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78S10680 DLF-D
By: Coleman H.B. No. 120
A BILL TO BE ENTITLED
AN ACT
relating to the eligibility for and benefits provided under the
state child health plan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 62.002(4), Health and Safety Code, as
amended by H.B. 2292, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
(4) "Net [Gross] family income" means the [total]
amount of income established for a family after reduction for
offsets for expenses such as child care and work-related expenses,
in accordance with standards applicable under the Medicaid [without
consideration of any reduction for offsets that may be available to
the family under any other] program.
SECTION 2. Section 62.101(b), Health and Safety Code, as
amended by H.B. 2292, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
(b) The commission shall establish income eligibility
levels consistent with Title XXI, Social Security Act (42 U.S.C.
Section 1397aa et seq.), as amended, and any other applicable law or
regulations, and subject to the availability of appropriated money,
so that a child who is younger than 19 years of age and whose net
[gross] family income is at or below 200 percent of the federal
poverty level is eligible for health benefits coverage under the
program. [In addition, the commission may establish eligibility
standards regarding the amount and types of allowable assets for a
family whose gross family income is above 150 percent of the federal
poverty level.]
SECTION 3. Section 62.102, Health and Safety Code, as
amended by H.B. 2292, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
Sec. 62.102. CONTINUOUS COVERAGE. [(a)] The commission
shall provide that an individual who is determined to be eligible
for coverage under the child health plan remains eligible for those
benefits until the earlier of:
(1) the end of a period, not to exceed 12 months,
following the date of the eligibility determination; or
(2) the individual's 19th birthday.
[(b) The period of continuous eligibility may be
established at an interval of 6 months beginning immediately upon
passage of this Act and ending September 1, 2005, at which time an
interval of 12 months of continuous eligibility will be
re-established.]
SECTION 4. Section 62.151(b), Health and Safety Code, as
amended by H.B. 2292, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
(b) In developing the covered benefits, the commission
shall consider the health care needs of healthy children and
children with special health care needs. The child health plan must
provide at least the covered benefits described by the recommended
benefits package described for a state-designed child health plan
by the Texas House of Representatives Committee on Public Health
"CHIP" Interim Report to the Seventy-Sixth Texas Legislature dated
December 1998 and the Senate Interim Committee on Children's Health
Insurance Report to the Seventy-Sixth Texas Legislature dated
December 1, 1998. The child health plan must include at least the
covered benefits provided under the plan on June 1, 2003.
SECTION 5. Section 62.153(b), Health and Safety Code, as
amended by H.B. No. 2292, Acts of the 78th Legislature, Regular
Session, 2003, is amended to read as follows:
(b) Cost-sharing [Subject to Subsection (d), cost-sharing]
provisions adopted under this section shall ensure that families
with higher levels of income are required to pay progressively
higher percentages of the cost of the plan.
SECTION 6. Sections 62.154(a) and (d), Health and Safety
Code, as amended by H.B. 2292, Acts of the 78th Legislature,
Regular Session, 2003, are amended to read as follows:
(a) To the extent permitted under Title XXI of the Social
Security Act (42 U.S.C. Section 1397aa et seq.), as amended, and any
other applicable law or regulations, the child health plan must
include a waiting period and [. The child health plan] may include
copayments and other provisions intended to discourage:
(1) employers and other persons from electing to
discontinue offering coverage for children under employee or other
group health benefit plans; and
(2) individuals with access to adequate health benefit
plan coverage, other than coverage under the child health plan,
from electing not to obtain or to discontinue that coverage for a
child.
(d) The waiting period required by Subsection (a) must:
(1) extend for a period of 90 days after[:
[(1)] the last date on [first day of the month in]
which the applicant was covered under a health benefits plan; and
(2) apply to a child who was covered by a health
benefits plan at any time during the 90 days before the date of
application for coverage under the child health plan [is enrolled
under the child health plan, if the date of enrollment is on or
before the 15th day of the month; or
[(2) the first day of the month after which the
applicant is enrolled under the child health plan, if the date of
enrollment is after the 15th day of the month].
SECTION 7. Sections 62.155(c) and (d), Health and Safety
Code, as amended by H.B. No. 2292, Acts of the 78th Legislature,
Regular Session, 2003, are amended to read as follows:
(c) In selecting a health plan provider, the commission:
(1) may give preference to a person who provides
similar coverage under the Medicaid program; and
(2) shall provide for a choice of at least two health
plan providers in each metropolitan [service] area.
(d) The commissioner may authorize an exception to
Subsection (c)(2) if there is only one acceptable applicant to
become a health plan provider in the metropolitan [service] area.
SECTION 8. Section 531.072(a), Government Code, as added
by H.B. No. 2292, Acts of the 78th Legislature, Regular Session,
2003, is amended to read as follows:
(a) In a manner that complies with applicable state and
federal law, the commission shall adopt preferred drug lists for
the Medicaid vendor drug program [and for prescription drugs
purchased through the child health plan program]. The commission
may adopt preferred drug lists for community mental health centers,
state mental health hospitals, and any other state program
administered by the commission or a state health and human services
agency. The commission may not adopt preferred drug lists
applicable to the state child health plan program.
SECTION 9. Section 531.073, Government Code, as added by
H.B. No. 2292, Acts of the 78th Legislature, Regular Session, 2003,
is amended by amending Subsections (a), (c), and (d) and adding
Subsection (g) to read as follows:
(a) The commission, in its rules and standards governing the
Medicaid vendor drug program [and the child health plan program],
shall require prior authorization for the reimbursement of a drug
that is not included in the appropriate preferred drug list adopted
under Section 531.072, except for any drug exempted from prior
authorization requirements by federal law. Subject to Subsection
(g), the [The] commission may require prior authorization for the
reimbursement of a drug provided through any other state program
administered by the commission or a state health and human services
agency, including a community mental health center and a state
mental health hospital if the commission adopts preferred drug
lists under Section 531.072 that apply to those facilities and the
drug is not included in the appropriate list. The commission shall
require that the prior authorization be obtained by the prescribing
physician or prescribing practitioner.
(c) The commission shall ensure that a prescription drug
prescribed before implementation of a prior authorization
requirement for that drug for a recipient under [the child health
plan program,] the Medicaid program[,] or another state program
administered by the commission or a health and human services
agency or for a person who becomes eligible under [the child health
plan program,] the Medicaid program[,] or another state program
administered by the commission or a health and human services
agency is not subject to any requirement for prior authorization
under this section unless the recipient has exhausted all the
prescription, including any authorized refills, or a period
prescribed by the commission has expired, whichever occurs first.
(d) The commission shall implement procedures to ensure
that a recipient under [the child health plan program,] the
Medicaid program[,] or another state program administered by the
commission or a person who becomes eligible under [the child health
plan program,] the Medicaid program[,] or another state program
administered by the commission or a health and human services
agency receives continuity of care in relation to certain
prescriptions identified by the commission.
(g) The prior authorization requirements imposed by this
section do not apply to the state child health plan program.
SECTION 10. Section 531.074(j), Government Code, as added
by H.B. No. 2292, Acts of the 78th Legislature, Regular Session,
2003, is amended to read as follows:
(j) To the extent feasible, the committee shall review all
drug classes included in the preferred drug lists adopted under
Section 531.072 at least once every 12 months and may recommend
inclusions to and exclusions from the lists to ensure that the lists
provide for cost-effective medically appropriate drug therapies
for Medicaid recipients[, children receiving health benefits
coverage under the child health plan program,] and any other
affected individuals.
SECTION 11. The following laws are repealed:
(1) Section 62.151(f), Health and Safety Code, as
added by H.B. No. 2292, Acts of the 78th Legislature, Regular
Session, 2003; and
(2) Section 62.153(d), Health and Safety Code, as
added by H.B. No. 2292, Acts of the 78th Legislature, Regular
Session, 2003.
SECTION 12. In addition to the appropriation made under
Goal C of the appropriations to the Health and Human Services
Commission under H.B. No. 1, Acts of the 78th Legislature, Regular
Session, 2003, for the fiscal biennium beginning September 1, 2003,
the commission is appropriated $200 million from the general
revenue fund to provide benefits under the state child health plan
program in a manner comparable to the manner in which the benefits
were provided under that program during the preceding fiscal
biennium, in accordance with this Act.
SECTION 13. This Act takes effect September 1, 2003, if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for effect on that
date, this Act takes effect November 1, 2003.