HBA-MPM C.S.H.B. 2420 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2420
By: Coleman
Public Health
4/17/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, parents of children receiving Medicaid are only eligible for
Medicaid if they have net incomes below 17 percent of the federal poverty
level after such deductions as work expenses and child care.  This criteria
is also applicable to individuals receiving Temporary Assistance for Needy
Families (TANF) cash assistance.  The federal Social Security Act allows
states to expand Medicaid coverage to parents with higher incomes by
increasing the amounts that are deducted from their gross incomes so that
the amount of their net income remains below 17 percent of the federal
poverty level.  Texas does not take advantage of this federal provision.
C.S.H.B. 2420 requires the Health and Human Services Commission to conduct
a pilot program to provide Medicaid coverage for parents of children
enrolled in Medicaid. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Health and Human Services
Commission in SECTION 1 of this bill. 

ANALYSIS

C.S.H.B. 2420 requires the Health and Human Services Commission (HHSC) by
rule to develop and implement a pilot program in accordance with federal
law to provide Medicaid coverage under the state Medicaid program to a
low-income individual who is the parent of a child receiving Medicaid and
who is otherwise not eligible for Medicaid.   HHSC is required to implement
the pilot program in two counties, one with a population of 29,000 or less
and one with a population of 37,000 or less. The bill requires HHSC to
submit a report to the legislature regarding the effectiveness, including
the cost-effectiveness, of the pilot program no later than December 1,
2002.  The report must include the effect of the pilot program on the
enrollment of children in the state Medicaid program and recommendations
regarding elimination, continuation, or expansion of the pilot program.
The pilot program expires September 1, 2003. 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2420 differs from the original by requiring the Health and Human
Services Commission (HHSC) to implement the pilot program in two counties,
one with a population of 29,000 or less and one with a population of 37,000
or less.  The original bill required HHSC to determine the pilot program
sites.  

The substitute provides that the report submitted by HHSC to the
legislature regarding the pilot program must include the effect of the
program on the enrollment of children in the state Medicaid program.