By Coleman                                            H.B. No. 2541
         77R8155 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the state Medicaid program.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 32.024, Human Resources Code, is amended
 1-5     by adding Subsection (x) to read as follows:
 1-6           (x)  In its rules and standards governing the vendor drug
 1-7     program, the department may not limit benefits for the number of
 1-8     medications prescribed to a recipient of prescription drug benefits
 1-9     under the medical assistance program.
1-10           SECTION 2. Subchapter B, Chapter 32, Human Resources Code, is
1-11     amended by adding Section 32.02415 to read as follows:
1-12           Sec. 32.02415.  EXCLUSION OF ASSETS AND RESOURCES. To the
1-13     extent allowed by federal law, the department may not consider the
1-14     assets and resources of a child under 19 years of age or the assets
1-15     and resources of the child's parents or other caretaker for
1-16     purposes of determining the child's eligibility for medical
1-17     assistance.
1-18           SECTION 3. Section 32.025, Human Resources Code, is amended
1-19     by adding Subsections (d) and (e) to read as follows:
1-20           (d)  To the extent allowed by federal law and except as
1-21     otherwise provided by this section, the department shall adopt
1-22     application forms and procedures for a request for medical
1-23     assistance provided to a child under 19 years of age that are
1-24     similar to the application forms and procedures adopted under
 2-1     Section 62.103, Health and Safety Code.
 2-2           (e)  The department shall permit an application requesting
 2-3     medical assistance for a child under 19 years of age to be
 2-4     conducted by mail instead of through a personal appearance at a
 2-5     department office.
 2-6           SECTION 4. Section 32.026, Human Resources Code, is amended
 2-7     by adding Subsections (d) and (e) to read as follows:
 2-8           (d)  In adopting rules under this section, the department
 2-9     shall ensure, to the extent allowed by federal law, that
2-10     documentation and verification procedures used in determining and
2-11     certifying the eligibility and need for medical assistance of a
2-12     child under 19 years of age are similar to the documentation and
2-13     verification procedures used to determine a child's eligibility for
2-14     coverage under Chapter 62, Health and Safety Code.
2-15           (e)  The department shall permit a recertification review of
2-16     the eligibility and need for medical assistance of a child under 19
2-17     years of age to be conducted by telephone or mail instead of
2-18     through a personal appearance at a department office.
2-19           SECTION 5. Subchapter B, Chapter 32, Human Resources Code, is
2-20     amended by adding Section 32.0261 to read as follows:
2-21           Sec. 32.0261.  CONTINUOUS ELIGIBILITY. The department shall
2-22     adopt rules in accordance with 42 U.S.C. Section 1396a(e)(12), as
2-23     amended, to provide for a period of continuous eligibility for a
2-24     child under 19 years of age who is determined to be eligible for
2-25     medical assistance under this chapter.  The rules shall provide
2-26     that the child remains eligible for medical assistance, without
2-27     additional review by the department and regardless of changes in
 3-1     the child's resources or income, until the earlier of:
 3-2                 (1)  the first anniversary of the date on which the
 3-3     child's eligibility was determined; or
 3-4                 (2)  the child's 19th birthday.
 3-5           SECTION 6. Subchapter B, Chapter 32, Human Resources Code, is
 3-6     amended by adding Sections 32.053-32.055 to read as follows:
 3-7           Sec. 32.053.  DEMONSTRATION PROJECT FOR CERTAIN MEDICATIONS
 3-8     AND RELATED SERVICES. (a)  The department shall establish a
 3-9     five-year demonstration project to provide to a person through the
3-10     medical assistance program psychotropic medications and related
3-11     laboratory and physician services necessary to conform to a
3-12     prescribed medical regime for those medications.
3-13           (b)  A person is eligible to participate in the demonstration
3-14     project if the person:
3-15                 (1)  has been diagnosed with schizophrenia or bipolar
3-16     disorder;
3-17                 (2)  is at least 19 years of age, but not more than 64
3-18     years of age;
3-19                 (3)  has a net family income that is at or below 200
3-20     percent of the federal poverty level;
3-21                 (4)  is not covered by a health benefits plan offering
3-22     adequate coverage, as determined by the department; and
3-23                 (5)  is not otherwise eligible for medical assistance
3-24     at the time the person's eligibility for participation in the
3-25     demonstration project is determined.
3-26           (c)  A participant in the demonstration project is not
3-27     subject to the monthly three-prescription limit under the medical
 4-1     assistance program.
 4-2           (d)  Participation in the demonstration project does not
 4-3     entitle a participant to other services provided under the medical
 4-4     assistance program.
 4-5           (e)  Not later than December 1 of each even-numbered year,
 4-6     the department shall submit a biennial report to the legislature
 4-7     regarding the department's progress in establishing and operating
 4-8     the demonstration project.
 4-9           (f)  Not later than December 1, 2006, the department shall
4-10     evaluate the cost-effectiveness of the demonstration project,
4-11     including whether the preventive drug treatments and related
4-12     services provided under the project offset future long-term care
4-13     costs for project participants.  If the results of the evaluation
4-14     indicate that the project is cost-effective, the department shall
4-15     incorporate a request for funding for the continuation of the
4-16     program in the department's budget request for the next state
4-17     fiscal biennium.
4-18           (g)  This section expires September 1, 2007.
4-19           Sec. 32.054.  DEMONSTRATION PROJECT FOR PERSONS WITH HIV
4-20     INFECTION OR AIDS. (a)  In this section, "AIDS" and "HIV" have the
4-21     meanings assigned by Section 81.101, Health and Safety Code.
4-22           (b)  The department shall establish a demonstration project
4-23     to provide a person with HIV infection or AIDS with the following
4-24     services and medications through the medical assistance program:
4-25                 (1)  services provided by a physician, physician
4-26     assistant, advanced practice nurse, or other health care provider
4-27     specified by the department;
 5-1                 (2)  anti-retroviral drug treatments;
 5-2                 (3)  other medications determined to be necessary for
 5-3     treatment of a condition related to HIV infection or AIDS;
 5-4                 (4)  vaccinations for hepatitis B and pneumonia;
 5-5                 (5)  pap smears, colposcopy, and other diagnostic
 5-6     procedures necessary to monitor gynecologic complications resulting
 5-7     from HIV infection or AIDS in women;
 5-8                 (6)  laboratory and other diagnostic services,
 5-9     including periodic testing for CD4+ T-cell counts, viral load
5-10     determination, and phenotype or genotype testing if clinically
5-11     indicated; and
5-12                 (7)  other laboratory and radiological testing
5-13     necessary to monitor potential toxicity of therapy.
5-14           (c)  The department shall establish the demonstration project
5-15     in at least two counties with a high prevalence of HIV infection
5-16     and AIDS.  The department may request financial participation from
5-17     the counties in which the department establishes the demonstration
5-18     project.
5-19           (d)  A person is eligible to participate in the demonstration
5-20     project if the person:
5-21                 (1)  has been diagnosed with HIV infection or AIDS by a
5-22     physician;
5-23                 (2)  is under 65 years of age;
5-24                 (3)  has a net family income that is at or below 200
5-25     percent of the federal poverty level;
5-26                 (4)  is a resident of a county included in the project
5-27     or, subject to guidelines established by the department, is
 6-1     receiving medical care for HIV infection or AIDS through a facility
 6-2     located in a county included in the project;
 6-3                 (5)  is not covered by a health benefits plan offering
 6-4     adequate coverage, as determined by the department; and
 6-5                 (6)  is not otherwise eligible for medical assistance
 6-6     at the time the person's eligibility for participation in the
 6-7     demonstration project is determined.
 6-8           (e)  Participation in the demonstration project does not
 6-9     entitle a participant to other services provided under the medical
6-10     assistance program.
6-11           (f)  A participant in the demonstration project is not
6-12     subject to the monthly three-prescription limit under the medical
6-13     assistance program.
6-14           (g)  Not later than December 1 of each even-numbered year,
6-15     the department shall submit a biennial report to the legislature
6-16     regarding the department's progress in establishing and operating
6-17     the demonstration project.
6-18           (h)  Not later than December 1, 2006, the department shall
6-19     evaluate the cost-effectiveness of the demonstration project,
6-20     including whether the services and medications provided offset
6-21     future higher costs for project participants.  If the results of
6-22     the evaluation indicate that the project is cost-effective, the
6-23     department shall incorporate a request for funding for the
6-24     expansion of the project into additional counties or throughout the
6-25     state, as appropriate, in the department's budget request for the
6-26     next state fiscal biennium.
6-27           (i)  This section expires September 1, 2007.
 7-1           Sec. 32.055.  DEMONSTRATION PROJECT FOR WOMEN'S HEALTH CARE
 7-2     SERVICES. (a)  The department shall establish a five-year
 7-3     demonstration project through the medical assistance program to
 7-4     expand access to preventive health and family planning services for
 7-5     women. A woman eligible under Subsection (b) to participate in the
 7-6     demonstration project may receive preventive health and family
 7-7     planning services including:
 7-8                 (1)  medical history;
 7-9                 (2)  physical examinations;
7-10                 (3)  counseling and education on contraceptive methods;
7-11                 (4)  provision of contraceptives;
7-12                 (5)  health screenings, including screening for:
7-13                       (A)  diabetes;
7-14                       (B)  cervical cancer;
7-15                       (C)  breast cancer;
7-16                       (D)  sexually transmitted diseases;
7-17                       (E)  hypertension;
7-18                       (F)  cholesterol; and
7-19                       (G)  tuberculosis;
7-20                 (6)  risk assessment; and
7-21                 (7)  referral of medical problems to appropriate
7-22     providers.
7-23           (b)  A woman is eligible to participate in the demonstration
7-24     project if the woman:
7-25                 (1)  is of childbearing age, as determined by the
7-26     department;
7-27                 (2)  has a net family income that is at or below 185
 8-1     percent of the federal poverty level; and
 8-2                 (3)  is not otherwise eligible for the medical
 8-3     assistance program.
 8-4           (c)  The department shall compile a list of potential funding
 8-5     sources a client can use to help pay for treatment for health
 8-6     problems:
 8-7                 (1)  identified using services provided to the client
 8-8     under the demonstration project; and
 8-9                 (2)  for which the client is not eligible to receive
8-10     treatment under the medical assistance program.
8-11           (d)  Not later than December 1 of each even-numbered year,
8-12     the department shall submit a report to the legislature regarding
8-13     the department's progress in establishing and operating the
8-14     demonstration project.
8-15           (e)  This section expires September 1, 2007.
8-16           SECTION 7.  Subchapter B, Chapter 32, Human Resources Code,
8-17     is amended by adding Section 32.056 to read as follows:
8-18           Sec. 32.056.  DEMONSTRATION PROJECT FOR MEDICAL ASSISTANCE
8-19     BUY-IN PROGRAM FOR CERTAIN RECIPIENTS WITH DISABILITIES. (a)  The
8-20     department shall establish a demonstration project to implement in
8-21     five sites a medical assistance buy-in program in accordance with
8-22     the Ticket to Work and Work Incentives Improvement Act of 1999
8-23     (Pub. L. No. 106-170), as amended, to provide medical assistance
8-24     to:
8-25                 (1)  a person who:
8-26                       (A)  is at least 16 years of age, but is not more
8-27     than 64 years of age; and
 9-1                       (B)  has earned income that exceeds the limit
 9-2     established by federal law for eligibility for Supplemental
 9-3     Security Income (SSI) (42 U.S.C. Section 1381 et seq.), as amended,
 9-4     but is otherwise eligible for those benefits; and
 9-5                 (2)  an employed individual with a medically improved
 9-6     disability, as defined by 42 U.S.C. Section 1396d(v)(1), as
 9-7     amended.
 9-8           (b)  In establishing the demonstration project, the
 9-9     department may:
9-10                 (1)  establish income, assets, and resource limitations
9-11     for eligibility for participation in the demonstration project; and
9-12                 (2)  require a participant in the demonstration project
9-13     to pay premiums and other cost-sharing charges in accordance with
9-14     42 U.S.C. Section 1396o(g)(1), as amended.
9-15           (c)  The department shall require a participant in the
9-16     project to pay premiums to the extent required by 42 U.S.C. Section
9-17     1396o(g)(2), as amended.
9-18           (d)  Not later than December 1, 2002, the department shall
9-19     evaluate the effectiveness of the demonstration project in
9-20     providing health care services to employed persons with
9-21     disabilities.  If the results of the evaluation indicate that the
9-22     project is effective, the department shall incorporate a request
9-23     for funding for the continuation or expansion of the program in the
9-24     department's budget request for the next state fiscal biennium.
9-25           (e)  This section expires September 1, 2003.
9-26           SECTION 8.  Section 531.0214(d), Government Code, is amended
9-27     to read as follows:
 10-1          (d)  The commission shall develop the database system in a
 10-2    manner that will enable a complete analysis of the use of
 10-3    prescription medications[, including information relating to:]
 10-4                [(1)  Medicaid clients for whom more than three
 10-5    medications have been prescribed; and]
 10-6                [(2)  the medical effect denial of Medicaid coverage
 10-7    for more than three medications has had on Medicaid clients].
 10-8          SECTION 9.  Subchapter A, Chapter 533, Government Code, is
 10-9    amended by adding Sections 533.0055 and 533.016 to read as follows:
10-10          Sec. 533.0055.  EVALUATION OF REPORTING REQUIREMENTS AND
10-11    INSPECTION PROCEDURES. (a)  The commission shall:
10-12                (1)  evaluate on-site inspection procedures of managed
10-13    care organizations contracting with the commission under this
10-14    chapter and evaluate methods to streamline those procedures to
10-15    assist the commission in determining necessary and effective
10-16    quality control measures and required data;
10-17                (2)  evaluate methods to streamline reporting
10-18    requirements for managed care organizations contracting with the
10-19    commission under this chapter, including:
10-20                      (A)  combining information required to be
10-21    reported into a quarterly management report;
10-22                      (B)  eliminating unnecessary or duplicative
10-23    reporting requirements; and
10-24                      (C)  requiring managed care organizations to use
10-25    uniform forms developed by the commission for referrals for
10-26    services and credentialing of health care providers providing
10-27    health care services to recipients; and
 11-1                (3)  require managed care organizations contracting
 11-2    with the commission under this chapter to evaluate reporting
 11-3    requirements for health care providers to identify methods of
 11-4    reducing the administrative burden placed on the providers,
 11-5    including:
 11-6                      (A)  reducing the complexity of forms health care
 11-7    providers are required to complete; and
 11-8                      (B)  eliminating unnecessary or duplicative
 11-9    reporting requirements.
11-10          (b)  The commission shall submit a report to the legislature
11-11    regarding the evaluation of and methods for streamlining on-site
11-12    inspection procedures and reporting requirements for managed care
11-13    organizations and health care providers providing health care
11-14    services to recipients.  The report must include recommendations on
11-15    which methods should be implemented and a schedule for
11-16    implementation.
11-17          (c)  This section expires September 1, 2002.
11-18          Sec. 533.016.  INTERAGENCY SHARING OF INFORMATION. The
11-19    commission shall require a health and human services agency
11-20    implementing the Medicaid managed care program to provide to each
11-21    other health and human services agency implementing the Medicaid
11-22    managed care program information reported to that agency by a
11-23    managed care organization or health care provider providing
11-24    services to recipients.
11-25          SECTION 10. The Health and Human Services Commission or the
11-26    appropriate state agency operating part of the medical assistance
11-27    program under Chapter 32, Human Resources Code, shall adopt rules
 12-1    required by Section 32.0261, Human Resources Code, as added by this
 12-2    Act, not later than October 1, 2001.  The rules must provide for a
 12-3    period of continuous eligibility in accordance with that section
 12-4    for a child whose initial or continued eligibility is determined on
 12-5    or after the effective date of the rules.
 12-6          SECTION 11.  The state agencies responsible for implementing
 12-7    the demonstration projects required by Sections 32.053-32.055,
 12-8    Human Resources Code, as added by this Act, shall request and
 12-9    actively pursue any necessary waivers or authorizations from the
12-10    Health Care Financing Administration or other appropriate entities
12-11    to enable the agencies to implement the demonstration projects not
12-12    later than September 1, 2002.  The agencies may delay implementing
12-13    the demonstration projects until the necessary waivers or
12-14    authorizations are granted.
12-15          SECTION 12.  The Health and Human Services Commission shall
12-16    submit the report required by Section 533.0055(b), Government Code,
12-17    as added by this Act, not later than November 1, 2002.
12-18          SECTION 13.  (a)  Subject to Subsection (b) of this section,
12-19    if before implementing any provision of this Act a state agency
12-20    determines that a waiver or authorization from a federal agency is
12-21    necessary for implementation of that provision, the agency affected
12-22    by the provision shall request the waiver or authorization and may
12-23    delay implementing that provision until the waiver or authorization
12-24    is granted.
12-25          (b)  Implementation of Sections 32.053-32.055, Human
12-26    Resources Code, as added by this Act, is governed by Section 11 of
12-27    this Act.
 13-1          SECTION 14. (a)  Except as provided by Subsection (b) of this
 13-2    section, this Act takes effect September 1, 2001, and applies to a
 13-3    person receiving medical assistance on or after that date
 13-4    regardless of the date on which the person began receiving that
 13-5    medical assistance.
 13-6          (b)  Sections 6, 9, and 11 of this Act take effect
 13-7    immediately if this Act receives a vote of two-thirds of all the
 13-8    members elected to each house, as provided by Section 39, Article
 13-9    III, Texas Constitution.  If this Act does not receive the vote
13-10    necessary for immediate effect, Sections 6, 9, and 11 of this Act
13-11    take effect September 1, 2001.