HBA-MPM S.B. 1156 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1156
By: Zaffirini
Public Health
4/30/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, the state of Texas and the nation are experiencing an increase
in cost per Medicaid recipient due to the general rise in health care
utilization, the recent rise in caseload, the increasing utilization and
prices of prescription drugs, and a comparative decrease in federal
funding. Senate Bill 1156 contains provisions for Medicaid reform,
including the establishment of a demonstration project to provide
individuals with psychotropic medications and related services, the
establishment of a Medicaid Legislative Oversight Committee (committee),
the transfer of authority relating to the administration of the Medicaid
program from the Texas Department of Health to the Health and Human
Services Commission if approved by the committee, and additional reporting
and budgetary requirements. 

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

Senate Bill 1156 amends the Human Resources Code to require the Health and
Human Services Commission (HHSC) in its rules and standards governing the
Medicaid vendor drug program to provide for cost-sharing by recipients of
prescription drug benefits under Medicaid program in a manner that ensures
that recipients with higher levels of income are required to pay
progressively higher percentages of the costs of prescription drugs (Sec.
32.024).  The bill requires HHSC in its adoption of reasonable rules and
standards governing the allocation of any funds appropriated for rate
increases for physician services and outpatient services to establish a
provider reimbursement methodology that recognizes and rewards high volume
providers (Sec. 32.028). 

S.B. 1156 requires HHSC to establish a demonstration project to provide
psychotropic medications and related laboratory and medical services to a
person through Medicaid.  The bill sets forth the eligibility criteria for
participation in the project and requires HHSC to provide each participant
in the project with a 12-month period of continuous eligibility for
participation in the project.  The bill specifies that participation in the
project does not entitle a participant to other services provided under
Medicaid.  The bill requires HHSC to establish an appropriate enrollment
limit and once the limit is reached, to establish a waiting list for
enrollment in the project.  HHSC is authorized to the extent permitted by
federal law to require a participant in the project to make cost-sharing
payments for services provided through the project.  HHSC is required to
use existing resources to fund the project to the maximum extent possible.
The bill sets forth reporting and evaluation requirements.  The program
ends September 1, 2009 (Sec. 32.053). 

S.B. 1156 amends the Government Code to require HHSC to develop and
implement strategies to improve management of the cost, quality, and use of
services provided under the Medicaid program to achieve administrative
efficiency and cost savings (Sec. 531.02103)  To achieve these goals as
well as increased accountability the bill authorizes HHSC to transfer
authority relating to administration of the Medicaid program from a health
and human services agency to HHSC, it the transfer is approved by the
Medicaid legislative oversight committee (committee) established by the
bill (Secs. 531.02101 and 531.02102 and SECTION 14).  The bill sets forth
provisions for the transfer from the Texas Department of Health to HHSC on
January 1, 2002 or an earlier date specified by HHSC (SECTION 11).  The
bill provides that HHSC must notify the Legislative Budget Board and the
governor's office of budget and planning no later than the 30th day before
the effective date of an authorized transfer (Sec. 531.02101). The bill
requires the lieutenant governor and speaker of the house of
representatives to appoint the committee members as soon as possible after
this bill takes effect (SECTION 14). 

The bill requires HHSC to submit the consolidated health and human services
budget to the lieutenant governor, the speaker of the house of
representatives, the comptroller, the governor's office of planning and
budget, each member of the appropriations committees of the senate and
house of representatives, and each member of the standing committees of the
senate and house of representatives with responsibility for oversight of
health and human services issues (Sec. 531.026). The bill requires HHSC to
include in the consolidated budget recommendation a consolidated Medicaid
appropriations request for the subsequent fiscal biennium and to prepare a
comprehensive Medicaid operating budget at the beginning of each fiscal
year and sets forth provisions for the development of the request and
budget.  The bill also requires HHSC to monitor all Medicaid expenditures
and submit quarterly expenditure reports (Secs. 531.0261 and 531.0272). 

The bill requires HHSC no later than December 1 of each even-numbered year
to prepare and deliver to the governor, lieutenant governor, speaker of the
house of representatives and each member of the legislature a report that
identifies the Medicaid reimbursement rates for each county in Texas and
compares the state's Medicaid reimbursement rates to those of the top 15
industrial states (Sec. 531.055). 

S.B. 1156 requires HHSC to evaluate on-site inspection procedures of
managed care organizations (organizations) contracting with HHSC for
purposes of providing services under the Medicaid managed care program
(program) and methods to streamline inspection procedures and reporting
requirements.  The bill also requires HHSC to require the organizations to
evaluate reporting requirements to identify methods of reducing the
administrative burden of health care providers.  The bill requires HHSC to
submit a report on streamlining methods to the legislature  no later than
November 1, 2002.  This provision expires September 1, 2002 (Sec. 533.0055
and SECTION 13).  

HHSC shall require a health and human services agency (agency) implementing
a Medicaid managed care program to provide to each other agency
implementing the program information reported to that agency by an
organization or health care provider providing services to recipients (Sec.
533.016). 

EFFECTIVE DATE

September 1, 2001.  Provisions related to the demonstration projects for
psychotropic medications, the evaluation of reporting requirements and
inspection procedures for Medicaid managed care take effect on passage, or
if the Act does not receive the necessary vote, the provisions take effect
September 1, 2001.