1-1 By: Lucio, Shapleigh S.B. No. 1299 1-2 (In the Senate - Filed March 8, 2001; March 12, 2001, read 1-3 first time and referred to Committee on Health and Human Services; 1-4 April 17, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 6, Nays 0; April 17, 2001, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1299 By: Moncrief 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation and duties of a task force on rate-setting 1-11 methodologies for the Medicaid and state child health plan 1-12 programs. 1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. Subchapter B, Chapter 531, Government Code, is 1-15 amended by adding Section 531.0221 to read as follows: 1-16 Sec. 531.0221. TASK FORCE ON RATE-SETTING METHODOLOGIES FOR 1-17 MEDICAID PROGRAM AND STATE CHILD HEALTH PLAN PROGRAM. (a) In this 1-18 section: 1-19 (1) "Child health plan program" means the state child 1-20 health plan program authorized by Chapter 62, Health and Safety 1-21 Code. 1-22 (2) "Health care provider" means a hospital, long-term 1-23 care facility, physician, dentist, emergency medical services 1-24 provider, or other provider of services eligible for reimbursement 1-25 under the Medicaid or child health plan program. 1-26 (3) "Task force" means the task force on rate-setting 1-27 methodologies for the Medicaid and child health plan programs 1-28 appointed by the commissioner under this section. 1-29 (b) The commissioner shall appoint a task force to examine 1-30 and evaluate rate-setting methodologies for the Medicaid program 1-31 and the child health plan program. 1-32 (c) The commissioner shall appoint 11 members to serve on 1-33 the task force. The task force shall be composed of: 1-34 (1) representatives of the Texas Department of Health 1-35 who are involved in the administration of the Medicaid program or 1-36 the child health plan program; 1-37 (2) health economists active in the area of public 1-38 health research who are associated with an academic institution; 1-39 (3) public health professionals, including at least 1-40 one epidemiologist; and 1-41 (4) health care providers or their representatives. 1-42 (d) A member of the task force may not receive compensation 1-43 but is entitled to reimbursement of travel expenses incurred by 1-44 the member while conducting the business of the task force as 1-45 provided by the General Appropriations Act. 1-46 (e) The commission shall provide administrative support and 1-47 resources to the task force as necessary for the task force to 1-48 perform the duties under this section. 1-49 (f) The task force is not subject to Chapter 2110. 1-50 (g) The task force shall perform the research necessary to 1-51 evaluate the rate-setting methodologies for the Medicaid program 1-52 and the child health plan program and, not later than December 1, 1-53 2002, produce a report based on the results of that evaluation. 1-54 The report must include recommendations of the task force on ways 1-55 to improve the rate-setting methodologies. 1-56 (h) The task force shall, in preparing the report required 1-57 under Subsection (g), examine relevant information including: 1-58 (1) the incidence and prevalence of disease in 1-59 comparison to the utilization of services; 1-60 (2) the number of health care providers participating 1-61 in the Medicaid program and the child health plan program who are 1-62 providing services in the various geographic areas of the state; 1-63 (3) the number of people eligible for the Medicaid 1-64 program and the child health plan program; 2-1 (4) the potential effects of developing incentive 2-2 programs such as rate increases targeted to encourage health care 2-3 providers to relocate or remain in underserved areas; 2-4 (5) the potential effects of developing a tiered 2-5 system of rate increases based on level of need; 2-6 (6) the expenditures in Texas under the Medicaid 2-7 program and the child health plan program, compared to comparable 2-8 national averages and the averages of the top 15 industrial states 2-9 as ranked by the United States Department of Commerce Bureau of 2-10 Economic Analysis, based on gross state product; and 2-11 (7) any other significant factors relating to 2-12 rate-setting methodologies. 2-13 (i) The task force shall seek technical assistance, if 2-14 needed, from representatives of the federal Health Care Financing 2-15 Administration. 2-16 (j) The task force shall deliver the report required under 2-17 Subsection (g) to the commissioner and to the legislature. 2-18 (k) The task force shall: 2-19 (1) continue to monitor the information evaluated in 2-20 the report required under Subsection (g) and any changes made in 2-21 the rate-setting methodologies for the Medicaid program and the 2-22 child health plan program; and 2-23 (2) submit another report with any additional 2-24 recommendations to the commissioner and the legislature not later 2-25 than December 1, 2004. 2-26 (l) This section expires September 1, 2005. 2-27 SECTION 2. This Act takes effect September 1, 2001. 2-28 * * * * *