By:  Zaffirini                                        S.B. No. 1156
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the financing of, and eligibility for, the state
 1-3     Medicaid program; making an appropriation.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 32.024, Human Resources Code, is amended
 1-6     by adding Subsection (x) to read as follows:
 1-7           (x)  In its rules and standards governing the vendor drug
 1-8     program, the department may not limit benefits for the number of
 1-9     medications prescribed to a recipient of prescription drug benefits
1-10     under the medical assistance program.
1-11           SECTION 2.  Subchapter B, Chapter 32, Human Resources Code,
1-12     is amended by adding Section 32.02415 to read as follows:
1-13           Sec. 32.02415.  EXCLUSION OF ASSETS AND RESOURCES.  To the
1-14     extent allowed by federal law, the department may not consider the
1-15     assets and resources of a child under 19 years of age or the assets
1-16     and resources of the child's parents or other caretaker for
1-17     purposes of determining the child's eligibility for medical
1-18     assistance.
1-19           SECTION 3.  Section 32.025, Human Resources Code, is amended
1-20     by adding Subsections (d) and (e) to read as follows:
1-21           (d)  To the extent allowed by federal law and except as
1-22     otherwise provided by this section, the department shall adopt
1-23     application forms and procedures for a request for medical
 2-1     assistance provided to a child under 19 years of age that are
 2-2     similar to the application forms and procedures adopted under
 2-3     Section 62.103, Health and Safety Code.
 2-4           (e)  The department shall permit an application requesting
 2-5     medical assistance for a child under 19 years of age to be
 2-6     conducted by mail instead of through a personal appearance at a
 2-7     department office.
 2-8           SECTION 4.  Section 32.026, Human Resources Code, is amended
 2-9     by adding Subsections (d) and (e) to read as follows:
2-10           (d)  In adopting rules under this section, the department
2-11     shall ensure, to the extent allowed by federal law, that
2-12     documentation and verification procedures used in determining and
2-13     certifying the eligibility and need for medical assistance of a
2-14     child under 19 years of age are similar to the documentation and
2-15     verification procedures used to determine a child's eligibility for
2-16     coverage under Chapter 62, Health and Safety Code.
2-17           (e)  The department shall permit a recertification review of
2-18     the eligibility and need for medical assistance of a child under 19
2-19     years of age to be conducted by telephone or mail instead of
2-20     through a personal appearance at a department office.
2-21           SECTION 5.  Subchapter B, Chapter 32, Human Resources Code,
2-22     is amended by adding Section 32.0261 to read as follows:
2-23           Sec. 32.0261.  CONTINUOUS ELIGIBILITY.  The department shall
2-24     adopt rules in accordance with 42 U.S.C. Section 1396a(e)(12), as
2-25     amended, to provide for a period of continuous eligibility for a
2-26     child under 19 years of age who is determined to be eligible for
 3-1     medical assistance under this chapter.  The rules shall provide
 3-2     that the child remains eligible for medical assistance, without
 3-3     additional review by the department and regardless of changes in
 3-4     the child's resources or income, until the earlier of:
 3-5                 (1)  the first anniversary of the date on which the
 3-6     child's eligibility was determined; or
 3-7                 (2)  the child's 19th birthday.
 3-8           SECTION 6.  Subchapter B, Chapter 32, Human Resources Code,
 3-9     is amended by adding Sections 32.053-32.055 to read as follows:
3-10           Sec. 32.053.  DEMONSTRATION PROJECT FOR CERTAIN MEDICATIONS
3-11     AND RELATED SERVICES.  (a)  The department shall establish a
3-12     five-year demonstration project to provide to a person through the
3-13     medical assistance program psychotropic medications and related
3-14     laboratory and physician services necessary to conform to a
3-15     prescribed medical regime for those medications.
3-16           (b)  A person is eligible to participate in the demonstration
3-17     project if the person:
3-18                 (1)  has been diagnosed with schizophrenia or bipolar
3-19     disorder;
3-20                 (2)  is at least 19 years of age, but not more than 64
3-21     years of age;
3-22                 (3)  has a net family income that is at or below 200
3-23     percent of the federal poverty level;
3-24                 (4)  is not covered by a health benefits plan offering
3-25     adequate coverage, as determined by the department; and
3-26                 (5)  is not otherwise eligible for medical assistance
 4-1     at the time the person's eligibility for participation in the
 4-2     demonstration project is determined.
 4-3           (c)  A participant in the demonstration project is not
 4-4     subject to the monthly three-prescription limit under the medical
 4-5     assistance program.
 4-6           (d)  Participation in the demonstration project does not
 4-7     entitle a participant to other services provided under the medical
 4-8     assistance program.
 4-9           (e)  Not later than December 1 of each even-numbered year,
4-10     the department shall submit a biennial report to the legislature
4-11     regarding the department's progress in establishing and operating
4-12     the demonstration project.
4-13           (f)  Not later than December 1, 2006, the department shall
4-14     evaluate the cost-effectiveness of the demonstration project,
4-15     including whether the preventive drug treatments and related
4-16     services provided under the project offset future long-term care
4-17     costs for project participants.  If the results of the evaluation
4-18     indicate that the project is cost-effective, the department shall
4-19     incorporate a request for funding for the continuation of the
4-20     program in the department's budget request for the next state
4-21     fiscal biennium.
4-22           (g)  This section expires September 1, 2007.
4-23           Sec. 32.054.  DEMONSTRATION PROJECT FOR PERSONS WITH HIV
4-24     INFECTION OR AIDS.  (a)  In this section, "AIDS" and "HIV" have the
4-25     meanings assigned by Section 81.101, Health and Safety Code.
4-26           (b)  The department shall establish a demonstration project
 5-1     to provide a person with HIV infection or AIDS with the following
 5-2     services and medications through the medical assistance program:
 5-3                 (1)  services provided by a physician, physician
 5-4     assistant, advanced practice nurse, or other health care provider
 5-5     specified by the department;
 5-6                 (2)  anti-retroviral drug treatments;
 5-7                 (3)  other medications determined to be necessary for
 5-8     treatment of a condition related to HIV infection or AIDS;
 5-9                 (4)  vaccinations for hepatitis B and pneumonia;
5-10                 (5)  pap smears, colposcopy, and other diagnostic
5-11     procedures necessary to monitor gynecologic complications resulting
5-12     from HIV infection or AIDS in women;
5-13                 (6)  laboratory and other diagnostic services,
5-14     including periodic testing for CD4+ T-cell counts, viral load
5-15     determination, and phenotype or genotype testing if clinically
5-16     indicated; and
5-17                 (7)  other laboratory and radiological testing
5-18     necessary to monitor potential toxicity of therapy.
5-19           (c)  The department shall establish the demonstration project
5-20     in at least two counties with a high prevalence of HIV infection
5-21     and AIDS.  The department may request financial participation from
5-22     the counties in which the department establishes the demonstration
5-23     project.
5-24           (d)  A person is eligible to participate in the demonstration
5-25     project if the person:
5-26                 (1)  has been diagnosed with HIV infection or AIDS by a
 6-1     physician;
 6-2                 (2)  is under 65 years of age;
 6-3                 (3)  has a net family income that is at or below 200
 6-4     percent of the federal poverty level;
 6-5                 (4)  is a resident of a county included in the project
 6-6     or, subject to guidelines established by the department, is
 6-7     receiving medical care for HIV infection or AIDS through a facility
 6-8     located in a county included in the project;
 6-9                 (5)  is not covered by a health benefits plan offering
6-10     adequate coverage, as determined by the department; and
6-11                 (6)  is not otherwise eligible for medical assistance
6-12     at the time the person's eligibility for participation in the
6-13     demonstration project is determined.
6-14           (e)  Participation in the demonstration project does not
6-15     entitle a participant to other services provided under the medical
6-16     assistance program.
6-17           (f)  A participant in the demonstration project is not
6-18     subject to the monthly three-prescription limit under the medical
6-19     assistance program.
6-20           (g)  Not later than December 1 of each even-numbered year,
6-21     the department shall submit a biennial report to the legislature
6-22     regarding the department's progress in establishing and operating
6-23     the demonstration project.
6-24           (h)  Not later than December 1, 2006, the department shall
6-25     evaluate the cost-effectiveness of the demonstration project,
6-26     including whether the services and medications provided offset
 7-1     future higher costs for project participants.  If the results of
 7-2     the evaluation indicate that the project is cost-effective, the
 7-3     department shall incorporate a request for funding for the
 7-4     expansion of the project into additional counties or throughout the
 7-5     state, as appropriate, in the department's budget request for the
 7-6     next state fiscal biennium.
 7-7           (i)  This section expires September 1, 2007.
 7-8           Sec. 32.055.  DEMONSTRATION PROJECT FOR WOMEN'S HEALTH CARE
 7-9     SERVICES.  (a)  The department shall establish a five-year
7-10     demonstration project through the medical assistance program to
7-11     expand access to preventive health and family planning services for
7-12     women.  A woman eligible under Subsection (b) to participate in the
7-13     demonstration project may receive preventive health and family
7-14     planning services including:
7-15                 (1)  medical history;
7-16                 (2)  physical examinations;
7-17                 (3)  counseling and education on contraceptive methods;
7-18                 (4)  provision of contraceptives;
7-19                 (5)  health screenings, including screening for:
7-20                       (A)  diabetes;
7-21                       (B)  cervical cancer;
7-22                       (C)  breast cancer;
7-23                       (D)  sexually transmitted diseases;
7-24                       (E)  hypertension;
7-25                       (F)  cholesterol; and
7-26                       (G)  tuberculosis;
 8-1                 (6)  risk assessment; and
 8-2                 (7)  referral of medical problems to appropriate
 8-3     providers.
 8-4           (b)  A woman is eligible to participate in the demonstration
 8-5     project if the woman:
 8-6                 (1)  is of childbearing age, as determined by the
 8-7     department;
 8-8                 (2)  has a net family income that is at or below 185
 8-9     percent of the federal poverty level; and
8-10                 (3)  is not otherwise eligible for the medical
8-11     assistance program.
8-12           (c)  The department shall compile a list of potential funding
8-13     sources a client can use to help pay for treatment for health
8-14     problems:
8-15                 (1)  identified using services provided to the client
8-16     under the demonstration project; and
8-17                 (2)  for which the client is not eligible to receive
8-18     treatment under the medical assistance program.
8-19           (d)  Not later than December 1 of each even-numbered year,
8-20     the department shall submit a report to the legislature regarding
8-21     the department's progress in establishing and operating the
8-22     demonstration project.
8-23           (e)  This section expires September 1, 2007.
8-24           SECTION 7.  Subchapter B, Chapter 32, Human Resources Code,
8-25     is amended by adding Section 32.056 to read as follows:
8-26           Sec. 32.056.  DEMONSTRATION PROJECT FOR MEDICAL ASSISTANCE
 9-1     BUY-IN PROGRAM FOR CERTAIN RECIPIENTS WITH DISABILITIES.  (a)  The
 9-2     department shall establish a demonstration project to implement in
 9-3     five sites a medical assistance buy-in program in accordance with
 9-4     the Ticket to Work and Work Incentives Improvement Act of 1999
 9-5     (Pub. L. No. 106-170), as amended, to provide medical assistance
 9-6     to:
 9-7                 (1)  a person who:
 9-8                       (A)  is at least 16 years of age, but is not more
 9-9     than 64 years of age; and
9-10                       (B)  has earned income that exceeds the limit
9-11     established by federal law for eligibility for Supplemental
9-12     Security Income (SSI) (42 U.S.C. Section 1381 et seq.), as amended,
9-13     but is otherwise eligible for those benefits; and
9-14                 (2)  an employed individual with a medically improved
9-15     disability, as defined by 42 U.S.C. Section 1396d(v)(1), as
9-16     amended.
9-17           (b)  In establishing the demonstration project, the
9-18     department may:
9-19                 (1)  establish income, assets, and resource limitations
9-20     for eligibility for participation in the demonstration project; and
9-21                 (2)  require a participant in the demonstration project
9-22     to pay premiums and other cost-sharing charges in accordance with
9-23     42 U.S.C. Section 1396o(g)(1), as amended.
9-24           (c)  The department shall require a participant in the
9-25     project to pay premiums to the extent required by 42 U.S.C. Section
9-26     1396o(g)(2), as amended.
 10-1          (d)  Not later than December 1, 2002, the department shall
 10-2    evaluate the effectiveness of the demonstration project in
 10-3    providing health care services to employed persons with
 10-4    disabilities.  If the results of the evaluation indicate that the
 10-5    project is effective, the department shall incorporate a request
 10-6    for funding for the continuation or expansion of the program in the
 10-7    department's budget request for the next state fiscal biennium.
 10-8          (e)  This section expires September 1, 2003.
 10-9          SECTION 8.  Section 531.0214(d), Government Code, is amended
10-10    to read as follows:
10-11          (d)  The commission shall develop the database system in a
10-12    manner that will enable a complete analysis of the use of
10-13    prescription medications[, including information relating to:]
10-14                [(1)  Medicaid clients for whom more than three
10-15    medications have been prescribed; and]
10-16                [(2)  the medical effect denial of Medicaid coverage
10-17    for more than three medications has had on Medicaid clients].
10-18          SECTION 9.  Subchapter A, Chapter 533, Government Code, is
10-19    amended by adding Sections 533.0055 and 533.016 to read as follows:
10-20          Sec. 533.0055.  EVALUATION OF REPORTING REQUIREMENTS AND
10-21    INSPECTION PROCEDURES.  (a)  The commission shall:
10-22                (1)  evaluate on-site inspection procedures of managed
10-23    care organizations contracting with the commission under this
10-24    chapter and evaluate methods to streamline those procedures to
10-25    assist the commission in determining necessary and effective
10-26    quality control measures and required data;
 11-1                (2)  evaluate methods to streamline reporting
 11-2    requirements for managed care organizations contracting with the
 11-3    commission under this chapter, including:
 11-4                      (A)  combining information required to be
 11-5    reported into a quarterly management report;
 11-6                      (B)  eliminating unnecessary or duplicative
 11-7    reporting requirements; and
 11-8                      (C)  requiring managed care organizations to use
 11-9    uniform forms developed by the commission for referrals for
11-10    services and credentialing of health care providers providing
11-11    health care services to recipients; and
11-12                (3)  require managed care organizations contracting
11-13    with the commission under this chapter to evaluate reporting
11-14    requirements for health care providers to identify methods of
11-15    reducing the administrative burden placed on the providers,
11-16    including:
11-17                      (A)  reducing the complexity of forms health care
11-18    providers are required to complete; and
11-19                      (B)  eliminating unnecessary or duplicative
11-20    reporting requirements.
11-21          (b)  The commission shall submit a report to the legislature
11-22    regarding the evaluation of and methods for streamlining on-site
11-23    inspection procedures and reporting requirements for managed care
11-24    organizations and health care providers providing health care
11-25    services to recipients.  The report must include recommendations on
11-26    which methods should be implemented and a schedule for
 12-1    implementation.
 12-2          (c)  This section expires September 1,2002.
 12-3          Sec. 533.016.  INTERAGENCY SHARING OF INFORMATION.  The
 12-4    commission shall require a health and human services agency
 12-5    implementing the Medicaid managed care program to provide to each
 12-6    other health and human services agency implementing the Medicaid
 12-7    managed care program information reported to that agency by a
 12-8    managed care organization or health care provider providing
 12-9    services to recipients.
12-10          SECTION 10.  The sum of __________ is hereby appropriated to
12-11    the Health and Human Services Commission for the implementation of
12-12    this Act.
12-13          SECTION 11.  The Health and Human Services Commission or the
12-14    appropriate state agency operating part of the medical assistance
12-15    program under Chapter 32, Human Resources Code, shall adopt rules
12-16    required by Section 32.0261, Human Resources Code, as added by this
12-17    Act, not later than October 1, 2001.  The rules must provide for a
12-18    period of continuous eligibility in accordance with that section
12-19    for a child whose initial or continued eligibility is determined on
12-20    or after the effective date of the rules.
12-21          SECTION 12.  The state agencies responsible for implementing
12-22    the demonstration projects required by Sections 32.053-32.055,
12-23    Human Resources Code, as added by this Act, shall request and
12-24    actively pursue any necessary waivers or authorizations from the
12-25    Health Care Financing Administration or other appropriate entities
12-26    to enable the agencies to implement the demonstration projects not
 13-1    later than September 1, 2002.  The agencies may delay implementing
 13-2    the demonstration projects until the necessary waivers or
 13-3    authorizations are granted.
 13-4          SECTION 13.  The Health and Human Services Commission shall
 13-5    submit the report required by Section 533.0055(b), Government Code,
 13-6    as added by this Act, not later than November 1, 2002.
 13-7          SECTION 14.  (a)  Subject to Subsection (b) of this section,
 13-8    if before implementing any provision of this Act a state agency
 13-9    determines that a waiver or authorization from a federal agency is
13-10    necessary for implementation of that provision, the agency affected
13-11    by the provision shall request the waiver or authorization and may
13-12    delay implementing that provision until the waiver or authorization
13-13    is granted.
13-14          (b)  Implementation of Sections 32.053-32.055, Human
13-15    Resources Code, as added by this Act, is governed by Section 12 of
13-16    this Act.
13-17          SECTION 15.  (a)  Except as provided by Subsection (b) of
13-18    this section, this Act takes effect September 1, 2001, and applies
13-19    to a person receiving medical assistance on or after that date
13-20    regardless of the date on which the person began receiving that
13-21    medical assistance.
13-22          (b)  Sections 6, 9, and 12 of this Act take effect
13-23    immediately if this Act receives a vote of two-thirds of all the
13-24    members elected to each house, as provided by Section 39, Article
13-25    III, Texas Constitution.  If this Act does not receive the vote
13-26    necessary for immediate effect, Sections 6, 9, and 12 of this Act
 14-1    take effect September 1, 2001.