1-1 AN ACT 1-2 relating to the creation and duties of a task force on rate-setting 1-3 methodologies for the Medicaid and state child health plan 1-4 programs. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter B, Chapter 531, Government Code, is 1-7 amended by adding Section 531.0221 to read as follows: 1-8 Sec. 531.0221. TASK FORCE ON RATE-SETTING METHODOLOGIES FOR 1-9 MEDICAID PROGRAM AND STATE CHILD HEALTH PLAN PROGRAM. (a) In this 1-10 section: 1-11 (1) "Child health plan program" means the state child 1-12 health plan program authorized by Chapter 62, Health and Safety 1-13 Code. 1-14 (2) "Health care provider" means a hospital, long-term 1-15 care facility, physician, dentist, emergency medical services 1-16 provider, or other provider of services eligible for reimbursement 1-17 under the Medicaid or child health plan program. 1-18 (3) "Task force" means the task force on rate-setting 1-19 methodologies for the Medicaid and child health plan programs 1-20 appointed by the commissioner under this section. 1-21 (b) The commissioner shall appoint a task force to examine 1-22 and evaluate rate-setting methodologies for the Medicaid program 1-23 and the child health plan program. 1-24 (c) The commissioner shall appoint 11 members to serve on 1-25 the task force. The task force shall be composed of: 2-1 (1) representatives of the Texas Department of Health 2-2 who are involved in the administration of the Medicaid program or 2-3 the child health plan program; 2-4 (2) health economists active in the area of public 2-5 health research who are associated with an academic institution; 2-6 (3) public health professionals, including at least 2-7 one epidemiologist; 2-8 (4) health care providers or their representatives; 2-9 and 2-10 (5) representatives of one or more health maintenance 2-11 organizations that arrange health care services for members in 2-12 Medicaid managed care or the child health plan program or both, so 2-13 long as experience in both Medicaid managed care and the child 2-14 health plan program is represented on the task force; and 2-15 (6) one or more public representatives. 2-16 (d) A member of the task force may not receive compensation 2-17 but is entitled to reimbursement of travel expenses incurred by the 2-18 member while conducting the business of the task force as provided 2-19 by the General Appropriations Act. 2-20 (e) The commission shall provide administrative support and 2-21 resources to the task force as necessary for the task force to 2-22 perform the duties under this section. 2-23 (f) The task force is not subject to Chapter 2110. 2-24 (g) The task force shall perform the research necessary to 2-25 evaluate the rate-setting methodologies for the Medicaid program 2-26 and the child health plan program and, not later than December 1, 3-1 2002, produce a report based on the results of that evaluation. 3-2 The report must include recommendations of the task force on ways 3-3 to improve the rate-setting methodologies. 3-4 (h) The task force shall, in preparing the report required 3-5 under Subsection (g), examine relevant information including: 3-6 (1) the incidence and prevalence of disease in 3-7 comparison to the utilization of services; 3-8 (2) the number of health care providers participating 3-9 in the Medicaid program and the child health plan program who are 3-10 providing services in the various geographic areas of the state; 3-11 (3) the number of people eligible for the Medicaid 3-12 program and the child health plan program; 3-13 (4) the potential effects of developing incentive 3-14 programs such as rate increases targeted to encourage health care 3-15 providers to relocate or remain in underserved areas; 3-16 (5) the potential effects of developing a tiered 3-17 system of rate increases based on level of need; 3-18 (6) the expenditures in Texas under the Medicaid 3-19 program and the child health plan program, compared to comparable 3-20 national averages and the averages of the top 15 industrial states 3-21 as ranked by the United States Department of Commerce Bureau of 3-22 Economic Analysis, based on gross state product; and 3-23 (7) any other significant factors relating to 3-24 rate-setting methodologies. 3-25 (i) The task force shall seek technical assistance, if 3-26 needed, from representatives of the federal Health Care Financing 4-1 Administration. 4-2 (j) The task force shall deliver the report required under 4-3 Subsection (g) to the commissioner and to the legislature. 4-4 (k) The task force shall: 4-5 (1) continue to monitor the information evaluated in 4-6 the report required under Subsection (g) and any changes made in 4-7 the rate-setting methodologies for the Medicaid program and the 4-8 child health plan program; and 4-9 (2) submit another report with any additional 4-10 recommendations to the commissioner and the legislature not later 4-11 than December 1, 2004. 4-12 (l) This section expires September 1, 2005. 4-13 SECTION 2. This Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1299 passed the Senate on April 26, 2001, by the following vote: Yeas 30, Nays 0, one present not voting; and that the Senate concurred in House amendment on May 26, 2001, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1299 passed the House, with amendment, on May 23, 2001, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor