78R1389 CBH-D

By:  Davis of Harris                                              H.B. No. 3349



A BILL TO BE ENTITLED

AN ACT

relating to the disproportionate share program.                               
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 32, Human Resources Code, 
is amended by adding Section 32.02805 to read as follows:
	Sec. 32.02805.  REIMBURSEMENTS UNDER THE DISPROPORTIONATE 
SHARE PROGRAM.  (a)  The department by rule shall prescribe the 
information, including information relating to the provision of 
services, that a facility must report to receive reimbursement 
under the disproportionate share program.  The department may 
provide for an audit of information provided under this subsection.
	(b)  The department shall reimburse state-owned facilities 
under the disproportionate share program at the highest rate 
allowed by federal law.
	SECTION 2.  (a)  Not later than September 1, 2004, the Health 
and Human Services Commission shall revise the formula for 
providing reimbursement under the disproportionate share program.  
In revising the formula, the commission, to the extent possible, 
shall:
		(1)  increase the emphasis on services given to 
uninsured  persons; and     
		(2)  ensure that any reduced reimbursements under the 
disproportionate share program for services for uninsured or rural 
patients made to a hospital that receives enhanced Medicaid 
payments under another federal program, such as the upper payment 
limit program, are offset by payments from that other federal 
program.
	(b)  Not later than December 1, 2004, the Health and Human 
Services Commission shall send a report to the governor, lieutenant 
governor, and speaker of the house of representatives regarding the 
formula revision required by Subsection (a) of this section.
	SECTION 3.  If before implementing any provision of this Act 
a state agency determines that a waiver or authorization from a 
federal agency is necessary for implementing that provision, the 
agency affected by the provision shall request the waiver or 
authorization and may delay implementing that provision until the 
waiver or authorization is granted.
	SECTION 4.  This Act takes effect September 1, 2003.