By Kitchen H.B. No. 1284
77R3947 JAT-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Texas Healthy Kids Corporation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 154.182(b), Family Code, is amended to
1-5 read as follows:
1-6 (b) Except as provided for by Subdivision (6), in
1-7 determining the manner in which health insurance for the child is
1-8 to be ordered, the court shall render its order in accordance with
1-9 the following priorities, unless a party shows good cause why a
1-10 particular order would not be in the best interest of the child:
1-11 (1) if health insurance is available for the child
1-12 through the obligor's employment or membership in a union, trade
1-13 association, or other organization, the court shall order the
1-14 obligor to include the child in the obligor's health insurance;
1-15 (2) if health insurance is not available for the child
1-16 through the obligor's employment but is available for the child
1-17 through the obligee's employment or membership in a union, trade
1-18 association, or other organization, the court may order the obligee
1-19 to provide health insurance for the child, and, in such event,
1-20 shall order the obligor to pay additional child support to be
1-21 withheld from earnings under Chapter 158 to the obligee for the
1-22 actual cost of the health insurance for the child;
1-23 (3) if health insurance is not available for the child
1-24 under Subdivision (1) or (2), the court shall order the obligor to
2-1 provide health insurance for the child if the court finds that
2-2 health insurance is available for the child from another source and
2-3 that the obligor is financially able to provide it;
2-4 (4) if health insurance is not available for the child
2-5 under Subdivision (1), (2), or (3), the court shall order the
2-6 obligor to apply for coverage through the state child health plan
2-7 [Texas Healthy Kids Corporation established] under Chapter 62
2-8 [109], Health and Safety Code;
2-9 (5) if health coverage is not available for the child
2-10 under Subdivision (1), (2), (3), or (4), the court shall order the
2-11 obligor to pay the obligee, in addition to any amount ordered under
2-12 the guidelines for child support, a reasonable amount each month as
2-13 medical support for the child to be withheld from earnings under
2-14 Chapter 158; or
2-15 (6) notwithstanding Subdivisions (1) through (3), an
2-16 obligor whose employer, union, trade association, or other
2-17 organization does not offer a child/children coverage option in
2-18 lieu of a spouse/child/children option of health insurance coverage
2-19 may elect to apply for coverage through the state child health plan
2-20 [Texas Healthy Kids Corporation]. An obligor required to pay
2-21 additional child support to an obligee for health insurance
2-22 coverage may elect to apply for coverage through the state child
2-23 health plan [Texas Healthy Kids Corporation] if the obligee's
2-24 employer, union, trade association, or other organization does not
2-25 offer a child/children coverage option in lieu of a
2-26 spouse/child/children option of health insurance coverage.
2-27 SECTION 2. Section 62.055, Health and Safety Code, is
3-1 amended to read as follows:
3-2 Sec. 62.055. CONTRACTS FOR IMPLEMENTATION OF CHILD HEALTH
3-3 PLAN. (a) It is the intent of the legislature that the commission
3-4 maximize the use of private resources in administering the child
3-5 health plan created under this chapter. In administering the child
3-6 health plan, the commission may contract with:
3-7 (1) a third party administrator to provide enrollment
3-8 and related services under the state child health plan; or
3-9 (2) another entity [, including the Texas Healthy Kids
3-10 Corporation under Subchapter F, Chapter 109,] to obtain health
3-11 benefit plan coverage for children who are eligible for coverage
3-12 under the state child health plan.
3-13 (b) [If the commission contracts with the Texas Healthy Kids
3-14 Corporation under Subchapter F, Chapter 109, to administer any part
3-15 of the child health plan created under this chapter, the
3-16 commission, prior to entering into any contract with the
3-17 corporation, shall conduct a readiness review of the corporation to
3-18 determine that the corporation and its contractors are able to
3-19 implement the child health plan on a statewide basis.
3-20 Notwithstanding the foregoing, if the board of directors of the
3-21 corporation, by a vote of the board, determines that the
3-22 corporation is unable to implement the child health plan on a
3-23 statewide basis, the commission may not contract with the
3-24 corporation under this section.]
3-25 [(c) The commission's review of the corporation and its
3-26 contractors under Subsection (b) shall be based at a minimum on the
3-27 following criteria:]
4-1 [(1) adequate and appropriate staffing, including
4-2 contracts with third parties;]
4-3 [(2) adequate and properly documented policies and
4-4 procedures;]
4-5 [(3) fiscal soundness;]
4-6 [(4) compliance with all applicable federal and state
4-7 standards, rules, and regulations;]
4-8 [(5) necessary accommodations for the needs of
4-9 families with special needs children;]
4-10 [(6) necessary partnerships with other programs
4-11 addressing children's health care needs; and]
4-12 [(7) adequate information systems, electronic
4-13 interfaces, and business processes.]
4-14 [(d)] A third party administrator or other entity may
4-15 perform tasks under the contract that would otherwise be performed
4-16 by the Texas Department of Health or Texas Department of Human
4-17 Services under this chapter.
4-18 (c) [(e)] The commission shall:
4-19 (1) retain all policymaking authority over the state
4-20 child health plan;
4-21 (2) procure all contracts with a third party
4-22 administrator or other entity through a competitive procurement
4-23 process in compliance with all applicable federal and state laws or
4-24 regulations; and
4-25 (3) ensure that all contracts with child health plan
4-26 providers under Section 62.155 are procured through a competitive
4-27 procurement process in compliance with all applicable federal and
5-1 state laws or regulations.
5-2 SECTION 3. Section 62.056(a), Health and Safety Code, is
5-3 amended to read as follows:
5-4 (a) The commission shall conduct a community outreach and
5-5 education campaign to provide information relating to the
5-6 availability of health benefits for children under this chapter.
5-7 The commission shall conduct the campaign in a manner that promotes
5-8 enrollment in, and minimizes duplication of effort among, all state
5-9 administered child health programs [and, subject to the approval of
5-10 the board of the Texas Healthy Kids Corporation, the program
5-11 offered under Chapter 109].
5-12 SECTION 4. Section 62.103(b), Health and Safety Code, is
5-13 amended to read as follows:
5-14 (b) The form and procedures must be coordinated with forms
5-15 and procedures under the Medicaid program [and those used by the
5-16 Texas Healthy Kids Corporation] to ensure that, to the extent
5-17 possible, there is a single consolidated application to seek
5-18 assistance under this chapter or the Medicaid program [or from the
5-19 corporation].
5-20 SECTION 5. Section 62.154(d), Health and Safety Code, is
5-21 amended to read as follows:
5-22 (d) The waiting period required by Subsection (a) must:
5-23 (1) extend for a period of 90 days after the last date
5-24 on which the applicant was covered under a health benefits plan;
5-25 and
5-26 (2) apply to a child who was covered by a health
5-27 benefits plan at any time during the 90 days before the date of
6-1 application for coverage under the child health plan, other than a
6-2 child who was covered under a health benefits plan provided under
6-3 former Chapter 109.
6-4 SECTION 6. Section 62.155(c), Health and Safety Code, is
6-5 amended to read as follows:
6-6 (c) In selecting a health plan provider, the commission:
6-7 (1) may give preference to a person who provides
6-8 similar coverage under the Medicaid program [or through the Texas
6-9 Healthy Kids Corporation]; and
6-10 (2) shall provide for a choice of at least two health
6-11 plan providers in each metropolitan area.
6-12 SECTION 7. Chapter 109, Health and Safety Code, is repealed.
6-13 SECTION 8. Section 171.063(h), Tax Code, is repealed.
6-14 SECTION 9. (a) On the effective date of this Act, the
6-15 comptroller shall transfer all money in the Texas healthy kids fund
6-16 under Section 109.002, Health and Safety Code, to a dedicated
6-17 account in the general revenue fund. Money in the account may be
6-18 appropriated only to provide health care for low-income residents
6-19 of this state or to provide health benefits program coverage for
6-20 public school district employees.
6-21 (b) On the effective date of this Act, the program provided
6-22 by the Texas Healthy Kids Corporation is terminated. Not later
6-23 than October 1, 2001, the board of directors of the corporation
6-24 shall begin the steps necessary to dissolve the corporation and
6-25 wind up its affairs. The corporation shall make all reasonable
6-26 efforts to ensure that the children formerly provided health
6-27 benefit program coverage under the corporation's program are
7-1 provided health benefit program coverage by some other entity.
7-2 SECTION 10. Section 8 of this Act takes effect January 1,
7-3 2002, and applies only to a tax report originally due on or after
7-4 that date.
7-5 SECTION 11. Except as provided in Section 10 of this Act,
7-6 this Act takes effect September 1, 2001.