SRC-JEC S.B. 1052 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1052
77R2896 SGA-DBy: Shapleigh
Health & Human Services
3/20/2001
As Filed


DIGEST AND PURPOSE 

Currently, the Medicaid reimbursement and Children's Health Insurance
Program (CHIP) capitation rates for the 43 border counties are
significantly lower than those of other counties in the state, due to
historical underutilization of health care services. As proposed, S.B. 1052
establishes a committee to develop a strategic plan for eliminating the
disparities between the border region and other areas of the state;
requires the Health and Human Services Commission (commission)  to raise
the Medicaid reimbursement and CHIP capitation rates for the border region
to a statewide average; provides a financial incentive to border
physicians; and requires the commission to contract with a public
university to measure the effects of the rate increases.  

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 531B, Government Code, by adding Section
531.0221, as follows: 

Sec. 531.0221.  RATES AND EXPENDITURES IN THE TEXAS-MEXICO BORDER REGION.
(a)  Defines "child health plan program," "committee," and "Texas-Mexico
border region." 
 
(b)  Requires the commissioner of health and human services (commissioner)
to appoint an advisory committee to develop a strategic plan for
eliminating the disparities between the Texas-Mexico border region and
other areas of the state in certain rates and expenditures related to
Medicaid and the child health plan program. 
  
(c)  Requires the committee periodically to perform the research necessary
to analyze and compare the rates and expenditures described by Subsection
(b) and, not later than the date specified by the commissioner, produce a
report based on the results of that analysis and comparison. 

(d)  Requires the committee to, as part of the report required by
Subsection (c), make recommendations to the commissioner for addressing the
problems created by disparities documented in the report, including
recommendations for allocation of funds. 

(e)  Requires the commissioner to appoint nine members to the advisory
committee in a manner that ensures that the composition of the committee
meets certain criteria.  

(f)  Requires the committee to elect officers from among the members of the
committee. 

(g)  Requires appointments to the committee to be made without regard to
the race, color, disability, sex, religion, age, or national origin of the
appointees. 
 
(h)  Prohibits a member of the committee from receiving compensation, but
entitles a committee member to reimbursement  of travel expenses incurred
by the member while conducting the business of the committee as provided by
the General Appropriations Act. 

(i)  Requires the Health and Human Services Commission (commission) to
provide administrative support and resources to the committee as necessary
for the committee to perform the duties under this section. 

(j)  Provides that the committee is not subject to Chapter 2110 (State
Agency Advisory Committees), Government Code. 

(k)  Requires the commission, with advice from the committee, to ensure
that:  the disparities in rates and expenditures described by Subsection
(b) are eliminated as soon as practicable so that the rates and
expenditures in the Texas-Mexico border region equal the statewide average
rates and expenditures; and a physician providing a service to a Medicaid
recipient in the Texas-Mexico border region receives, in addition to
reimbursement at the rate required under Subdivision (1), a bonus in the
amount of 10 percent of the reimbursement customarily provided to a
physician providing that service in another region of the state. 

(l)  Requires the commission, for purposes of Subsection (k), to exclude
data from the Texas-Mexico border region in determining the statewide
average capitation rates under Medicaid managed care and the child health
plan program and the statewide average total professional services
expenditures per Medicaid recipient or per child enrolled in the child
health plan program. 

(m)  Authorizes the commission, with advice from the committee and other
appropriate groups, to vary the amount of any rate increases for
professional services required by Subsection (k) according to the type of
service provided. 

(n)  Requires the commission to develop mechanisms to pass any rate
increase required by Subsection (k) directly to providers, including
providers in Medicaid managed care service delivery areas with health
maintenance organization, prepaid health plan, or primary care case
management models. 

(o)  Requires the commission to contract with a public university to:
measure changes occurring from September 1, 2001, to August 31, 2004, in
the number of health care providers participating in the Medicaid program
or the child health plan program in the Texas-Mexico border region and
resulting effects on consumer access to health care and consumer
utilization; determine the effects, if any, of the changes in rates and
expenditures required by Subsection (k); and not later than December 1,
2004, submit a report to the legislature. 

  (p)  Provides that this section expires September 1, 2011.
 
SECTION 2.  Requires a state agency, if before implementing any provision
of this Act it determines that a waiver or authorization from a federal
agency is necessary for implementation of that provision, to request the
waiver or authorization and authorizes the state agency to delay
implementing that provision until the waiver or authorization is granted. 

SECTION 3.  Requires the changes in rates and expenditures required by
Section 531.0221(k), Government Code, as added by this Act, to be initiated
not later than September 1, 2002. Requires the advisory committee on
funding disparities in health programs to deliver the first report required
by Section 531.0221(c), Government Code, as added by this Act, not later
than September 1, 2002. 
 
SECTION 4.  Effective date: September 1, 2001.