By Eiland, Naishtat, Madden, Coleman H.B. No. 2906 77R1615 JRD-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the imposition of an additional fee on nursing and 1-3 convalescent homes for the purpose of allowing the state to 1-4 increase reimbursement rates to the homes under the state Medicaid 1-5 program and to qualify for more federal Medicaid funds. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 SECTION 1. Subchapter B, Chapter 242, Health and Safety Code, 1-8 is amended by adding Section 242.0341 to read as follows: 1-9 Sec. 242.0341. QUALITY ASSURANCE FEE. (a) A quality 1-10 assurance fee is imposed on each institution for which a license 1-11 fee must be paid under Section 242.034. The fee is: 1-12 (1) equal to six percent of the institution's gross 1-13 receipts from its operations in this state; 1-14 (2) payable monthly; 1-15 (3) in addition to other fees imposed under this 1-16 chapter; and 1-17 (4) an allowable cost for reimbursement under the 1-18 state Medicaid program. 1-19 (b) The Health and Human Services Commission or the 1-20 department at the direction of the commission shall collect the 1-21 fee. Each institution shall send to the commission or department, 1-22 as appropriate, the information that the commission or department 1-23 requires to collect the fee from the institution, including 1-24 information necessary to verify the amount of the fee for the 2-1 institution. The commission or the department at the direction of 2-2 the commission shall prescribe the time by which an institution 2-3 must pay the monthly fee. 2-4 (c) Amounts received under this section may be appropriated 2-5 only for the purposes of paying the cost of administering this 2-6 section and increasing the rate of reimbursement paid to 2-7 institutions under the state Medicaid program. The commission or 2-8 the department at the direction of the commission shall devise the 2-9 formula by which amounts received under this section increase the 2-10 rate of reimbursement paid to institutions under the state Medicaid 2-11 program. 2-12 (d) The department, taking into account the direct and 2-13 indirect effects that a higher rate of reimbursement paid to 2-14 institutions under the state Medicaid program should have on the 2-15 ability of the nursing and convalescent home industry in this state 2-16 generally to increase the quality of care, shall adopt rules 2-17 consistent with the department's powers under this chapter designed 2-18 to require a commensurately higher quality of care for residents in 2-19 institutions in this state. 2-20 (e) The quality assurance fee may not be imposed and 2-21 collected, and the department is not required to adopt rules under 2-22 Subsection (d) or enforce rules already adopted under that 2-23 subsection, if the commission determines that the imposition of the 2-24 fee and the expenditure as prescribed by this section of amounts 2-25 collected will not entitle the state to receive additional federal 2-26 funds under the Medicaid program. 2-27 SECTION 2. If before implementing any provision of this Act a 3-1 state agency determines that a waiver or authorization from a 3-2 federal agency is necessary for implementation of that provision, 3-3 the agency affected by the provision shall request the waiver or 3-4 authorization and may delay implementing that provision until the 3-5 waiver or authorization is granted. 3-6 SECTION 3. This Act takes effect September 1, 2001.