1-1     By:  Shapleigh                                         S.B. No. 908
 1-2           (In the Senate - Filed February 23, 2001; February 27, 2001,
 1-3     read first time and referred to Committee on Health and Human
 1-4     Services; April 3, 2001, reported favorably by the following vote:
 1-5     Yeas 6, Nays 0; April 3, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the establishment of a program of all-inclusive care
 1-9     for the elderly (PACE).
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter B, Chapter 32, Human Resources Code,
1-12     is amended by adding Section 32.053 to read as follows:
1-13           Sec. 32.053.  PROGRAM OF ALL-INCLUSIVE CARE FOR THE ELDERLY
1-14     (PACE).  (a)  The department, as a part of the medical assistance
1-15     program, shall develop and implement a program of all-inclusive
1-16     care for the elderly (PACE) in accordance with Section 4802 of the
1-17     Balanced Budget Act of 1997 (Pub. L. No. 105-33), as amended.  The
1-18     department shall provide medical assistance to a participant in the
1-19     PACE program in the manner and to the extent authorized by federal
1-20     law.
1-21           (b)  The department shall adopt rules as necessary to
1-22     implement this section.  In adopting rules, the department shall:
1-23                 (1)  use the Bienvivir Senior Health Services of El
1-24     Paso initiative as a model for the program; and
1-25                 (2)  ensure that a person is not required to hold a
1-26     certificate of authority as a health maintenance organization under
1-27     the Texas Health Maintenance Organization Act (Chapter 20A,
1-28     Vernon's Texas Insurance Code) to provide services under the PACE
1-29     program.
1-30           (c)  The department may not contract with a person to provide
1-31     services under the PACE program unless the person:
1-32                 (1)  purchases reinsurance in an amount determined by
1-33     the department that is sufficient to ensure the person's continued
1-34     solvency; or
1-35                 (2)  has the financial resources sufficient to cover
1-36     expenses in the event of the person's insolvency.
1-37           (d)  To demonstrate sufficiency of financial resources for
1-38     purposes of Subsection (c)(2), a person may use cash reserves, a
1-39     letter of credit, a guarantee of a company affiliated with the
1-40     person, or a combination of those arrangements.  The amount of a
1-41     person's financial arrangement must be at least equal to the sum
1-42     of:
1-43                 (1)  the total capitation revenue for one month; and
1-44                 (2)  the average monthly payment of operating expenses.
1-45           (e)  The department, with the cooperation of the Texas
1-46     Department on Aging and area agencies on aging, shall develop and
1-47     implement a coordinated plan to promote PACE program sites
1-48     operating under this section.  The department shall adopt policies
1-49     and procedures to ensure that caseworkers and any other appropriate
1-50     department staff discuss the benefits of participating in the PACE
1-51     program with long-term care clients.
1-52           SECTION 2.  The state agency administering the program of
1-53     all-inclusive care for the elderly (PACE) implemented under Section
1-54     32.053, Human Resources Code, as added by this Act, shall use its
1-55     best efforts to have in operation six PACE program sites for the
1-56     state fiscal year beginning September 1, 2001, 11 PACE program
1-57     sites  for the state fiscal year beginning September 1, 2002, and
1-58     16 PACE program sites for the state fiscal year beginning September
1-59     1, 2003.
1-60           SECTION 3.  (a)  In this section, "PACE program" means a
1-61     program of all-inclusive care for the elderly (PACE) established in
1-62     accordance with Section 4802 of the Balanced Budget Act of 1997
1-63     (Pub. L. No. 105-33), as amended.
1-64           (b)  If before June 1, 2004, the state does not receive
 2-1     federal approval for the operation of all PACE program sites for
 2-2     which the state has applied solely because the federal limit on the
 2-3     number of new PACE program sites allowed nationwide per year has
 2-4     been attained, the Health and Human Services Commission and Texas
 2-5     Department of Human Services, not later than September 1, 2004,
 2-6     shall examine federal laws and regulations regarding PACE programs
 2-7     and identify changes to law that would result in an increased
 2-8     number of PACE programs in this state.
 2-9           (c)  Not later than December 1, 2004, the commissioner of
2-10     health and human services shall submit to the legislature a written
2-11     report concerning the results of the examination conducted under
2-12     Subsection (b) of this section.  The report must include any
2-13     recommendations for memorializing the Congress of the United States
2-14     to request changes to federal laws or regulations.
2-15           SECTION 4.  As soon as practicable after the effective date
2-16     of this Act, the Health and Human Services Commission shall submit
2-17     an amendment to the state's Medicaid plan authorizing the state to
2-18     implement the program of all-inclusive care for the elderly (PACE)
2-19     established under Section 32.053, Human Resources Code, as added by
2-20     this Act.  The commission is not required to submit an additional
2-21     amendment to the state's Medicaid plan each time the state agency
2-22     administering the PACE program selects and enters into a proposed
2-23     agreement with a provider to deliver services under the program.
2-24           SECTION 5.  If before implementing any provision of this Act,
2-25     a state agency determines that a waiver or authorization from a
2-26     federal agency is necessary for implementation, the state agency
2-27     shall request the waiver or authorization and may delay
2-28     implementing that provision until the waiver or authorization is
2-29     granted.
2-30           SECTION 6.  This Act takes effect September 1, 2001.
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