By Kitchen                                            H.B. No. 2807
         77R6050 CLG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a demonstration project to extend Medicaid coverage to
 1-3     certain low-income individuals.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter B, Chapter 32, Human Resources Code, is
 1-6     amended by adding Section 32.053 to read as follows:
 1-7           Sec. 32.053.  DEMONSTRATION PROJECT FOR PROVISION OF MEDICAL
 1-8     ASSISTANCE TO CERTAIN LOW-INCOME INDIVIDUALS. (a)  The Health and
 1-9     Human Services Commission shall establish a demonstration project
1-10     to provide medical assistance under this chapter to an adult
1-11     individual who:
1-12                 (1)  has a family income that is at or below 100
1-13     percent of the federal poverty level;
1-14                 (2)  is not otherwise eligible for medical assistance
1-15     at the time the individual's eligibility for participation in the
1-16     demonstration project is determined; and
1-17                 (3)  is not covered by a health benefits plan offering
1-18     adequate coverage, as determined by the commission.
1-19           (b)  In establishing the demonstration project, the Health
1-20     and Human Services Commission shall ensure that the demonstration
1-21     project is financed using funds made available by certain local
1-22     governmental entities to the commission for matching purposes to
1-23     maximize federal funds for the medical assistance program.
1-24           (c)  The Texas Department of Health shall administer the
 2-1     demonstration project at the direction of the Health and Human
 2-2     Services Commission.
 2-3           (d)  The Texas Department of Health shall select one or more
 2-4     counties, at least one of which has a population of more than
 2-5     725,000, in which to implement the demonstration project.
 2-6           (e)  Not later than December 1 of each even-numbered year,
 2-7     the Texas Department of Health shall evaluate the effectiveness,
 2-8     including the cost-effectiveness, of the demonstration project in
 2-9     providing health care services to project participants.  If the
2-10     results of the evaluation indicate that the demonstration project
2-11     is cost-effective, the department shall incorporate a request for
2-12     funding for the continuation or expansion of the demonstration
2-13     project in the department's budget request for the next state
2-14     fiscal biennium.
2-15           (f)  Not later than December 1 of each even-numbered year,
2-16     the Texas Department of Health shall submit a report to the
2-17     legislature regarding the operation and  cost-effectiveness of the
2-18     demonstration project established under this section.
2-19           SECTION 2. If the Health and Human Services Commission
2-20     determines that a waiver or authorization from a federal agency is
2-21     necessary for implementing any provision of this Act, the
2-22     commission shall request the waiver or authorization not later than
2-23     September 1, 2001, and may delay implementing that provision until
2-24     the waiver or authorization is granted.
2-25           SECTION 3. Not later than January 1, 2002, the Texas
2-26     Department of Health shall implement the demonstration project
2-27     required by Section 32.053, Human Resources Code, as added by this
 3-1     Act.
 3-2           SECTION 4.  This Act takes effect immediately if it receives
 3-3     a vote of two-thirds of all the members elected to each house, as
 3-4     provided by Section 39, Article III, Texas Constitution.  If this
 3-5     Act does not receive the vote necessary for immediate effect, this
 3-6     Act takes effect September 1, 2001.