By Chavez, Moreno of El Paso, Haggerty, Pickett,      H.B. No. 2471
         Najera, et al.
         77R6490 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.
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 for services provided to persons
1-22     younger than 19 years of age;
1-23                 (2)  fee for service reimbursement rates  under the
1-24     Medicaid program and the child health plan program for inpatient
 2-1     and outpatient hospital services for services provided to persons
 2-2     younger than 19 years of age; and
 2-3                 (3)  total professional services expenditures per
 2-4     Medicaid recipient younger than 19 years of age or per child
 2-5     enrolled in the child health plan program.
 2-6           (c)  Periodically the committee shall perform the research
 2-7     necessary to analyze and compare the rates and expenditures
 2-8     described by Subsection (b) and, not later than the date specified
 2-9     by the commissioner, produce a report based on the results of that
2-10     analysis and comparison.
2-11           (d)  The committee shall, as part of the report required by
2-12     Subsection (c), make recommendations to the commissioner for
2-13     addressing the problems created by disparities documented in the
2-14     report, including recommendations for allocation of funds.
2-15           (e)  The commissioner shall appoint nine members to the
2-16     advisory committee in a manner that ensures that the committee:
2-17                 (1)  represents the spectrum of geographic areas
2-18     included in the Texas-Mexico border region;
2-19                 (2)  includes persons who are knowledgeable regarding
2-20     the Medicaid program, including Medicaid managed care, and the
2-21     child health plan program; and
2-22                 (3)  represents the interests of physicians, hospitals,
2-23     patients, managed care organizations, state agencies involved in
2-24     the management and delivery of medical resources of any kind,
2-25     affected communities, and other areas of the state.
2-26           (f)  The committee shall elect officers from among the
2-27     members of the committee.
 3-1           (g)  Appointments to the committee shall be made without
 3-2     regard to the race, color, disability, sex, religion, age, or
 3-3     national origin of the appointees.
 3-4           (h)  A member of the committee may not receive compensation,
 3-5     but is entitled to reimbursement  of travel expenses incurred by
 3-6     the member while conducting the business of the committee as
 3-7     provided by the General Appropriations Act.
 3-8           (i)  The commission shall provide administrative support and
 3-9     resources to the committee as necessary for the committee to
3-10     perform the duties under this section.
3-11           (j)  The committee is not subject to Chapter 2110, Government
3-12     Code.
3-13           (k)  With advice from the committee, the commission shall
3-14     ensure that:
3-15                 (1)  the disparities in rates and expenditures
3-16     described by Subsection (b) are eliminated as soon as practicable
3-17     for services provided to a person younger than 19 years of age so
3-18     that the rates and expenditures in the Texas-Mexico border region
3-19     equal the statewide average rates and expenditures; and
3-20                 (2)  a physician providing a service  to a Medicaid
3-21     recipient younger than 19 years of age in the Texas-Mexico border
3-22     region receives, in addition to reimbursement at the rate required
3-23     under Subdivision (1), a bonus in the amount of 10 percent of the
3-24     reimbursement customarily provided to a physician providing that
3-25     service in another region of the state.
3-26           (l)  For purposes of Subsection (k), the commission shall
3-27     exclude data from the Texas-Mexico border region in determining the
 4-1     statewide average capitation rates under Medicaid managed care and
 4-2     the child health plan program and the statewide average total
 4-3     professional services expenditures per Medicaid recipient younger
 4-4     than 19 years of age or per child enrolled in the child health plan
 4-5     program.
 4-6           (m)  With advice from the committee and other appropriate
 4-7     groups, the commission may vary the amount of any rate increases
 4-8     for professional services required by Subsection (k) according to
 4-9     the type of service provided.
4-10           (n)  The commission shall develop mechanisms to pass any rate
4-11     increase required by Subsection (k) directly to providers,
4-12     including providers in Medicaid managed care service delivery areas
4-13     with health maintenance organization, prepaid health plan, or
4-14     primary care case management models.
4-15           (o)  The commission shall contract with a public university
4-16     to:
4-17                 (1)  measure changes occurring from September 1, 2001,
4-18     to August 31, 2004, in the number of health care providers
4-19     participating in the Medicaid program or the child health plan
4-20     program in the Texas-Mexico border region and resulting effects on
4-21     consumer access to health care and consumer utilization;
4-22                 (2)  determine the effects, if any, of the changes in
4-23     rates and expenditures required by Subsection (k);
4-24                 (3)  make a recommendation regarding whether Medicaid
4-25     rate increases should be expanded to include Medicaid services
4-26     provided to adults in the Texas-Mexico border region; and
4-27                 (4)  not later than December 1, 2004, submit a report
 5-1     to the legislature.
 5-2           (p)  This section expires September 1, 2011.
 5-3           SECTION 2.  If before implementing any provision of this Act
 5-4     a state agency determines that a waiver or authorization from a
 5-5     federal agency is necessary for implementation of that provision,
 5-6     the agency affected by the provision shall request the waiver or
 5-7     authorization and may delay implementing that provision until the
 5-8     waiver or authorization is granted.
 5-9           SECTION 3.  (a)  The changes in rates and expenditures
5-10     required by Section 531.0221(k), Government Code, as added by this
5-11     Act, must be initiated not later than September 1, 2002.
5-12           (b)  The advisory committee on funding disparities in health
5-13     programs shall deliver the first report required by Section
5-14     531.0221(c), Government Code, as added by this Act, not later than
5-15     September 1, 2002.
5-16           SECTION 4.  This Act takes effect September 1, 2001.