By Hawley H.B. No. 2424 77R6551 JAT-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to payment for services provided by rural hospitals and 1-3 physicians under the state child health plan. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter D, Chapter 62, Health and Safety Code, 1-6 is amended by adding Section 62.157 to read as follows: 1-7 Sec. 62.157. PAYMENTS TO RURAL HEALTH CARE PROVIDERS. (a) 1-8 In this section: 1-9 (1) "Rural hospital" means a hospital that: 1-10 (A) has 100 or fewer beds; and 1-11 (B) is located in a county with a population of 1-12 100,000 or less. 1-13 (2) "Rural physician" means a physician who practices 1-14 in a county with a population of 100,000 or less. 1-15 (b) The commission shall ensure that a health plan provider 1-16 pays a rural hospital for services provided under this chapter the 1-17 state Medicaid program prospective payment system rate. 1-18 (c) At the end of a rural hospital's fiscal year, the health 1-19 plan provider or the commission shall determine what the amount of 1-20 reimbursement to the hospital would have been if the health plan 1-21 provider had reimbursed the hospital for costs using a method 1-22 similar to a method authorized under the Tax Equity and Fiscal 1-23 Responsibility Act of 1982, Pub. L. No. 97-248, without the 1-24 imposition of a cap on costs. 2-1 (d) If the commission or the health plan provider determines 2-2 under Subsection (c) that the amount that would have been 2-3 reimbursed to the hospital is greater than the amount actually 2-4 received by the hospital under the prospective payment system under 2-5 Subsection (b), the health plan provider shall pay the difference 2-6 to the hospital. 2-7 (e) The commission shall ensure that a health plan provider 2-8 reimburses a rural physician for services provided by the physician 2-9 under this chapter using the state Medicaid program fee schedule 2-10 for physicians. 2-11 SECTION 2. (a) The Health and Human Services Commission 2-12 shall, not later than September 15, 2001, submit for approval a 2-13 plan amendment relating to the state child health plan under 42 2-14 U.S.C. Section 1397ff, as amended, as necessary to comply with the 2-15 change in law made by this Act. 2-16 (b) The Health and Human Services Commission may delay, 2-17 until approval of the amended state child health plan, 2-18 implementation of the changes to rural hospital and physician 2-19 payment rates under Section 62.157, Health and Safety Code, as 2-20 added by this Act. 2-21 SECTION 3. This Act takes effect September 1, 2001.