By:  Lucio, Shapleigh                                 S.B. No. 1299
                                A BILL TO BE ENTITLED
 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; and
 2-8                 (4)  health care providers or their representatives.
 2-9           (d)  A member of the task force may not receive compensation
2-10     but is entitled to reimbursement  of travel expenses incurred by
2-11     the member while conducting the business of the task force as
2-12     provided by the General Appropriations Act.
2-13           (e)  The commission shall provide administrative support and
2-14     resources to the task force as necessary for the task force to
2-15     perform the duties under this section.
2-16           (f)  The task force is not subject to Chapter 2110.
2-17           (g)  The task force shall perform the research necessary to
2-18     evaluate the rate-setting methodologies for the Medicaid program
2-19     and the child health plan program and, not later than December 1,
2-20     2002, produce a report based on the results of that evaluation.
2-21     The report must include recommendations of the task force on ways
2-22     to improve the rate-setting methodologies.
2-23           (h)  The task force shall, in preparing the report required
2-24     under Subsection (g), examine relevant information including:
2-25                 (1)  the incidence and prevalence of disease in
2-26     comparison to the utilization of services;
 3-1                 (2)  the number of health care providers participating
 3-2     in the Medicaid program and the child health plan program who are
 3-3     providing services in the various geographic areas of the state;
 3-4                 (3)  the number of people eligible for the Medicaid
 3-5     program and the child health plan program;
 3-6                 (4)  the potential effects of developing incentive
 3-7     programs such as rate increases targeted to encourage health care
 3-8     providers to relocate or remain in underserved areas;
 3-9                 (5)  the potential effects of developing a tiered
3-10     system of rate increases based on level of need;
3-11                 (6)  the expenditures in Texas under the Medicaid
3-12     program and the child health plan program, compared to comparable
3-13     national averages and the averages of the top 15 industrial states
3-14     as ranked by the United States Department of Commerce Bureau of
3-15     Economic Analysis, based on gross state product; and
3-16                 (7)  any other significant factors relating to
3-17     rate-setting methodologies.
3-18           (i)  The task force shall seek technical assistance, if
3-19     needed, from representatives of the federal Health Care Financing
3-20     Administration.
3-21           (j)  The task force shall deliver the report required under
3-22     Subsection (g) to the commissioner and to the legislature.
3-23           (k)  The task force shall:
3-24                 (1)  continue to monitor the information evaluated in
3-25     the report required under Subsection (g) and any changes made in
3-26     the rate-setting methodologies for the Medicaid program and the
 4-1     child health plan program; and
 4-2                 (2)  submit another report with any additional
 4-3     recommendations to the commissioner and the legislature not later
 4-4     than December 1, 2004.
 4-5           (l)  This section expires September 1, 2005.
 4-6           SECTION 2.  This Act takes effect September 1, 2001.
 4-7                          COMMITTEE AMENDMENT NO. 1
 4-8           Amend S.B. 1299 as follows:
 4-9           (1)  On page 2, line 8, strike "." and replace with ", and"
4-10           (2)  On page 2, line 8, insert "(5)  representatives of one
4-11     or more health maintenance organizations that arrange health care
4-12     services for members in Medicaid managed care or the child health
4-13     plan program or both, so long as experience in both Medicaid
4-14     managed care and the child health plan program is represented on
4-15     the task force." and (6) one or more public representative.
4-16     and renumber thereafter.
4-17                                                                 Coleman