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                                  * * * * *