By Coleman                                            H.B. No. 2602
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to indigent health care.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 61.006, Health and Safety Code, is amended
 1-5     to read as follows:
 1-6           Sec. 61.006.  STANDARDS AND PROCEDURES. (a)  The department
 1-7     shall establish minimum eligibility standards and application,
 1-8     documentation, and verification procedures for counties to use in
 1-9     determining eligibility under this chapter.
1-10           (b)  The minimum eligibility standards must incorporate a net
1-11     income eligibility level equal to 21 [25] percent of the federal
1-12     poverty level based on the federal Office of Management and Budget
1-13     poverty index.
1-14           [(b-1)  Notwithstanding Subsection (b), effective January 1,
1-15     2000, the minimum eligibility standards must incorporate a net
1-16     income eligibility level equal to 17 percent of the federal poverty
1-17     level based on the federal Office of Management and Budget poverty
1-18     index.  This subsection expires December 31, 2000.]
1-19           [(b-2)  Notwithstanding Subsection (b), effective January 1,
1-20     2001, the minimum eligibility standards must incorporate a net
1-21     income eligibility level equal to 21 percent of the federal poverty
1-22     level based on the federal Office of Management and Budget poverty
 2-1     index.  This subsection expires December 31, 2001.]
 2-2           (c)  The department shall also define the services and
 2-3     establish the payment standards for the categories of services
 2-4     listed in Sections 61.028(a) and 61.0285 in accordance with
 2-5     department [Texas Department of Human Services] rules relating to
 2-6     the Temporary Assistance for Needy Families-Medicaid program.
 2-7           (d)  The department shall establish application,
 2-8     documentation, and verification procedures that are consistent with
 2-9     the analogous procedures used to determine eligibility in the
2-10     Temporary Assistance for Needy Families-Medicaid program.  The
2-11     department may not adopt a standard or procedure that is more
2-12     restrictive than the Temporary Assistance for Needy
2-13     Families-Medicaid program or procedures.
2-14           (e)  The department shall ensure that each person who meets
2-15     the basic income and resources requirements for Temporary
2-16     Assistance for Needy Families program payments but who is
2-17     categorically ineligible for Temporary Assistance for Needy
2-18     Families will be eligible for assistance under Subchapter B.
2-19     Except as provided by Section 61.023(b), the department by rule
2-20     shall also provide that a person who receives or is eligible to
2-21     receive Temporary Assistance for Needy Families, Supplemental
2-22     Security Income, or Medicaid benefits is not eligible for
2-23     assistance under Subchapter B even if the person has exhausted a
2-24     part or all of that person's benefits.
2-25           (f)  The department shall notify each county and public
2-26     hospital of any change to department rules that affect the
 3-1     provision of services under this chapter.
 3-2           (g)  Notwithstanding Subsection (a), (b), or (c) or any other
 3-3     provision of law, the department shall permit payment to a licensed
 3-4     dentist for services provided under Sections 61.028(a)(4) and (6)
 3-5     if the dentist can provide those services within the scope of the
 3-6     dentist's license.
 3-7           (h)  Notwithstanding Subsection (a), (b), or (c), the
 3-8     department shall permit payment to a licensed podiatrist for
 3-9     services provided under Sections 61.028(a)(4) and (6), if the
3-10     podiatrist can provide the services within the scope of the
3-11     podiatrist's license.
3-12           SECTION 2.  Section 61.025(d), Health and Safety Code, is
3-13     amended to read as follows:
3-14           (d)  Expenditures made by the county under Subsection (b) may
3-15     be credited toward eligibility for state assistance under this
3-16     subchapter if the person who received the health care services
3-17     meets the eligibility standards established under Section 61.023
3-18     [61.052] and would have been eligible for assistance under the
3-19     county program if the person had not resided in a public hospital's
3-20     service area.
3-21           SECTION 3.  Section 61.032(e), Health and Safety Code, is
3-22     amended to read as follows:
3-23           (e)  If the county and the provider disagree on the patient's
3-24     residence or eligibility, the county or the provider may submit the
3-25     matter to the department as provided by Section 61.004.
3-26           SECTION 4.  Section 61.037(e), Health and Safety Code, is
 4-1     amended to read as follows:
 4-2           (e)  A county that provides health care services described by
 4-3     Subsection (a) to its eligible residents through a hospital
 4-4     established by a board of managers jointly appointed by a county
 4-5     and a municipality under Section 265.011 is eligible for state
 4-6     assistance if:
 4-7                 (1)  the county spends in a state fiscal year at least
 4-8     eight percent of the county general revenue levy for the year to
 4-9     provide the health care services to its eligible county residents
4-10     who qualify for assistance under Section 61.023 [61.052]; and
4-11                 (2)  the county complies with the requirements of this
4-12     subchapter.
4-13           SECTION 5.  Section 61.038, Health and Safety Code, is
4-14     amended to read as follows:
4-15           Sec. 61.038.  Distribution of Assistance Funds. (a)  If the
4-16     department determines that a county is eligible for assistance, the
4-17     department shall distribute funds appropriated to the department
4-18     from the indigent health care assistance fund or any other
4-19     available fund to the county to assist the county in providing
4-20     health care services under Sections 61.028 and 61.0285 to its
4-21     eligible county residents who qualify for assistance as described
4-22     by Section 61.023 [61.037].
4-23           (b)  State funds provided under this section to a county must
4-24     be equal to at least 90 percent of the actual payment for the
4-25     health care services for the county's eligible residents during the
4-26     remainder of the state fiscal year after the eight percent
 5-1     expenditure level is reached.
 5-2           SECTION 6.  Section 61.0395, Health and Safety Code, is
 5-3     amended to read as follows:
 5-4           Sec. 61.0395.  Limited to Appropriated Funds. [(a)]  The
 5-5     total amount of state assistance provided to counties under this
 5-6     chapter for a fiscal year may not exceed the amount appropriated
 5-7     for that purpose for that fiscal year.
 5-8           [(b)  The department shall adopt rules governing the
 5-9     distribution of state assistance under this chapter that establish
5-10     a maximum annual allocation for each county eligible for assistance
5-11     under this chapter in compliance with Subsection (a).]
5-12           [(c)  The rules adopted under this section:]
5-13                 [(1)  may consider the relative populations of the
5-14     service areas of eligible counties and other appropriate factors;
5-15     and]
5-16                 [(2)  notwithstanding Subsection (b), may provide for,
5-17     at the end of each state fiscal year, the reallocation of all money
5-18     that is allocated to a county under Subsection (b) but that the
5-19     county is not eligible to receive and the distribution of that
5-20     money to other eligible counties.]
5-21           SECTION 7.  Section 61.052(g), Health and Safety Code, is
5-22     amended to read as follows:
5-23           (g)  A county that provides health care services to its
5-24     eligible residents through a hospital established by a board of
5-25     managers jointly appointed by a county and a municipality under
5-26     Section 265.011 and that establishes an income and resources
 6-1     standard in accordance with Subsection (a)(2) may only credit the
 6-2     services provided to [all] persons who are eligible under the
 6-3     [that] standard described by Section 61.023 toward eligibility for
 6-4     state assistance as described by Section 61.037(e).
 6-5           SECTION 8.  Section 61.059(e), Health and Safety Code, is
 6-6     amended to read as follows:
 6-7           (e)  If the public hospital and the provider disagree on the
 6-8     patient's residence or eligibility, the county or the provider may
 6-9     submit the matter to the department as provided by Section 61.004.
6-10           SECTION 9.  This Act takes effect immediately if it receives
6-11     a vote of two-thirds of all the members elected to each house, as
6-12     provided by Section 39, Article III, Texas Constitution.  If this
6-13     Act does not receive the vote necessary for immediate effect, this
6-14     Act takes effect September 1, 2001.