C.S.H.B. 727 78(R)    BILL ANALYSIS


C.S.H.B. 727
By: Delisi
State Health Care Expenditures, Select
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, recipients of medical assistance  who have a chronic disease
and who are not eligible to receive services under a  Medicaid managed
care plan do not have adequate assistance to monitor and manage their
illness.  C.S.H.B. 727 requires the Health and Human Services Commission
to request contract proposals from providers of disease management
programs to provide program services to recipients of medical assistance
who have a chronic health condition and who is not eligible to receive
services under a Medicaid managed care plan.  In addition, this bill
requires the commission to conduct a study to analyze the potential for
state savings through the use of disease management programs for
recipients of medical assistance under Section 32.059, Human Resources
Code.   

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Health and Human Services Commission in SECTION 1  (Section
32.059, Human Resources Code) of this bill. 

ANALYSIS

C.S.H.B 727 amends the Human Resources Code by adding Section 32.059 to
require the Health and Human Services Commission (HHSC) to request
contract proposals for from providers of disease management programs to
provide program services to recipients of medical assistance who have a
chronic health condition, such as heart disease, diabetes, respiratory
illness, end-stage renal disease, HIV infection, or AIDS, that the
department determines is a disease condition that needs management and are
not eligible to receive those services under a Medicaid managed care plan.
In addition, this bill gives HHSC the authority to contract with a public
or private entity to write the requests for proposals, determine how
savings will be measured, identify populations that need disease
management, and develop appropriate contracts.  

C.S.H.B 727 grants HHSC the authority to prescribe the minimum
requirements that disease management providers must meet to be eligible to
receive a contract, and requires that any contract awarded to a disease
management provider must include a written guarantee of savings to the
state. In addition the disease management provider is required to use
disease management approaches that are based on evidence based supported
models, minimum standards of care and clinical outcomes, and ensure that a
patients primary care or specialty physician is involved in the patients
disease management program. 
  
Finally, C.S.H.B 727 requires that the Health and Human Services
Commission conduct a study to analyze the potential state savings through
the implementation and use of disease management programs for recipients
of medical assistance.  Specifically, the HHSC must identify the diseases
and chronic health conditions that result in the highest medical
assistance expenditures in the state, as well as, show the greatest
potential for state savings on implementation of disease management
programs.  The commission is directed to consider the results of this
study when requesting contract proposals under Section 32.059, Human
Resources Code.   

EFFECTIVE DATE

On passage, or  if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 
 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B 727 removes the requirement that HHSC  request proposals to
provide disease management services for pregnant women and children
residing in the Rio Grande Valley who are recipients of medical
assistance, receive treatment for asthma-related health conditions and are
not eligible to receive those services under a Medicaid managed care plan.

The substitute authorizes HHSC to contract with a public or private entity
to write the requests for proposals, determine how savings will be
measured, identify populations that need disease management, and develop
appropriate contracts.  

In SECTION 1(c) the substitute establishes  minium requirements that the
department must meet for contracting.  

C.S.H.B 727 adds language to require that HHSC report its findings to the
governor, lieutenant governor and speaker of the house of representatives
and the committees of the senate and house of representatives with the
responsibility of oversight of health and human service issues".