By:  Nelson                                            S.B. No. 284
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to streamlining reporting requirements and inspection
 1-3     procedures under the Medicaid managed care program.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter A, Chapter 533, Government Code, is
 1-6     amended by adding Sections 533.0055, 533.016, 533.017, and 533.018
 1-7     to read as follows:
 1-8           Sec. 533.0055.  EVALUATION OF REPORTING REQUIREMENTS AND
 1-9     INSPECTION PROCEDURES.  (a)  The commission shall:
1-10                 (1)  evaluate on-site inspection procedures of managed
1-11     care organizations contracting with the commission under this
1-12     chapter and evaluate methods to streamline those procedures to
1-13     assist the commission in determining necessary and effective
1-14     quality control measures and required data;
1-15                 (2)  evaluate methods to streamline reporting
1-16     requirements for managed care organizations contracting with the
1-17     commission under this chapter, including:
1-18                       (A)  combining information required to be
1-19     reported into a quarterly management report;
1-20                       (B)  eliminating unnecessary or duplicative
1-21     reporting requirements; and
1-22                       (C)  requiring managed care organizations to use
1-23     uniform forms developed by the commission for referrals for
1-24     services and credentialing of health care providers providing
1-25     health care services to recipients; and
 2-1                 (3)  require managed care organizations contracting
 2-2     with the commission under this chapter to evaluate reporting
 2-3     requirements for health care providers to identify methods of
 2-4     reducing the administrative burden placed on the providers,
 2-5     including:
 2-6                       (A)  reducing the complexity of forms health care
 2-7     providers are required to complete; and
 2-8                       (B)  eliminating unnecessary or duplicative
 2-9     reporting requirements.
2-10           (b)  The commission shall submit a report to the legislature
2-11     regarding the evaluation of and methods for streamlining on-site
2-12     inspection procedures and reporting requirements for managed care
2-13     organizations and health care providers providing health care
2-14     services to recipients.  The report must include recommendations on
2-15     which methods should be implemented and a schedule for
2-16     implementation.
2-17           (c)  This section expires September 1, 2002.
2-18           Sec. 533.016.  INTERAGENCY SHARING OF INFORMATION.  The
2-19     commission shall require a health and human services agency
2-20     implementing the Medicaid managed care program to provide to each
2-21     other health and human services agency implementing the Medicaid
2-22     managed care program information reported to that agency by a
2-23     managed care organization or health care provider providing
2-24     services to recipients.
2-25           Sec. 533.017.  INTERAGENCY MEMORANDUM OF UNDERSTANDING.  The
2-26     chief executive officers of the commission, the Texas Department of
 3-1     Insurance, and, if appropriate, health and human services agencies
 3-2     shall execute and provide to all Medicaid health maintenance
 3-3     organizations interagency memoranda of understanding that maximize
 3-4     interagency coordination and eliminate existing and prevent future
 3-5     duplicative monitoring, regulation, and enforcement policies and
 3-6     processes.
 3-7           Sec. 533.018.  SINGLE AUDIT INSTRUMENT.  (a)  The commission
 3-8     and the Texas Department of Insurance shall develop a single audit
 3-9     instrument to be used by the commission and health and human
3-10     services agencies and their contractors and the Texas Department of
3-11     Insurance and their contractors for regularly scheduled,
3-12     comprehensive, on-site readiness, performance, compliance, or other
3-13     reviews, audits, and examinations of Medicaid health maintenance
3-14     organizations and shall specify in detail the process the agencies
3-15     shall use to amend the single audit instrument.
3-16           (b)  The single audit instrument to be developed by the
3-17     commission and the Texas Department of Insurance shall:
3-18                 (1)  include a means for assessing compliance with all
3-19     applicable state, federal, accreditation, and contractual
3-20     requirements that each respective agency is authorized to enforce,
3-21     including financial, actuarial, operational, quality of care, and
3-22     other requirements, on a regular, periodic basis;
3-23                 (2)  include the means for assessing compliance of
3-24     documents, records, and electronic files that the commission or the
3-25     Texas Department of Insurance requires Medicaid health maintenance
3-26     organizations to submit for review in advance of or as an
 4-1     alternative to an on-site review, audit, or examination; and
 4-2                 (3)  include the means for assessing compliance through
 4-3     on-site reviews, audits, and examinations, including document
 4-4     review, testing or review of electronic systems, and observation
 4-5     and interviews of Medicaid health maintenance organization
 4-6     employees.
 4-7           SECTION 2.  The Health and Human Services Commission and the
 4-8     Texas Department of Insurance shall complete the interagency
 4-9     memoranda of understanding required by Section 533.017, Government
4-10     Code, as added by this Act, and the single audit instrument
4-11     required by Section 533.018, Government Code, as added by this Act,
4-12     not later than November 30, 2001.
4-13           SECTION 3.  The Health and Human Services Commission shall
4-14     submit the report required by Subsection (b), Section 533.0055,
4-15     Government Code, as added by this Act, not later than November 1,
4-16     2002.
4-17           SECTION 4.  This Act takes effect immediately if it receives
4-18     a vote of two-thirds of all the members elected to each house, as
4-19     provided by Section 39, Article III, Texas Constitution.  If this
4-20     Act does not receive the vote necessary for immediate effect, this
4-21     Act takes effect September 1, 2001.