By Nelson                                              S.B. No. 100
         77R990 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to an evaluation of a limitation on the number of managed
 1-3     care organizations permitted to provide health care services to
 1-4     recipients of medical assistance.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Subchapter A, Chapter 533, Government Code, is
 1-7     amended by adding Section 533.0041 to read as follows:
 1-8           Sec. 533.0041.  EVALUATION OF LIMITATION ON NUMBER OF MANAGED
 1-9     CARE ORGANIZATIONS. (a)  The commission shall:
1-10                 (1)  evaluate the appropriateness and potential effect
1-11     of imposing a limitation on the number of managed care
1-12     organizations permitted to contract with the commission to provide
1-13     health care services within each health care service region; and
1-14                 (2)  make recommendations to the legislature based on
1-15     that evaluation.
1-16           (b)  The evaluation must include an assessment of whether the
1-17     limitation described by Subsection (a) will affect the market share
1-18     of each managed care organization permitted to contract with the
1-19     commission in a manner that will promote successful implementation
1-20     of delivery of health care services to recipients through managed
1-21     care.
1-22           (c)  This section expires September 1, 2003.
1-23           SECTION 2. The Health and Human Services Commission shall
1-24     submit the recommendations required by Section 533.0041, Government
 2-1     Code, as added by this Act, not later than November 1, 2002.
 2-2           SECTION 3. This Act takes effect immediately if it receives a
 2-3     vote of two-thirds of all the members elected to each house, as
 2-4     provided by Section 39, Article III, Texas Constitution.  If this
 2-5     Act does not receive the vote necessary for immediate effect, this
 2-6     Act takes effect September 1, 2001.