By Lucio                                              S.B. No. 1299
         77R5297 SGA-D                           
                                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)  "Task force" means the task force on rate-setting
1-15     methodologies for the Medicaid and child health plan programs
1-16     appointed by the commissioner under this section.
1-17           (b)  The commissioner shall appoint a task force to examine
1-18     and evaluate rate-setting methodologies for the Medicaid program
1-19     and the child health plan program.
1-20           (c)  The commissioner shall appoint 11 members to serve on
1-21     the task force.  The task force shall be composed of:
1-22                 (1)  representatives of the Texas Department of Health
1-23     who are involved in the administration of the Medicaid program or
1-24     the child health plan program;
 2-1                 (2)  health economists active in the area of public
 2-2     health research who are associated with an academic institution;
 2-3                 (3)  public health professionals, including at least
 2-4     one epidemiologist; and
 2-5                 (4)  a representative of the Texas Hospital
 2-6     Association.
 2-7           (d)  A member of the task force may not receive compensation,
 2-8     but is entitled to reimbursement  of travel expenses incurred by
 2-9     the member while conducting the business of the task force as
2-10     provided by the General Appropriations Act.
2-11           (e)  The commission shall provide administrative support and
2-12     resources to the task force as necessary for the task force to
2-13     perform the duties under this section.
2-14           (f)  The task force is not subject to Chapter 2110,
2-15     Government Code.
2-16           (g)  The task force shall perform the research necessary to
2-17     evaluate the rate-setting methodologies for the Medicaid program
2-18     and the child health plan program and, not later than December 1,
2-19     2002, produce a report based on the results of that evaluation.
2-20     The report must include recommendations of the task force on ways
2-21     to improve the rate-setting methodologies.
2-22           (h)  The task force shall, in preparing the report required
2-23     under Subsection (g), examine relevant information including:
2-24                 (1)  the incidence and prevalence of disease in
2-25     comparison to the utilization of services;
2-26                 (2)  the number of physicians participating in the
2-27     Medicaid program and the child health plan program who are
 3-1     providing services in the various geographic areas of the state;
 3-2                 (3)  the number of clients under the Medicaid program
 3-3     and the child health plan program;
 3-4                 (4)  the potential effects of developing incentive
 3-5     programs such as rate increases targeted to encourage health
 3-6     providers to relocate or remain in underserved areas;
 3-7                 (5)  the potential effects of developing a tiered
 3-8     system of rate increases based on level of need; and
 3-9                 (6)  any other significant factors relating to
3-10     rate-setting methodologies.
3-11           (i)  The task force shall seek technical assistance if needed
3-12     from representatives of the federal Health Care Financing
3-13     Administration.
3-14           (j)  The task force shall deliver the report required under
3-15     Subsection (g) to the commissioner and to the legislature.
3-16           (k)  The task force shall:
3-17                 (1)  continue to monitor the information evaluated in
3-18     the report required under Subsection (g) and any changes made in
3-19     the rate-setting methodologies for the Medicaid program and the
3-20     child health plan program; and
3-21                 (2)  submit another report with any additional
3-22     recommendations to the commissioner and the legislature not later
3-23     than December 1, 2004.
3-24           (l)  This section expires September 1, 2005.
3-25           SECTION 2. This Act takes effect September 1, 2001.