1-1 AN ACT 1-2 relating to rates and expenditures under the Medicaid and state 1-3 child health plan programs in the Texas-Mexico border region. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter B, Chapter 531, Government Code, is 1-6 amended by adding Section 531.0221 to read as follows: 1-7 Sec. 531.0221. RATES AND EXPENDITURES IN TEXAS-MEXICO BORDER 1-8 REGION. (a) In this section: 1-9 (1) "Child health plan program" means the state child 1-10 health plan program authorized by Chapter 62, Health and Safety 1-11 Code. 1-12 (2) "Committee" means the advisory committee on 1-13 funding disparities in health programs appointed by the 1-14 commissioner under this section. 1-15 (3) "Texas-Mexico border region" has the meaning 1-16 assigned by Section 2056.002. 1-17 (b) The commissioner shall appoint an advisory committee to 1-18 develop a strategic plan for eliminating the disparities between 1-19 the Texas-Mexico border region and other areas of the state in: 1-20 (1) capitation rates under Medicaid managed care and 1-21 the child health plan program for services provided to persons 1-22 younger than 19 years of age; 1-23 (2) fee-for-service per capita expenditures under the 1-24 Medicaid program and the child health plan program for inpatient 1-25 and outpatient hospital services for services provided to persons 2-1 younger than 19 years of age; and 2-2 (3) total professional services expenditures per 2-3 Medicaid recipient younger than 19 years of age or per child 2-4 enrolled in the child health plan program. 2-5 (c) Periodically the committee shall perform the research 2-6 necessary to analyze and compare the rates and expenditures 2-7 described by Subsection (b) and, not later than the date specified 2-8 by the commissioner, produce a report based on the results of that 2-9 analysis and comparison. 2-10 (d) The committee shall, as part of the report required by 2-11 Subsection (c), make recommendations to the commissioner for 2-12 addressing the problems created by disparities documented in the 2-13 report, including recommendations for allocation of funds. 2-14 (e) The commissioner shall appoint nine members to the 2-15 advisory committee in a manner that ensures that the committee: 2-16 (1) represents the spectrum of geographic areas 2-17 included in the Texas-Mexico border region; 2-18 (2) includes persons who are knowledgeable regarding 2-19 the Medicaid program, including Medicaid managed care, and the 2-20 child health plan program; and 2-21 (3) represents the interests of physicians, hospitals, 2-22 patients, managed care organizations, state agencies involved in 2-23 the management and delivery of medical resources of any kind, 2-24 affected communities, and other areas of the state. 2-25 (f) The committee shall elect officers from among the 2-26 members of the committee. 3-1 (g) Appointments to the committee shall be made without 3-2 regard to the race, color, disability, sex, religion, age, or 3-3 national origin of the appointees. 3-4 (h) A member of the committee may not receive compensation, 3-5 but is entitled to reimbursement of travel expenses incurred by 3-6 the member while conducting the business of the committee as 3-7 provided by the General Appropriations Act. 3-8 (i) The commission shall provide administrative support and 3-9 resources to the committee as necessary for the committee to 3-10 perform the duties under this section. 3-11 (j) The committee is not subject to Chapter 2110. 3-12 (k) With advice from the committee, the commission shall 3-13 ensure that: 3-14 (1) the disparities in rates and expenditures 3-15 described by Subsection (b) are eliminated as soon as practicable 3-16 for services provided to a person younger than 19 years of age by 3-17 increasing the rates and expenditures in the Texas-Mexico border 3-18 region, to the extent that funds are specifically appropriated for 3-19 purposes of this subsection, so that the rates and expenditures in 3-20 that region equal, or equal as nearly as possible, the statewide 3-21 average rates and expenditures; and 3-22 (2) a physician providing a service to a Medicaid 3-23 recipient younger than 19 years of age or a recipient of services 3-24 under the child health plan program in the Texas-Mexico border 3-25 region receives, in addition to reimbursement at the rate required 3-26 under Subdivision (1), a bonus to the extent possible with funds 4-1 specifically appropriated for purposes of this subsection. 4-2 (l) For purposes of Subsection (k), the commission shall 4-3 exclude data from the Texas-Mexico border region in determining the 4-4 statewide average capitation rates under Medicaid managed care and 4-5 the child health plan program and the statewide average total 4-6 expenditures per Medicaid recipient younger than 19 years of age or 4-7 per child enrolled in the child health plan program. 4-8 (m) With advice from the committee and other appropriate 4-9 groups, the commission may vary the amount of any rate increases 4-10 for services required by Subsection (k) according to the type of 4-11 service provided. 4-12 (n) The commission shall develop mechanisms to pass any rate 4-13 increase required by Subsection (k) directly to providers, 4-14 including providers in Medicaid managed care service delivery areas 4-15 with health maintenance organization, prepaid health plan, or 4-16 primary care case management models. 4-17 (o) The commission shall contract with a public university 4-18 to: 4-19 (1) measure changes occurring from September 1, 2001, 4-20 to August 31, 2004, in the number of health care providers 4-21 participating in the Medicaid program or the child health plan 4-22 program in the Texas-Mexico border region and resulting effects on 4-23 consumer access to health care and consumer utilization; 4-24 (2) determine: 4-25 (A) the effects, if any, of the changes in rates 4-26 and expenditures required by Subsection (k); and 5-1 (B) if funding available and used for changes in 5-2 rates and expenditures was sufficient to produce measurable 5-3 effects; 5-4 (3) make a recommendation regarding whether Medicaid 5-5 rate increases should be expanded to include Medicaid services 5-6 provided to adults in the Texas-Mexico border region; and 5-7 (4) not later than December 1, 2004, submit a report 5-8 to the legislature. 5-9 (p) This section expires September 1, 2011. 5-10 SECTION 2. If before implementing any provision of this Act 5-11 a state agency determines that a waiver or authorization from a 5-12 federal agency is necessary for implementation of that provision, 5-13 the agency affected by the provision shall request the waiver or 5-14 authorization and may delay implementing that provision until the 5-15 waiver or authorization is granted. 5-16 SECTION 3. (a) The changes in rates and expenditures 5-17 required by Subsection (k), Section 531.0221, Government Code, as 5-18 added by this Act, must be initiated not later than September 1, 5-19 2002. 5-20 (b) The advisory committee on funding disparities in health 5-21 programs shall deliver the first report required by Subsection (c), 5-22 Section 531.0221, Government Code, as added by this Act, not later 5-23 than January 1, 2002. 5-24 SECTION 4. This Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1053 passed the Senate on April 25, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1053 passed the House on May 23, 2001, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor