HBA-MPM C.S.H.B. 2807 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2807
By: Kitchen
Public Health
5/15/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Texas has enacted many laws that address the provision of health coverage
for its uninsured children. However, low-income adults are often unable to
obtain affordable, quality health care. Workers in families that fall below
200 percent of the federal poverty level are less likely to receive health
insurance through their employer. More than two-thirds of uninsured,
non-retired adults age 18 and older, have a job.  A January 1999 poll
conducted by the W.K. Kellogg Foundation indicated that 86 percent of
Americans believe that working poor families should have access to health
care coverage.  Currently, there are a number of local initiatives that
address the health needs of low-income, uninsured adults who do not qualify
for Medicaid.  Through a demonstration project, these initiatives could
receive federal matching funds to expand health coverage for low-income
adults.  C.S.H.B. 2807 requires the Health and Human Services Commission to
establish such a demonstration 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

C.S.H.B. 2807 amends the Human Resources Code to require the Health and
Human Services Commission (HHSC) to establish a demonstration project
(project) to provide medical assistance to an adult who meets the income
eligibility criteria set by HHSC, is not otherwise eligible for medical
assistance, and is not covered by a health benefits plan offering adequate
coverage.  HHSC  is required to establish a family income eligibility limit
in conjunction with local governmental agencies that make funds available
to HHSC for the project so that only an individual whose family income is
at or below 200 percent of the federal poverty level is eligible for
participation and to design the components of the project including the
adoption of procedures for reporting and monitoring.  In establishing the
project, HHSC is required to ensure that the project is financed using
funds made available by certain local governmental entities to HHSC for
matching purposes to maximize federal funds for the medical assistance
program and that a participant in the project is not subject to a
limitation of prescription drug benefits under the medical assistance
program.  The bill specifies that the manner in which a governmental entity
makes funds available for matching purposes must include an option for the
entity to be able to certify the amount of funds considered available
instead of sending the funds to the state. 

The bill requires the Texas Department of Health (TDH) to administer the
project at the direction of HHSC and to select one or more municipalities
or counties in which to implement the project.  One selected county must
have a population of more than 725,000 or at least one municipality must
have a population of more than 600,000.  The bill provides that the project
may be implemented in a multi-county region in which at least one county
has a population of more than 725,000.  TDH is required to implement the
project no later than January 1, 2002.  The bill requires TDH to evaluate
and report to the legislature on the operation and cost-effectiveness of
the project no later than December 1 of each even-numbered year.  

EFFECTIVE DATE
 
On passage, of if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2807 differs from the original by requiring the Health and Human
Services Commission (HHSC), in conjunction with local governmental entities
that make funds available for the project, to establish the eligibility
limit of the demonstration project, which cannot be higher than or at 200
percent of the federal poverty level.  The original set the income
eligibility limit at 100 percent of the federal poverty level. 

The substitute requires HHSC in conjunction with local governmental
entities that make funds available to HHSC to design the components of the
demonstration project.  The bill requires HHSC to ensure that a project
participant is not subject to the prescription drug benefit limitation
under the medical assistance program.  The substitute specifies that the
manner in which a governmental entity makes funds available for the project
for matching purposes must include an option for the entity to make the
funds available by certification rather than sending the funds to the
state.   

The substitute permits the Texas Department of Health (TDH) to select
municipalities with a population of more than 600,000 for purposes of
participating in the project, in addition to counties with populations of
more than 725,000 as set forth in the original.  The substitute also
authorizes the participation of a multicounty region in the project.