1-1                                   AN ACT
 1-2     relating to eligibility for and enrollment in certain medical
 1-3     assistance programs, including simplifying the certification
 1-4     process for medical assistance provided to children.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subsection (b), Section 62.103, Health and Safety
 1-7     Code, is amended to read as follows:
 1-8           (b)  The form and procedures must be coordinated with forms
 1-9     and procedures under the Medicaid program [and those used by the
1-10     Texas Healthy Kids Corporation] to ensure that[, to the extent
1-11     possible,] there is a single consolidated application to seek
1-12     assistance under this chapter or the Medicaid program [or from the
1-13     corporation].
1-14           SECTION 2.  Section 32.025, Human Resources Code, is amended
1-15     by adding Subsections (d), (e), and (f) to read as follows:
1-16           (d)  The department shall adopt an application form and
1-17     procedures for a request for medical assistance provided to a child
1-18     under 19 years of age.  To the extent allowed by federal law and
1-19     except as otherwise provided by this section, the application form
1-20     and procedures must be the same as the form and procedures adopted
1-21     under Section 62.103, Health and Safety Code.  The department shall
1-22     coordinate the form and procedures adopted under this subsection
1-23     with the form and procedures adopted under Section 62.103, Health
1-24     and Safety Code, to ensure that there is a single consolidated
1-25     application for a child under 19 years of age to seek medical
 2-1     assistance or to request coverage under the state child health plan
 2-2     under Chapter 62, Health and Safety Code.
 2-3           (e)  The department shall permit an application requesting
 2-4     medical assistance for a child under 19 years of age to be
 2-5     conducted by mail instead of through a personal appearance at a
 2-6     department office.
 2-7           (f)  The commissioner by rule may develop procedures by
 2-8     which:
 2-9                 (1)  any office of a health and human services agency
2-10     may accept an application requesting medical assistance for a child
2-11     under 19 years of age; and
2-12                 (2)  the department may contract with hospital
2-13     districts, hospitals, including state-owned teaching hospitals,
2-14     federally qualified health centers, and county health departments
2-15     to accept applications requesting medical assistance for a child
2-16     under 19 years of age.
2-17           SECTION 3.  Section 32.026, Human Resources Code, is amended
2-18     by adding Subsections (d), (e), and (f) to read as follows:
2-19           (d)  In adopting rules under this section, the department
2-20     shall ensure, to the extent allowed by federal law, that
2-21     documentation and verification procedures used in determining and
2-22     certifying the eligibility and need for medical assistance of a
2-23     child under 19 years of age, including the documentation and
2-24     verification procedures used to evaluate the assets and resources
2-25     of the child, the child's parents, or the child's other caretaker
2-26     for that purpose, are the same as the documentation and
 3-1     verification procedures used to determine and certify a child's
 3-2     eligibility for coverage under Chapter 62, Health and Safety Code,
 3-3     except that the documentation and verification procedures adopted
 3-4     in accordance with this subsection may not be more stringent than
 3-5     the documentation and verification procedures existing on January
 3-6     1, 2001, for determination and certification of a child's
 3-7     eligibility for coverage under Chapter 62, Health and Safety Code.
 3-8           (e)  The department shall permit a recertification review of
 3-9     the eligibility and need for medical assistance of a child under 19
3-10     years of age to be conducted by telephone or mail instead of
3-11     through a personal appearance at a department office.
3-12           (f)  In adopting rules under this section, the department
3-13     shall ensure, to the extent allowed by federal law, that forms and
3-14     procedures used in conducting a recertification review of the
3-15     eligibility and need for medical assistance of a child under 19
3-16     years of age, including documentation and verification procedures,
3-17     are the same as the forms and procedures used to determine and
3-18     certify a child's renewal of coverage under Chapter 62, Health and
3-19     Safety Code.
3-20           SECTION 4.  Subchapter B, Chapter 32, Human Resources Code,
3-21     is amended by adding Sections 32.0261, 32.0262, and 32.0263 to read
3-22     as follows:
3-23           Sec. 32.0261.  CONTINUOUS ELIGIBILITY.  The department shall
3-24     adopt rules in accordance with 42 U.S.C. Section 1396a(e)(12), as
3-25     amended, to provide for a period of continuous eligibility for a
3-26     child under 19 years of age who is determined to be eligible for
 4-1     medical assistance under this chapter.  The rules shall provide
 4-2     that the child remains eligible for medical assistance, without
 4-3     additional review by the department and regardless of changes in
 4-4     the child's resources or income, until the earlier of:
 4-5                 (1)  the first anniversary of the date on which the
 4-6     child's eligibility was determined; or
 4-7                 (2)  the child's 19th birthday.
 4-8           Sec. 32.0262.  ELIGIBILITY TRANSITION.  (a)  The department
 4-9     shall develop procedures to ensure that all necessary information
4-10     regarding a child who will be denied continued medical assistance
4-11     under this chapter because of an increase in income, assets, or
4-12     resources but who is eligible for enrollment in the child health
4-13     plan under Chapter 62, Health and Safety Code, is promptly
4-14     transmitted to the child health plan in accordance with the
4-15     standards established under Section 62.104(d), Health and Safety
4-16     Code.
4-17           (b)  The department shall develop procedures to ensure that
4-18     the parent or caretaker of a child who will be denied continued
4-19     medical assistance under this chapter because of a failure to keep
4-20     an appointment, including an appointment for recertification of
4-21     eligibility, a failure to provide information, or for another
4-22     procedural reason, is promptly contacted and informed of:
4-23                 (1)  the need to recertify eligibility for continued
4-24     medical assistance under this chapter; and
4-25                 (2)  the availability of medical coverage under the
4-26     child health plan under Chapter 62, Health and Safety Code.
 5-1           (c)  The department shall develop materials under this
 5-2     section in consultation with the Health and Human Services
 5-3     Commission and the appropriate agencies administering all or part
 5-4     of the child health plan under Chapter 62, Health and Safety Code.
 5-5           (d)  The department by rule shall adopt procedures to assist
 5-6     a family whose child loses eligibility for medical assistance under
 5-7     this chapter in making a transition to the child health plan under
 5-8     Chapter 62, Health and Safety Code, with no interruption in
 5-9     coverage.
5-10           Sec. 32.0263.  HEALTH CARE ORIENTATION.  (a)  The department
5-11     shall require that the parent or guardian of a child under 19 years
5-12     of age who originally establishes eligibility for medical
5-13     assistance must:
5-14                 (1)  attend an in-person counseling session with a
5-15     department representative not later than the 31st day after the
5-16     date the child originally establishes eligibility; or
5-17                 (2)  accompany the child to an appointment with a
5-18     health care provider for a comprehensive health care orientation
5-19     not later than the 61st day after the date the child originally
5-20     establishes eligibility.
5-21           (b)  The commissioner by rule shall develop procedures to
5-22     verify that:
5-23                 (1)  the parent or guardian of the child who originally
5-24     establishes eligibility complies with the requirement of Subsection
5-25     (a)(2), if applicable; and
5-26                 (2)  the child is provided a comprehensive health care
 6-1     orientation at the appointment with the health care provider.
 6-2           SECTION 5.  Subchapter B, Chapter 32, Human Resources Code,
 6-3     is amended by adding Section 32.053 to read as follows:
 6-4           Sec. 32.053.  COMPLIANCE WITH TEXAS HEALTH STEPS.  The
 6-5     commissioner by rule shall develop procedures to ensure that
 6-6     recipients of medical assistance who are eligible for Texas Health
 6-7     Steps comply with the regimen of care prescribed by the Texas
 6-8     Health Steps program.
 6-9           SECTION 6.  Subchapter A, Chapter 533, Government Code, is
6-10     amended by adding Section 533.0076 to read as follows:
6-11           Sec. 533.0076.  LIMITATIONS ON RECIPIENT DISENROLLMENT.
6-12     (a)  Except as provided by Subsections (b) and (c), and to the
6-13     extent permitted by federal law, the commission may prohibit a
6-14     recipient from disenrolling in a managed care plan under this
6-15     chapter and enrolling in another managed care plan during the
6-16     12-month period after the date the recipient initially enrolls in a
6-17     plan.
6-18           (b)  At any time before the 91st day after the date of a
6-19     recipient's initial enrollment in a managed care plan under this
6-20     chapter, the recipient may disenroll in that plan for any reason
6-21     and enroll in another managed care plan under this chapter.
6-22           (c)  The commission shall allow a recipient who is enrolled
6-23     in a managed care plan under this chapter to disenroll in that plan
6-24     at any time for cause in accordance with federal law.
6-25           SECTION 7.  If before implementing any provision of this Act
6-26     a state agency determines that a waiver or authorization from a
 7-1     federal agency is necessary for implementation, the state agency
 7-2     shall request the waiver or authorization and may delay
 7-3     implementing that provision until the waiver or authorization is
 7-4     granted.
 7-5           SECTION 8.  (a)  Notwithstanding Section 32.0261, Human
 7-6     Resources Code, as added by this Act, the Health and Human Services
 7-7     Commission or the appropriate state agency operating part of the
 7-8     medical assistance program under Chapter 32, Human Resources Code,
 7-9     shall adopt rules in accordance with 42 U.S.C. Section
7-10     1396a(e)(12), as amended, to provide for a period of continuous
7-11     eligibility for a child under 19 years of age who is determined to
7-12     be eligible for medical assistance under that chapter.  The rules
7-13     shall provide that the child remains eligible for medical
7-14     assistance, without additional review by the agency and regardless
7-15     of changes in the child's resources or income, until the earlier
7-16     of:
7-17                 (1)  the 180th day after the date on which the child's
7-18     eligibility was determined; or
7-19                 (2)  the child's 19th birthday.
7-20           (b)  The Health and Human Services Commission or the
7-21     appropriate state agency operating part of the medical assistance
7-22     program under Chapter 32, Human Resources Code, shall adopt rules
7-23     required by this section not later than February 1, 2002.  The
7-24     rules must provide for a six-month period of continuous eligibility
7-25     in accordance with this section for a child whose initial or
7-26     continued eligibility is determined on or after the effective date
 8-1     of the rules.  The rules adopted under this subsection remain in
 8-2     effect until superseded by the rules adopted under Section 32.0261,
 8-3     Human Resources Code, as added by this Act.
 8-4           (c)  This section expires on the date that the rules adopted
 8-5     under Section 32.0261, Human Resources Code, as added by this Act,
 8-6     take effect.
 8-7           SECTION 9.  (a)  The Medicaid legislative oversight committee
 8-8     created under S.B. No. 1156, 77th Legislature, Regular Session,
 8-9     2001, may review and make recommendations regarding legislation
8-10     necessary to accomplish the purposes of Sections 32.025 and 32.026,
8-11     Human Resources Code, as amended by this Act, and Section 32.0261,
8-12     Human Resources Code, as added by this Act.
8-13           (b)  Subsection (a) of this section takes effect only if S.B.
8-14     No. 1156, 77th Legislature, Regular Session, 2001, authorizes the
8-15     creation of the Medicaid legislative oversight committee and is
8-16     enacted and becomes law.  If S.B. No. 1156 does not authorize the
8-17     creation of the committee, is not enacted, or does not become law,
8-18     this section has no effect.
8-19           SECTION 10.  (a)  Except as otherwise provided by this Act,
8-20     this Act takes effect January 1, 2002.
8-21           (b)  Section 32.0261, Human Resources Code, as added by this
8-22     Act, takes effect September 1, 2002, but the appropriate state
8-23     agency may not implement the 12-month period of continuous
8-24     eligibility prescribed by that section until the date on which the
8-25     rules adopted under Subsection (c) of this section take effect.
8-26           (c)  The Health and Human Services Commission or the
 9-1     appropriate state agency operating part of the medical assistance
 9-2     program under Chapter 32, Human Resources Code, shall adopt rules
 9-3     required by Section 32.0261, Human Resources Code, as added by this
 9-4     Act, so that the rules take effect in accordance with that section
 9-5     not earlier than September 1, 2002, or later than June 1, 2003.
 9-6     The rules must provide for a 12-month period of continuous
 9-7     eligibility in accordance with that section for a child whose
 9-8     initial or continued eligibility is determined on or after the
 9-9     effective date of the rules.
9-10           (d)  The Health and Human Services Commission or the
9-11     appropriate agency operating part of the medical assistance program
9-12     under Chapter 32, Human Resources Code, shall adopt rules required
9-13     by Section 32.0262, Human Resources Code, as added by this Act, not
9-14     later than February 1, 2002.
                                                                 S.B. No. 43
            _______________________________     _______________________________
                President of the Senate              Speaker of the House
                  I hereby certify that S.B. No. 43 passed the Senate on
            April 18, 2001, by a viva-voce vote; and that the Senate concurred
            in House amendments on May 27, 2001, by a viva-voce vote.
                                                _______________________________
                                                    Secretary of the Senate
                  I hereby certify that S.B. No. 43 passed the House, with
            amendments, on May 21, 2001, by a non-record vote.
                                                _______________________________
                                                   Chief Clerk of the House
            Approved:
            _______________________________
                         Date
            _______________________________
                       Governor