By Chavez                                             H.B. No. 2470
         77R2896 SGA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to rates and expenditures under the Medicaid and state
 1-3     child health plan program in the Texas-Mexico border region.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter B, Chapter 531, Government Code, is
 1-6     amended by adding Section 531.0221 to read as follows:
 1-7           Sec. 531.0221.  RATES AND EXPENDITURES IN THE TEXAS-MEXICO
 1-8     BORDER REGION.  (a)  In this section:
 1-9                 (1)  "Child health plan program" means the state child
1-10     health plan program authorized by Chapter 62, Health and Safety
1-11     Code.
1-12                 (2)  "Committee" means the advisory committee on
1-13     funding disparities in health programs appointed by the
1-14     commissioner under this section.
1-15                 (3)  "Texas-Mexico border region" has the meaning
1-16     assigned by Section 2056.002, Government Code.
1-17           (b)  The commissioner shall appoint an advisory committee to
1-18     develop a strategic plan for eliminating the disparities between
1-19     the Texas-Mexico border region and other areas of the state in:
1-20                 (1)  capitation rates under Medicaid managed care and
1-21     the child health plan program;
1-22                 (2)  fee for service reimbursement rates  under the
1-23     Medicaid program and the child health plan program for inpatient
1-24     and outpatient hospital services; and
 2-1                 (3)  total professional services expenditures per
 2-2     Medicaid recipient or per child enrolled in the child health plan
 2-3     program.
 2-4           (c)  Periodically the committee shall perform the research
 2-5     necessary to analyze and compare the rates and expenditures
 2-6     described by Subsection (b) and, not later than the date specified
 2-7     by the commissioner, produce a report based on the results of that
 2-8     analysis and comparison.
 2-9           (d)  The committee shall, as part of the report required by
2-10     Subsection (c), make recommendations to the commissioner for
2-11     addressing the problems created by disparities documented in the
2-12     report, including recommendations for allocation of funds.
2-13           (e)  The commissioner shall appoint nine members to the
2-14     advisory committee in a manner that ensures that the committee:
2-15                 (1)  represents the spectrum of geographic areas
2-16     included in the Texas-Mexico border region;
2-17                 (2)  includes persons who are knowledgeable regarding
2-18     the Medicaid program, including Medicaid managed care, and the
2-19     child health plan program; and
2-20                 (3)  represents the interests of physicians, hospitals,
2-21     patients, managed care organizations, state agencies involved in
2-22     the management and delivery of medical resources of any kind,
2-23     affected communities, and other areas of the state.
2-24           (f)  The committee shall elect officers from among the
2-25     members of the committee.
2-26           (g)  Appointments to the committee shall be made without
2-27     regard to the race, color, disability, sex, religion, age, or
 3-1     national origin of the appointees.
 3-2           (h)  A member of the committee may not receive compensation,
 3-3     but is entitled to reimbursement  of travel expenses incurred by
 3-4     the member while conducting the business of the committee as
 3-5     provided by the General Appropriations Act.
 3-6           (i)  The commission shall provide administrative support and
 3-7     resources to the committee as necessary for the committee to
 3-8     perform the duties under this section.
 3-9           (j)  The committee is not subject to Chapter 2110, Government
3-10     Code.
3-11           (k)  With advice from the committee, the commission shall
3-12     ensure that:
3-13                 (1)  the disparities in rates and expenditures
3-14     described by Subsection (b) are eliminated as soon as practicable
3-15     so that the rates and expenditures in the Texas-Mexico border
3-16     region equal the statewide average rates and expenditures; and
3-17                 (2)  a physician providing a service to a Medicaid
3-18     recipient in the Texas-Mexico border region receives, in addition
3-19     to reimbursement at the rate required under Subdivision (1), a
3-20     bonus in the amount of 10 percent of the reimbursement customarily
3-21     provided to a physician providing that service in another region of
3-22     the state.
3-23           (l)  For purposes of Subsection (k), the commission shall
3-24     exclude data from the Texas-Mexico border region in determining the
3-25     statewide average capitation rates under Medicaid managed care and
3-26     the child health plan program and the statewide average total
3-27     professional services expenditures per Medicaid recipient or per
 4-1     child enrolled in the child health plan program.
 4-2           (m)  With advice from the committee and other appropriate
 4-3     groups, the commission may vary the amount of any rate increases
 4-4     for professional services required by Subsection (k) according to
 4-5     the type of service provided.
 4-6           (n)  The commission shall develop mechanisms to pass any rate
 4-7     increase required by Subsection (k) directly to providers,
 4-8     including providers in Medicaid managed care service delivery areas
 4-9     with health maintenance organization, prepaid health plan, or
4-10     primary care case management models.
4-11           (o)  The commission shall contract with a public university
4-12     to:
4-13                 (1)  measure changes occurring from September 1, 2001,
4-14     to August 31, 2004, in the number of health care providers
4-15     participating in the Medicaid program or the child health plan
4-16     program in the Texas-Mexico border region and resulting effects on
4-17     consumer access to health care and consumer utilization;
4-18                 (2)  determine the effects, if any, of the changes in
4-19     rates and expenditures required by Subsection (k); and
4-20                 (3)  not later than December 1, 2004, submit a report
4-21     to the legislature.
4-22           (p)  This section expires September 1, 2011.
4-23           SECTION 2.  If before implementing any provision of this Act
4-24     a state agency determines that a waiver or authorization from a
4-25     federal agency is necessary for implementation of that provision,
4-26     the agency affected by the provision shall request the waiver or
4-27     authorization and may delay implementing that provision until the
 5-1     waiver or authorization is granted.
 5-2           SECTION 3.  (a)  The changes in rates and expenditures
 5-3     required by Section 531.0221(k), Government Code, as added by this
 5-4     Act, must be initiated not later than September 1, 2002.
 5-5           (b)  The advisory committee on funding disparities in health
 5-6     programs shall deliver the first report required by Section
 5-7     531.0221(c), Government Code, as added by this Act, not later than
 5-8     September 1, 2002.
 5-9           SECTION 4.  This Act takes effect September 1, 2001.