SRC-JEC H.B. 2178 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2178
77R12688 SMJ-DBy: Salinas (Moncrief)
Health & Human Services
5/9/2001
Engrossed


DIGEST AND PURPOSE 

From February 1997 through January 2001, the Health and Human Services
medicaid fraud division found that 1170 children in Texas younger than 10
years of age were diagnosed as chemically dependent or chemically abusive,
and 3779 children who are 10 through 13 years of age have received chemical
dependency treatment.  Some believe that some of these diagnoses are
incorrect and fraudulent and that treatment for chemical dependency is
unwarranted for some of these children. After chemical dependency services
are rendered and a Medicaid claim is filed with the National Health
Insurance Corporation (NHIC), the child's treatment history is entered into
the NHIC database that can then be accessed by private insurance companies
when researching potential policyholders for preexisting conditions.
Consequently, children can be stigmatized and penalized throughout their
lives for an incorrect or fraudulent diagnosis of chemical dependency or
abuse. H.B. 2178 requires a diagnosis of chemical dependency to be expunged
from a child's records following the final conviction of a chemical
dependency treatment provider for submitting a fraudulent claim for
Medicaid reimbursement.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 531C, Government Code, by adding Section
531.112, as follows: 

Sec. 531.112.  EXPUNCTION OF INFORMATION RELATED TO CERTAIN CHEMICAL
DEPENDENCY DIAGNOSES IN CERTAIN RECORDS.  (a) Defines "chemical dependency"
and "child." 

(b) Requires the Health and Human Services Commission (commission) or other
health and human services agency that operates a portion of the state
Medicaid program, following the final conviction of a chemical dependency
treatment provider for an offense, an element of which involves submitting
a fraudulent claim for reimbursement for services under the state Medicaid
program, to expunge or provide for the expunction of a diagnosis of
chemical dependency in a  child that has been made by the treatment
provider and entered in any of certain records. 

SECTION 2.  Effective date: September 1, 2001.