H.B. 2469 78(R)    BILL ANALYSIS


H.B. 2469
By: Uresti
Human Services
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently,  the Health and Human Services Commission is required to
procure all contracts with a third party administrator or other entity
through a competitive procurement process in compliance with all
applicable federal and state laws or regulations.  The Texas Department of
Human Services (DHS) currently deems eligible approximately half of the
Children's Health Insurance Program (CHIP) participants, taking the
applicants' information and transmitting the data to a private company is
contracted to perform the eligibility and marketing of CHIP. The private
company is currently paid an average of $2.5 million each month for this
service or approximately $30 million per year, according to the state
Medicaid Office. House Bill 2469 removes the requirement that the contract
procurement process be done with a third party administrator or other
entity when contracting under provisions for the child health plan for
low-income children, transferring the responsibilities for eligibility
determination and enrollment to DHS. 

RULEMAKING AUTHORITY

It is the opinion of the author that no additional rulemaking authority is
expressly designated to any state officer, department, agency, or
institution. 

ANALYSIS

House Bill 2469 amends the Health and Safety Code by revising requirements
for the Health and Human Services Commission when contacting under
provisions pertaining to the child health plan for certain low-income
children. 

HB 2469 repeals the following laws: 
Section 62.053 (b), Health and Safety Code; and
Sections 62.055 (a), (b), (c), and (d), Health and Safety Code. 

EFFECTIVE DATE

September 1, 2003.