shall develop and administer a single
18-18    uniform procedure for the review of documents a managed care
18-19    organization under contract with the commission under this chapter
18-20    is required to submit for state approval.  Each agency involved in
18-21    administering Medicaid managed care for acute care, long-term care,
18-22    or behavioral health services shall use the procedure developed by
18-23    the commission under this subsection to review documents submitted
18-24    by managed care organizations.
18-25          Sec. 533.016.  COORDINATION OF MEDICAID LONG-TERM CARE.  If
18-26    the commission delegates all or part of its functions, powers, and
18-27    duties related to long-term care under Section 532.002 or
 19-1    Subchapter B or C, Chapter 532, including the operation of pilot
 19-2    projects, the commission shall:
 19-3                (1)  designate a single health and human services
 19-4    agency to serve as lead agency to ameliorate the impact of multiple
 19-5    agencies with responsibility for functions related to long-term
 19-6    care; and
 19-7                (2)  ensure that long-term care is administered by each
 19-8    of the appropriate health and human services agencies as
 19-9    efficiently and effectively as if long-term care were being
19-10    administered by a single state agency.
19-11          SECTION 12.  Chapter 533, Government Code, is amended by
19-12    adding Subchapter C to read as follows:
19-13                   SUBCHAPTER C.  STATEWIDE ADVISORY COMMITTEE
19-14          Sec. 533.041.  APPOINTMENT AND COMPOSITION.  (a)  The
19-15    commission shall appoint a state Medicaid managed care advisory
19-16    committee.  The advisory committee consists of representatives of:
19-17                (1)  hospitals;
19-18                (2)  managed care organizations;
19-19                (3)  primary care providers;
19-20                (4)  state agencies;
19-21                (5)  consumer advocates representing low-income
19-22    recipients;
19-23                (6)  consumer advocates representing recipients with a
19-24    disability;
19-25                (7)  parents of children who are recipients;
19-26                (8)  rural providers;
19-27                (9)  advocates for children with special health care
 20-1    needs;
 20-2                (10)  pediatric health care providers, including
 20-3    specialty providers;
 20-4                (11)  obstetrical care providers;
 20-5                (12)  community-based organizations serving low-income
 20-6    children and their families; and
 20-7                (13)  community-based organizations engaged in
 20-8    perinatal services and outreach.
 20-9          (b)  The advisory committee must include a member of each
20-10    regional Medicaid managed care advisory committee appointed by the
20-11    commission under Subchapter B.
20-12          Sec. 533.042.  MEETINGS.  The advisory committee shall meet
20-13    at least quarterly and is subject to Chapter 551.
20-14          Sec. 533.043.  POWERS AND DUTIES.  The advisory committee
20-15    shall:
20-16                (1)  provide recommendations to the commission on the
20-17    statewide implementation and operation of Medicaid managed care;
20-18                (2)  assist the commission with issues relevant to
20-19    Medicaid managed care to improve the policies established for and
20-20    programs operating under  Medicaid managed care, including the
20-21    early and periodic screening, diagnosis, and treatment program,
20-22    provider and patient education issues, and patient eligibility
20-23    issues; and
20-24                (3)  disseminate or make available to each regional
20-25    advisory committee appointed under Subchapter B information on best
20-26    practices with respect to Medicaid managed care that is obtained
20-27    from a regional advisory committee.
 21-1          Sec. 533.044.  OTHER LAW.  Except as provided by this
 21-2    subchapter, the advisory committee is subject to Chapter 2110.
 21-3          SECTION 13.  Section 2.07(c), Chapter 1153, Acts of the 75th
 21-4    Legislature, Regular Session, 1997, is amended to read as follows:
 21-5          (c)  As soon as possible after development of the new
 21-6    provider contract, the commission and each agency operating part of
 21-7    the state Medicaid program by rule shall require each provider who
 21-8    enrolled in the program before completion of the new contract to
 21-9    reenroll in the program under the new contract or modify the
21-10    provider's existing contract in accordance with commission or
21-11    agency procedures as necessary to comply with the requirements of
21-12    the new contract.  The commission shall study the feasibility of
21-13    authorizing providers to reenroll in the program online or through
21-14    other electronic means.  On completion of the study, if the
21-15    commission determines that an online or other electronic method for
21-16    reenrollment of providers is feasible, the commission shall develop
21-17    and implement the electronic method of reenrollment for providers
21-18    not later than September 1, 2000.  A provider must reenroll in the
21-19    state Medicaid program or make the necessary contract modifications
21-20    not later than March 31, 2000 [September 1, 1999], to retain
21-21    eligibility to participate in the program, unless the commission
21-22    implements under this subsection an electronic method of
21-23    reenrollment for providers, in which event, a provider must
21-24    reenroll or make the contractual modifications not later than
21-25    September 1, 2000.  The commission by rule may extend a
21-26    reenrollment deadline prescribed by this subsection if a
21-27    significant number of providers, as determined by the commission,
 22-1    have not met the reenrollment requirements by the applicable
 22-2    deadline.
 22-3          SECTION 14.  (a)  Not later than January 1, 2000, the Health
 22-4    and Human Services Commission shall implement the expedited process
 22-5    for determining eligibility for and enrollment of certain
 22-6    recipients in Medicaid managed care plans required by Section
 22-7    533.0075(4), Government Code, as added by this Act.
 22-8          (b)  The Health and Human Services Commission shall report
 22-9    quarterly to the standing committees of the senate and house of
22-10    representatives with primary jurisdiction over Medicaid managed
22-11    care regarding the status of the expedited process described by
22-12    Subsection (a) of this section.  The commission shall submit
22-13    quarterly reports under this subsection until the commission
22-14    determines the process is fully implemented and functioning
22-15    successfully.
22-16          SECTION 15.  If before implementing any provision of this Act
22-17    a state agency determines that a waiver or other authorization from
22-18    a federal agency is necessary for implementation, the Health and
22-19    Human Services Commission shall request the waiver or authorization
22-20    and may delay implementing that provision until the waiver or
22-21    authorization is granted.
22-22          SECTION 16.  (a)  Except as provided by Subsection (b), this
22-23    Act takes effect September 1, 1999.
22-24          (b)  Section 533.013, Government Code, as added by this Act,
22-25    takes effect on the first date that it may take effect under
22-26    Section 39, Article III, Texas Constitution.
22-27          SECTION 17.  The importance of this legislation and the
 23-1    crowded condition of the calendars in both houses create an
 23-2    emergency and an imperative public necessity that the
 23-3    constitutional rule requiring bills to be read on three several
 23-4    days in each house be suspended, and this rule is hereby suspended,
 23-5    and that this Act take effect and be in force according to its
 23-6    terms, and it is so enacted.