HBA-CCH H.B. 1591 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1591 By: Kitchen Public Health 2/27/2001 Introduced BACKGROUND AND PURPOSE Managed care organizations (organization) are asked to submit information to the Texas Department of Health about the encounters or services delivered under their contracts. Encounter data include information regarding the patient's medical history, diagnosis, and treatment, and are used to measure utilization, immunization rates, health care quality, and outcomes and to assess contract performance, the value of services to patients, and the appropriate use of state funds. Furthermore, states use encounter data to assess managed care fraud and abuse. If health care providers do not report complete and accurate encounter data to the organization, the state cannot effectively evaluate Medicaid managed care. House Bill 1591 provides for reporting and certifying the validity of encounter data. 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 1591 amends the Government Code relating to reporting and certifying Medicaid managed care encounter data. In determining premium payment rates and other amounts paid to managed care organizations under a managed care plan, the bill prohibits the Health and Human Services Commission (HHSC) from basing or deriving the rates or amounts on or from encounter data, or incorporating an analysis of encounter data, unless a certifier of encounter data (certifier) certifies the encounter data using criteria prescribed in the bill. H.B. 1591 requires HHSC to collaborate with managed care organizations that contract with HHSC and health care providers under the organizations' provider networks to develop incentives and mechanisms to encourage providers to report complete and accurate encounter data to managed care organizations in a timely manner. The bill requires the person acting as the state Medicaid director to appoint a certifier no later than January 1, 2002, and provides qualifications for the certifier. The bill prohibits a person from being appointed as the certifier if the person participated with HHSC in developing premium payment rates for managed care organizations under managed care plans in Texas during the three-year period before the date the certifier is appointed. The bill requires the certifier to certify the completeness, accuracy, and reliability of encounter data for each state fiscal year. The bill requires HHSC to make available to the certifier all records and all appropriate data, and requires HHSC to provide to the certifier selected resources and to assist with obtaining, compiling, and interpreting the records and data. EFFECTIVE DATE September 1, 2001.