76R11454 E                          
         By Moncrief, et al.                                    S.B. No. 445
         Substitute the following for S.B. No. 445:
         By Gray                                            C.S.S.B. No. 445
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a child health plan for certain low-income children.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subtitle C, Title 2, Health and Safety Code, is
 1-5     amended by adding Chapters 62 and 63 to read as follows:
 1-6       CHAPTER 62.  CHILD HEALTH PLAN FOR CERTAIN LOW-INCOME CHILDREN
 1-7                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-8           Sec. 62.001.  DEFINITIONS.  In this chapter:
 1-9                 (1)  "Commission" means the Health and Human Services
1-10     Commission.
1-11                 (2)  "Commissioner" means the commissioner of health
1-12     and human services.
1-13                 (3)  "Health plan provider" means an insurance company,
1-14     health maintenance organization, or other entity that provides
1-15     health benefits coverage under the child health plan program.  The
1-16     term includes a primary care case management provider network.
1-17                 (4)  "Net family income" means the amount of income
1-18     established for a family after reduction for offsets for expenses
1-19     such as child care and work-related expenses, in accordance with
1-20     standards applicable under the Medicaid program.
1-21           Sec. 62.002.  NOT AN ENTITLEMENT; TERMINATION OF PROGRAM.
1-22     (a)  This chapter does not establish an entitlement to assistance
1-23     in obtaining health benefits for a child.
1-24           (b)  The program established under this chapter terminates at
 2-1     the time that federal funding terminates under Title XXI of the
 2-2     Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended,
 2-3     unless a successor program providing federal funding for a
 2-4     state-designed child health plan program is created.
 2-5           Sec. 62.003.  FEDERAL LAW AND REGULATIONS.  The commissioner
 2-6     shall monitor federal legislation affecting Title XXI of the Social
 2-7     Security Act (42 U.S.C. Section 1397aa et seq.) and changes to the
 2-8     federal regulations implementing that law.  If the commissioner
 2-9     determines that a change to Title XXI of the Social Security Act
2-10     (42 U.S.C. Section 1397aa et seq.) or the federal regulations
2-11     implementing that law conflicts with this chapter, the commissioner
2-12     shall report the changes to the governor, lieutenant governor, and
2-13     speaker of the house of representatives, with recommendations for
2-14     legislation necessary to implement the federal law or regulations,
2-15     seek a waiver, or withdraw from participation.
2-16             (Sections 62.004 to 62.050 reserved for expansion
2-17         SUBCHAPTER B.  ADMINISTRATION OF CHILD HEALTH PLAN PROGRAM
2-18           Sec. 62.051.  DUTIES OF COMMISSION.  (a)  The commission
2-19     shall develop a state-designed child health plan program to obtain
2-20     health benefits coverage for children in low-income families.  The
2-21     plan shall include an option for the parent of the child to
2-22     participate in a medical savings account insurance program as
2-23     defined in 26 U.S.C. Section 220(d)(1) and allow a parent's
2-24     employer or other benefactor to contribute to said program.  The
2-25     commission shall ensure that the child health plan and medical
2-26     savings account insurance program is designed and administered in a
2-27     manner that qualifies for federal funding under Title XXI of the
 3-1     Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended,
 3-2     and any other applicable law or regulations.
 3-3           (b)  The commission is the agency responsible for making
 3-4     policy for the child health plan program, including policy related
 3-5     to covered benefits provided under the child health plan.  The
 3-6     commission may not delegate this duty to another agency or entity.
 3-7           (c)  The commission shall oversee the implementation of the
 3-8     child health plan program and coordinate the activities of each
 3-9     agency necessary to the implementation of the program, including
3-10     the Texas Department of Health, Texas Department of Human Services,
3-11     and Texas Department of Insurance.
3-12           (d)  The commission shall adopt rules as necessary to
3-13     implement this chapter.  The commission may require the Texas
3-14     Department of Health, the Texas Department of Human Services, or
3-15     any other health and human services agency to adopt, with the
3-16     approval of the commission, any rules that may be necessary to
3-17     implement the program.  With the consent of another agency,
3-18     including the Texas Department of Insurance, the commission may
3-19     delegate to that agency the authority to adopt, with the approval
3-20     of the commission, any rules that may be necessary to implement the
3-21     program.
3-22           (e)  The commission shall conduct a review of each entity
3-23     that enters into a contract to implement any part of the child
3-24     health plan program, including an entity with which the commission
3-25     contracts under Section 62.055 and each health plan provider, to
3-26     ensure that the entity is available, prepared, and able to fulfill
3-27     the entity's obligations under the contract in compliance with the
 4-1     contract, this chapter, and rules adopted under this chapter.
 4-2           Sec. 62.052.  DUTIES OF TEXAS DEPARTMENT OF HEALTH.  (a)  The
 4-3     commission may direct the Texas Department of Health to:
 4-4                 (1)  implement contracts with health plan providers
 4-5     under Section 62.155;
 4-6                 (2)  monitor the health plan providers, through
 4-7     reporting requirements and other means, to ensure performance under
 4-8     the contracts and quality delivery of services;
 4-9                 (3)  monitor the quality of services delivered to
4-10     enrollees through outcome measurements including:
4-11                       (A)  rate of hospitalization for ambulatory
4-12     sensitive conditions, including asthma, diabetes, epilepsy,
4-13     dehydration, gastroenteritis, pneumonia, and UTI/kidney infection;
4-14                       (B)  rate of hospitalization for injuries;
4-15                       (C)  percent of enrolled adolescents reporting
4-16     risky health behavior such as injuries, tobacco use, alcohol/drug
4-17     use, dietary behavior, physical activity, or other health related
4-18     behaviors; and
4-19                       (D)  percent of adolescents reporting attempted
4-20     suicide; and
4-21                 (4)  provide payment under the contracts to the health
4-22     plan providers.
4-23           (b)  The commission, or the Texas Department of Health under
4-24     the direction of and in consultation with the commission, shall
4-25     adopt rules as necessary to implement this section.
4-26           Sec. 62.053.  DUTIES OF TEXAS DEPARTMENT OF HUMAN SERVICES.
4-27     (a)  Under the direction of the commission, the Texas Department of
 5-1     Human Services may:
 5-2                 (1)  accept applications for coverage under the child
 5-3     health plan and implement the child health plan program eligibility
 5-4     screening and enrollment procedures;
 5-5                 (2)  resolve grievances relating to eligibility
 5-6     determinations; and
 5-7                 (3)  coordinate the child health plan program with the
 5-8     Medicaid program.
 5-9           (b)  If the commission contracts with a third party
5-10     administrator under Section 62.055, the commission may direct the
5-11     Texas Department of Human Services to:
5-12                 (1)  implement the contract;
5-13                 (2)  monitor the third party administrator, through
5-14     reporting requirements and other means, to ensure performance under
5-15     the contract and quality delivery of services; and
5-16                 (3)  provide payment under the contract to the third
5-17     party administrator.
5-18           (c)  The commission, or the Texas Department of Human
5-19     Services under the direction of and in consultation with the
5-20     commission, shall adopt rules as necessary to implement this
5-21     section.
5-22           Sec. 62.054.  DUTIES OF TEXAS DEPARTMENT OF INSURANCE.
5-23     (a)  At the request of the commission, the Texas Department of
5-24     Insurance shall provide any necessary assistance with the
5-25     development of the child health plan.  The department shall monitor
5-26     the quality of the services provided by health plan providers and
5-27     resolve grievances relating to the health plan providers.
 6-1           (b)  The commission and the Texas Department of Insurance may
 6-2     adopt a memorandum of understanding that addresses the
 6-3     responsibilities of each agency in developing the plan.
 6-4           (c)  The Texas Department of Insurance, in consultation with
 6-5     the commission, shall adopt rules as necessary to implement this
 6-6     section.
 6-7           Sec. 62.055.  CONTRACTS FOR IMPLEMENTATION OF CHILD HEALTH
 6-8     PLAN.  (a)  In administering the child health plan, the commission
 6-9     may contract with:
6-10                 (1)  a third party administrator to provide eligibility
6-11     screening, enrollment procedures, or related services under the
6-12     state child health plan; or
6-13                 (2)  another entity, including the Texas Healthy Kids
6-14     Corporation under Subchapter F, Chapter 109, to obtain health
6-15     benefit plan coverage for children who are eligible for coverage
6-16     under the state child health plan.
6-17           (b)  A third party administrator or other entity may perform
6-18     tasks under the contract that would otherwise be performed by the
6-19     Texas Department of Health or Texas Department of Human Services
6-20     under this chapter.
6-21           (c)  If the commission elects to contract with a third party
6-22     administrator or other entity as described in Subsection (a), the
6-23     commission shall:
6-24                 (1)  retain all policymaking authority over the state
6-25     child health plan;
6-26                 (2)  procure all contracts with a third party
6-27     administrator or other entity through a competitive procurement
 7-1     process in compliance with all applicable federal and state laws or
 7-2     regulations; and
 7-3                 (3)  ensure that all contracts with child health plan
 7-4     providers under Section 62.155 are procured through a competitive
 7-5     procurement process in compliance with all applicable federal and
 7-6     state laws or regulations.
 7-7           Sec. 62.056.  COMMUNITY OUTREACH CAMPAIGN; TOLL-FREE HOTLINE.
 7-8     (a)  The commission shall conduct a community outreach and
 7-9     education campaign to provide information relating to the
7-10     availability of health benefits for children under this chapter.
7-11     The commission shall conduct the campaign in a manner that promotes
7-12     the goals of all child health programs and minimizes duplication of
7-13     effort.
7-14           (b)  The community outreach campaign must include:
7-15                 (1)  outreach efforts that involve school-based health
7-16     clinics; and
7-17                 (2)  a toll-free telephone number through which
7-18     families may obtain information about health benefits coverage for
7-19     children.
7-20           (c)  The commission shall contract with community-based
7-21     organizations to implement the community outreach campaign and
7-22     shall also promote and encourage voluntary efforts to implement the
7-23     community outreach campaign.  The commission shall award the
7-24     contracts in a manner that encourages broad participation of
7-25     organizations, with an emphasis on organizations that target
7-26     population groups with high levels of uninsured children.
7-27           (d)  The commission may direct that the Texas Department of
 8-1     Health or the Texas Department of Human Services perform part of
 8-2     the community outreach campaign.
 8-3           (e)  The commission shall be responsible for informing each
 8-4     eligible child's parent as to the existence of the medical savings
 8-5     account insurance program option and providing the parent with the
 8-6     opportunity to choose or refuse to participate in said program.
 8-7           Sec. 62.057.  ADVISORY COMMITTEE.  (a)  Not later than the
 8-8     180th day before the date on which the commission plans to begin to
 8-9     provide health care services to recipients through the child health
8-10     plan program, the commission shall appoint an advisory committee to
8-11     provide recommendations on the implementation and operation of the
8-12     child health plan program.
8-13           (b)  The advisory committee must be composed of
8-14     representatives of:
8-15                 (1)  hospitals;
8-16                 (2)  insurance companies and health maintenance
8-17     organizations eligible to offer the health benefits coverage under
8-18     the child health plan;
8-19                 (3)  primary care providers;
8-20                 (4)  state agencies;
8-21                 (5)  consumer advocates;
8-22                 (6)  parents of children who are enrolled in the child
8-23     health plan;
8-24                 (7)  rural health care providers;
8-25                 (8)  advocates for children with special health care
8-26     needs;
8-27                 (9)  specialty health care providers, including
 9-1     pediatric providers; and
 9-2                 (10)  community-based organizations that provide
 9-3     community outreach under Section 62.056.
 9-4           (c)  The advisory committee shall meet at least quarterly and
 9-5     is subject to Chapter 551, Government Code.
 9-6           (d)  Section 2110.008, Government Code, does not apply to
 9-7     the advisory committee.
 9-8           Sec. 62.058.  FRAUD PREVENTION.  The commission shall develop
 9-9     and implement rules for the prevention and detection of fraud in
9-10     the child health plan program.
9-11             (Sections 62.059 to 62.100 reserved for expansion
9-12       SUBCHAPTER C.  ELIGIBILITY FOR COVERAGE UNDER CHILD HEALTH PLAN
9-13           Sec. 62.101.  ELIGIBILITY.  (a)  A child is eligible for
9-14     health benefits coverage under the child health plan if the child:
9-15                 (1)  is younger than 19 years of age;
9-16                 (2)  is not eligible for medical assistance under the
9-17     Medicaid program;
9-18                 (3)  is not covered by a health benefits plan offering
9-19     adequate benefits, as determined by the commission, except that
9-20     this subdivision shall not apply if the cost to the child's family
9-21     of the health benefits plan covering the child exceeds 10 percent
9-22     of the family's net income;
9-23                 (4)  has a family income that is less than or equal to
9-24     the income eligibility level established under Subsection (b); and
9-25                 (5)  satisfies any other eligibility standard imposed
9-26     under the child health plan program in accordance with 42 U.S.C.
9-27     Section 1397bb, as amended, and any other applicable law or
 10-1    regulations.
 10-2          (b)  The commission shall establish income eligibility levels
 10-3    consistent with Title XXI, Social Security Act (42 U.S.C. Section
 10-4    1397aa et seq.), as amended, and any other applicable law or
 10-5    regulations, and subject to the availability of appropriated money.
 10-6    At the implementation of the program a child who is younger than 19
 10-7    years of age and whose net family income is at or below 200 percent
 10-8    of the federal poverty level is eligible for health benefits
 10-9    coverage under the program.
10-10          Sec. 62.102.  CONTINUOUS COVERAGE.  The commission shall
10-11    provide that an individual who is determined to be eligible for
10-12    coverage under the child health plan remains eligible for those
10-13    benefits until the earlier of:
10-14                (1)  the end of a period, not to exceed 12 months,
10-15    following the date of the eligibility determination; or
10-16                (2)  the individual's 19th birthday.
10-17          Sec. 62.103.  APPLICATION FORM AND PROCEDURES.  (a)  The
10-18    commission, or the Texas Department of Human Services at the
10-19    direction of and in consultation with the commission, shall adopt
10-20    an application form and application procedures for requesting child
10-21    health plan coverage and the medical savings account insurance
10-22    program option under this chapter.
10-23          (b)  The form and procedures must be coordinated with forms
10-24    and procedures under the Medicaid program and forms and procedures
10-25    used by the Texas Healthy Kids Corporation so that a person may
10-26    submit a single consolidated application to seek assistance under
10-27    this chapter or the Medicaid program or from the corporation.
 11-1          (c)  To the extent possible, the application form shall be
 11-2    made available in languages other than English.
 11-3          (d)  The commission may permit application to be made by
 11-4    mail, over the telephone, or through the Internet.
 11-5          Sec. 62.104.  ELIGIBILITY SCREENING AND ENROLLMENT.  (a)  The
 11-6    commission, or the Texas Department of Human Services at the
 11-7    direction and in consultation with the commission, shall develop
 11-8    eligibility screening and enrollment procedures for children that
 11-9    comply with the requirements of 42 U.S.C. Section 1397bb, as
11-10    amended, and any other applicable law or regulations.
11-11          (b)  The Texas Integrated Enrollment Services  eligibility
11-12    determination system or a compatible system may be used to screen
11-13    and enroll children under the child health plan.
11-14          (c)  The eligibility screening and enrollment procedures
11-15    shall ensure that children who appear to be Medicaid-eligible are
11-16    identified and that their families are assisted in applying for
11-17    Medicaid coverage.
11-18          (d)  A child who applies for enrollment in the child health
11-19    plan, who is denied Medicaid coverage after completion of a
11-20    Medicaid application under Subsection (c), but who is eligible for
11-21    enrollment in the child health plan, shall be enrolled in the child
11-22    health plan without further application or qualification.
11-23          (e)  The commission shall report quarterly to the Health Care
11-24    Information Council and the committees of both houses of the
11-25    legislature with jurisdiction over the child health plan:
11-26                (1)  the number of children referred for Medicaid
11-27    application under this section who are enrolled in the Medicaid
 12-1    program; and
 12-2                (2)  the number of children who are denied coverage
 12-3    under the Medicaid program because they failed to complete the
 12-4    application process.
 12-5          (f)  A determination of whether a child is eligible for child
 12-6    health plan coverage under the program and the enrollment of an
 12-7    eligible child with a health plan provider must be completed in a
 12-8    timely manner, as determined by the commission, but not later than
 12-9    the 30th day after the date a complete application is submitted on
12-10    behalf of the child.
12-11          (g)  In the first year of implementation of the child health
12-12    plan, enrollment shall be open.  Thereafter, the commission may
12-13    establish enrollment periods.
12-14          Sec. 62.105.  COVERAGE FOR QUALIFIED ALIENS.  The commission
12-15    shall provide coverage under the state Medicaid program and under
12-16    the program established under this chapter to a child who is a
12-17    qualified alien, as that term is defined by 8 U.S.C. Section
12-18    1641(b), if the federal government authorizes the state to provide
12-19    that coverage. The commission shall comply with any prerequisite
12-20    imposed under the federal law to providing that coverage.
12-21            (Sections 62.106 to 62.150 reserved for expansion
12-22                     SUBCHAPTER D.  CHILD HEALTH PLAN
12-23          Sec. 62.151.  CHILD HEALTH PLAN COVERAGE.  (a)  The child
12-24    health plan must  comply with this chapter and the coverage
12-25    requirements prescribed by  42 U.S.C. Section 1397cc, as amended,
12-26    and any other applicable law or regulations.
12-27          (b)  In developing the covered benefits, the commission shall
 13-1    consider the health care needs of healthy children and children
 13-2    with special health care needs.  At the time the child health plan
 13-3    program is first implemented, the child health plan must provide
 13-4    covered benefits in substantial compliance with the recommended
 13-5    benefits package described for a state-designed child health plan
 13-6    by the Texas House of Representatives Committee on Public Health
 13-7    "CHIP" Interim Report to the Seventy-Sixth Texas Legislature dated
 13-8    December, 1998, and the Senate Interim Committee on Children's
 13-9    Health Insurance Report to the Seventy-Sixth Texas Legislature
13-10    dated December 1, 1998.  The commissioner shall annually evaluate
13-11    the covered benefits provided under the child health plan and may
13-12    modify the covered benefits as appropriate, considering the
13-13    information obtained in implementing the program and budgetary
13-14    limitations.
13-15          (c)  In developing the plan, the commission shall ensure that
13-16    primary and preventive health benefits do not include reproductive
13-17    services.
13-18          (d)  The child health plan must allow an enrolled child with
13-19    a chronic, disabling, or life-threatening illness to select an
13-20    appropriate specialist as a primary care physician.
13-21          Sec. 62.152.  APPLICATION OF INSURANCE LAW.  To provide the
13-22    flexibility necessary to satisfy the requirements of Title XXI of
13-23    the Social Security Act (42 U.S.C. Section 1397aa et seq.), as
13-24    amended, and any other applicable law or regulations, the child
13-25    health plan is not subject to a law that requires:
13-26                (1)  coverage or the offer of coverage of a health care
13-27    service or benefit;
 14-1                (2)  coverage or the offer of coverage for the
 14-2    provision of services by a particular health care services
 14-3    provider, except as provided by Section 62.155(c); or
 14-4                (3)  the use of a particular policy or contract form or
 14-5    of particular language in a policy or contract form.
 14-6          Sec. 62.153.  COST SHARING.  (a)  To the extent permitted
 14-7    under 42 U.S.C. Section 1397cc, as amended, and any other
 14-8    applicable law or regulations, the commission shall require
 14-9    enrollees to share the cost of the child health plan, including
14-10    provisions requiring enrollees under the child health plan to pay:
14-11                (1)  a copayment for services provided under the plan;
14-12                (2)  an enrollment fee; or
14-13                (3)  a portion of the plan premium.
14-14          (b)  Cost-sharing provisions adopted under this section shall
14-15    ensure that families with higher levels of income are required to
14-16    pay progressively higher percentages of the cost of the plan.
14-17          (c)  If cost-sharing provisions imposed under Subsection (a)
14-18    include requirements that enrollees pay a portion of the plan
14-19    premium, the commission shall specify the manner in which the
14-20    premium is paid.  The commission may require that the premium be
14-21    paid to the Texas Department of Health, the Texas Department of
14-22    Human Services, or the health plan provider.
14-23          Sec. 62.154.  CROWD OUT.  (a)  To the extent permitted under
14-24    Title XXI of the Social Security Act (42 U.S.C.  Section 1397aa et
14-25    seq.), as amended, and any other applicable law or regulations, the
14-26    child health plan must include a waiting period and may include
14-27    copayments and other provisions intended to discourage:
 15-1                (1)  employers and other persons from electing to
 15-2    discontinue offering coverage for children under employee or other
 15-3    group health benefit plans; and
 15-4                (2)  individuals with access to adequate health benefit
 15-5    plan coverage, other than coverage under the child health plan,
 15-6    from electing not to obtain or to discontinue that coverage for a
 15-7    child.
 15-8          (b)  A child is not subject to a waiting period adopted under
 15-9    Subsection (a) if:
15-10                (1)  the family lost coverage for the child as a result
15-11    of:
15-12                      (A)  termination of employment because of a
15-13    layoff or business closing;
15-14                      (B)  termination of continuation coverage under
15-15    the Consolidated Omnibus Budget Reconciliation Act of 1985 (Pub. L.
15-16    No. 99-272);
15-17                      (C)  change in marital status of a parent of the
15-18    child; or
15-19                      (D)  similar circumstance resulting in the
15-20    involuntary loss of coverage; or
15-21                (2)  the commission has determined that other grounds
15-22    exist for a good cause exception.
15-23          (c)  A child described by Subsection (b)(2) may enroll in the
15-24    child health plan program at any time, without regard to any open
15-25    enrollment period established under the enrollment procedures.
15-26          (d)  The waiting period required by Subsection (a) must:
15-27                (1)  extend for a period of 90 days after the date of
 16-1    application for coverage under the child health plan; and
 16-2                (2)  apply to a child who was covered by a health
 16-3    benefits plan at any time during the 90 days before the date of
 16-4    application for coverage under the child health plan, other than a
 16-5    child who was covered under a health benefits plan provided under
 16-6    Chapter 109.
 16-7          Sec. 62.155.  HEALTH PLAN PROVIDERS.  (a)  The commission, or
 16-8    the Texas Department of Health at the direction of and in
 16-9    consultation with the commission, shall select the health plan
16-10    providers under the program through open enrollment or a
16-11    competitive bid process.  A health plan provider must hold a
16-12    certificate of authority or other appropriate license issued by the
16-13    Texas Department of Insurance that authorizes the health plan
16-14    provider to provide the type of child health plan offered and must
16-15    satisfy, except as provided by this chapter, any applicable
16-16    requirement of the Insurance Code or another insurance law of this
16-17    state.
16-18          (b)  In selecting a health plan provider to provide or
16-19    arrange for services in a region of the state under a type of child
16-20    health plan that includes managed care organizations, the
16-21    commission shall give to the extent possible preference to a
16-22    managed care organization that provides similar coverage under a
16-23    contract with the Medicaid program or with the Texas Healthy Kids
16-24    Corporation in that region.
16-25          (c)  Section 533.006, Government Code, applies to a managed
16-26    care organization or other entity that:
16-27                (1)  contracts with the commission or with another
 17-1    agency or entity to operate a part of the child health plan under
 17-2    this chapter; and
 17-3                (2)  uses a provider network to provide or arrange for
 17-4    health care services under the child health plan.
 17-5          (d)  In selecting a health plan provider, the commission:
 17-6                (1)  may give preference to a person who provides
 17-7    similar coverage under the Medicaid program or through the Texas
 17-8    Healthy Kids Corporation; and
 17-9                (2)  shall provide for a choice of at least two health
17-10    plan providers in each metropolitan area.
17-11          (e)  In a metropolitan area in which the Medicaid managed
17-12    care program established under Chapter 533, Government Code, has
17-13    been implemented, at least one of the health plan providers must be
17-14    a managed care organization that is participating in the Medicaid
17-15    managed care program.
17-16          (f)  The commissioner may authorize an exception to
17-17    Subsection (b)(2) if there is only one acceptable applicant to
17-18    become a health plan provider in the metropolitan area.
17-19          Sec. 62.156.  HEALTH CARE PROVIDERS.  An individual health
17-20    care provider who provides health care services under the child
17-21    health plan must satisfy certification and licensure requirements,
17-22    as required by the commission, consistent with law.
17-23          CHAPTER 63.  HEALTH BENEFITS PLAN FOR CERTAIN CHILDREN
17-24          Sec. 63.001.  DEFINITION.  In this chapter, "commission"
17-25    means the Health and Human Services Commission.
17-26          Sec. 63.002.  HEALTH BENEFITS PLAN COVERAGE FOR CERTAIN
17-27    CHILDREN.  The commission shall develop and implement a program to
 18-1    provide health benefits plan coverage for a child who:
 18-2                (1)  is a qualified alien, as that term is defined by 8
 18-3    U.S.C. Section 1641(b);
 18-4                (2)  is younger than 19 years of age;
 18-5                (3)  entered the United States after August 22, 1996;
 18-6                (4)  has resided in the United States for less than
 18-7    five years; and
 18-8                (5)  meets the income eligibility requirement of, but
 18-9    is not eligible for assistance under:
18-10                      (A)  the child health plan program under Chapter
18-11    62; or
18-12                      (B)  the medical assistance program under Chapter
18-13    32, Human Resources Code.
18-14          Sec. 63.003.  BENEFITS COVERAGE REQUIRED.  To the extent
18-15    possible, the program required by Section 63.002 must provide
18-16    benefits comparable to the benefits provided under the child health
18-17    plan program under Chapter 62.
18-18          Sec. 63.004.  HEALTH BENEFITS PLAN PROVIDER.  (a)  A health
18-19    benefits plan provider under this chapter must:
18-20                (1)  hold a certificate of authority or other
18-21    appropriate license issued by the Texas Department of Insurance
18-22    that authorizes the health benefits plan provider to provide the
18-23    type of coverage to be offered through the program required by
18-24    Section 63.002; and
18-25                (2)  satisfy, except as provided by Subsection (b), any
18-26    other applicable requirement of the Insurance Code or another
18-27    insurance law of this state.
 19-1          (b)  Except as required by the commission, a health benefits
 19-2    plan provider under this chapter is not subject to a law that
 19-3    requires coverage or the offer of coverage of a health care service
 19-4    or benefit.
 19-5          Sec. 63.005.  COST-SHARING PAYMENTS.  (a)  Except as provided
 19-6    by Subsection (b), the commission may not require a child who is
 19-7    provided health benefits plan coverage under Section 63.002 and who
 19-8    meets the income eligibility requirement of the medical assistance
 19-9    program under Chapter 32, Human Resources Code, to pay a premium,
19-10    deductible, coinsurance, or other cost-sharing payment as a
19-11    condition of health benefits plan coverage under this chapter.
19-12          (b)  The commission may require a child described by
19-13    Subsection (a) to pay a co-payment as a condition of health
19-14    benefits plan coverage under this chapter that is equal to any
19-15    co-payment required under the child health plan program under
19-16    Chapter 62.
19-17          (c)  The commission may require a child who is provided
19-18    health benefits plan coverage under Section 63.002 and who meets
19-19    the income eligibility requirement of the child health plan program
19-20    under Chapter 62 to pay a premium, deductible, coinsurance, or
19-21    other cost-sharing payment as a condition of health benefits plan
19-22    coverage under this chapter.  The payment must be equal to any
19-23    premium, deductible, coinsurance, or other cost-sharing payment
19-24    required under the child health plan program under Chapter 62.
19-25          Sec. 63.006.  DISALLOWANCE OF MATCHING FUNDS FROM FEDERAL
19-26    GOVERNMENT.  Expenditures made to provide health benefits plan
19-27    coverage under this section may not be included for the purpose of
 20-1    determining the state children's health insurance expenditures, as
 20-2    that term is defined by 42 U.S.C. Section 1397ee(d)(2)(B), as
 20-3    amended.
 20-4          SECTION 2.  Chapter 109, Health and Safety Code, is amended
 20-5    by adding Subchapter F to read as follows:
 20-6                  SUBCHAPTER F.  STATE CHILD HEALTH PLAN
 20-7          Sec. 109.201.  DEFINITIONS.  In this subchapter:
 20-8                (1)  "Commission" means the Health and Human Services
 20-9    Commission.
20-10                (2)  "State child health plan" means the child health
20-11    plan program established under Chapter 62.
20-12          Sec. 109.202.  CHILD HEALTH PLAN COVERAGE.  (a)  The
20-13    commission may use appropriated funds, in accordance with the
20-14    General Appropriations Act, to purchase coverage under a health
20-15    benefit plan provided through the corporation for children who are
20-16    eligible for coverage under the state child health plan and to
20-17    contract with the corporation for other services under this
20-18    subchapter.
20-19          (b)  State child health plan coverage offered under this
20-20    subchapter must be approved by the commission.  The commission
20-21    shall ensure that coverage provided under this subchapter complies
20-22    with Chapter 62.
20-23          Sec. 109.203.  ELIGIBILITY.  Notwithstanding any other
20-24    provision of this chapter or the eligibility criteria established
20-25    under Section 109.061, an individual who is eligible for coverage
20-26    under the state child health plan, as determined by the commission,
20-27    is eligible for coverage provided through the corporation under
 21-1    this subchapter.
 21-2          Sec. 109.204.  COMMUNITY OUTREACH; ELIGIBILITY SCREENING.
 21-3    (a)  In connection with offering state child health plan coverage
 21-4    under this subchapter, the corporation, under the direction of the
 21-5    commission, may:
 21-6                (1)  conduct all or part of the community outreach and
 21-7    education campaign required under Section 62.056; and
 21-8                (2)  perform eligibility screening and enrollment
 21-9    services.
21-10          (b)  The eligibility screening and enrollment procedures used
21-11    by the corporation must comply with Chapter 62.
21-12          Sec. 109.205.  COMPETITIVE PROCUREMENT.  (a)  If the
21-13    corporation is selected to offer state child health plan coverage
21-14    under this subchapter and subsequently as required by the
21-15    commission or otherwise appropriate, the  corporation shall use a
21-16    competitive procurement process, satisfactory to the commission, to
21-17    ensure that the state receives the best value with respect to:
21-18                (1)  a contract with any third party administrator that
21-19    may provide services with respect to the state child health plan;
21-20    and
21-21                (2)  any eligible coverage providers providing health
21-22    benefits through the state child health plan.
21-23          (b)  As part of the competitive procurement process, the
21-24    corporation shall evaluate the demonstrated capacity of any third
21-25    party administrator to administer programs of similar size and
21-26    complexity.
21-27          Sec.  109.206.  REPORTING AND ACCOUNTABILITY.  (a)  The
 22-1    corporation shall report to the commission as required by the
 22-2    commission with respect to coverage and services provided under
 22-3    this subchapter.
 22-4          (b)  The commission shall establish a procedure to monitor
 22-5    the provision of coverage and services under this subchapter.
 22-6          SECTION 3.  Section 4, Article 3.51-6, Insurance Code, is
 22-7    amended to read as follows:
 22-8          Sec. 4.  EXEMPTIONS.  The provisions of this article shall
 22-9    not be applicable to:
22-10                (1)  credit accident and health insurance policies
22-11    subject to Article 3.53 of the Insurance Code, as amended;
22-12                (2)  any group specifically provided for or authorized
22-13    by law in existence and covered under a policy filed with the State
22-14    Board of Insurance prior to April 1, 1975;
22-15                (3)  accident and health coverages that are incidental
22-16    to any form of group automobile, casualty, property, or workmen's
22-17    compensation--employers' liability policies promulgated or approved
22-18    by the State Board of Insurance;
22-19                (4)  any policy or contract of insurance with a state
22-20    agency, department, or board providing health services to [all]
22-21    eligible persons under Chapter 32, Human Resources Code, or in
22-22    accordance with 42 U.S.C. Sections 1396-1396g, as amended, or 42
22-23    U.S.C. Section 1397aa et seq., as amended, [Section 6, The Medical
22-24    Assistance Act of 1967, as amended (Article 695j--1, Vernon's Texas
22-25    Civil Statutes), 343-353 (42 U.S.C.A. 1396-1396g), providing health
22-26    care and services] under a state plan.
22-27          SECTION 4.  Not later than September 1, 1999, the Health and
 23-1    Human Services Commission shall:
 23-2                (1)  develop the child health plan required under
 23-3    Chapter 62, Health and Safety Code, as added by this Act; and
 23-4                (2)  submit for approval a plan amendment relating to
 23-5    the child health plan under 42 U.S.C. Section 1397ff, as amended.
 23-6          SECTION 5.  If, before implementing any provision of Chapter
 23-7    62 or 63, Health and Safety Code, as added by this Act, the Health
 23-8    and Human Services Commission determines that a waiver or
 23-9    authorization from a federal agency is necessary for implementation
23-10    of that provision, the commission shall request the waiver or
23-11    authorization and may delay implementing that provision until the
23-12    waiver or authorization is granted.
23-13          SECTION 6.  The first money becoming available to the state
23-14    each fiscal year as a result of the Comprehensive Settlement
23-15    Agreement and Release filed in the case styled The State of Texas
23-16    v. The American Tobacco Co., et al., No.  5-96CV-91, in the United
23-17    States District Court, Eastern District of Texas, shall be used to
23-18    fund the child health plan program established by this state under
23-19    Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et
23-20    seq.), as amended.
23-21          SECTION 7.  The standing or other committees of the House of
23-22    Representatives and Senate of the 76th Legislature that have
23-23    jurisdiction over the Health and Human Services Commission and
23-24    other agencies related to the implementation of Chapter 62, Health
23-25    and Safety Code, as added by this Act, as identified by the speaker
23-26    of the house of representatives and the lieutenant governor, shall:
23-27                (1)  monitor the implementation of Chapter 62, Health
 24-1    and Safety Code, as added by this Act; and
 24-2                (2)  perform other related duties as required by the
 24-3    speaker of the house of representatives and lieutenant governor, as
 24-4    appropriate.
 24-5          SECTION 8.  (a)  Not later than September 1, 2000, the Health
 24-6    and Human Services Commission shall establish and implement the
 24-7    health benefits plan coverage program required by Chapter 63,
 24-8    Health and Safety Code, as added by this Act.
 24-9          (b)  The commission may delay implementation of the health
24-10    benefits plan coverage program until a plan amendment relating to
24-11    the child health plan under 42 U.S.C. Section 1397ff, as amended,
24-12    is approved.
24-13          SECTION 9.  The state shall provide coverage under the state
24-14    Medicaid program or under a program established under Title XXI of
24-15    the Social Security Act (42 U.S.C. Section 1397aa et seq.), as
24-16    amended, to a child described by Section 63.002, Health and Safety
24-17    Code, as added by this Act, if the federal government authorizes
24-18    the state to provide that coverage.  The Health and Human Services
24-19    Commission or any other appropriate agency shall comply with any
24-20    prerequisites under the federal law to providing the coverage.
24-21          SECTION 10.  The importance of this legislation and the
24-22    crowded condition of the calendars in both houses create an
24-23    emergency and an imperative public necessity that the
24-24    constitutional rule requiring bills to be read on three several
24-25    days in each house be suspended, and this rule is hereby suspended,
24-26    and that this Act take effect and be in force from and after its
24-27    passage, and it is so enacted.