HBA-DMH, MPM H.B. 896 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 896 By: Coleman Public Health 2/23/2001 Introduced BACKGROUND AND PURPOSE Recent advancements in HIV and AIDS treatment have brought renewed health to many people living with HIV and AIDS. New medications have been developed that, when taken together, can slow the spread of HIV. However, combination drug therapy is expensive. When limited income individuals with HIV or AIDS do not receive appropriate treatment, they debilitate physically to the point where they qualify for disability related Medicaid, one of the most expensive categories of Medicaid coverage. Investing up front in appropriate maintenance care for this population would reduce such costs. In 1997, the legislature directed the Health and Human Services Commission (HHSC) to maximize federal funding under Medicaid for treatment of HIV and AIDS. House Bill 896 requires HHSC to develop a demonstration project to offer pharmaceutical treatment under Medicaid to HIV and AIDS patients, and requires HHSC to report on the cost effectiveness of the project. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 896 amends the Human Resources Code to require the Health and Human Services Commission (HHSC) to establish in at least two counties with a high prevalence of HIV infection or AIDS a demonstration project (project) to provide persons with HIV infection or AIDS with medical services, drug treatments and medications, vaccinations, and diagnostic testing and services through the medical assistance program. The bill establishes eligibility requirements for project participants, and provides that the participants are not subject to the monthly three-prescription limit under the medical assistance program. The bill requires HHSC to submit a biennial report to the legislature no later than December 1 of each even numbered year, and to evaluate the project's cost-effectiveness no later than December 1, 2006. If the evaluation results indicate that the project is cost-effective, HHSC is required to incorporate a request for funding for the expansion of the project in its request for the next state fiscal biennium. The project expires September 1, 2007. EFFECTIVE DATE September 1, 2001.