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