80R14922 KFF-F
 
  By: McReynolds H.B. No. 2256
 
Substitute the following for H.B. No. 2256:
 
  By:  Rose C.S.H.B. No. 2256
 
A BILL TO BE ENTITLED
AN ACT
relating to the requirements for uniform fair hearing rules for
Medicaid services, including services that require prior
authorization.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 531.024, Government Code, is amended to
read as follows:
       Sec. 531.024.  PLANNING AND DELIVERY OF HEALTH AND HUMAN
SERVICES.  (a)  The executive commissioner shall:
             (1)  facilitate and enforce coordinated planning and
delivery of health and human services, including:
                   (A)  compliance with the coordinated strategic
plan;
                   (B)  co-location of services;
                   (C)  integrated intake; and
                   (D)  coordinated referral and case management;
             (2)  develop with the Department of Information
Resources automation standards for computer systems to enable
health and human services agencies, including agencies operating at
a local level, to share pertinent data;
             (3)  establish and enforce uniform regional boundaries
for all health and human services agencies;
             (4)  carry out statewide health and human services
needs surveys and forecasting;
             (5)  perform independent special-outcome evaluations
of health and human services programs and activities;
             (6)  at the request of a governmental entity identified
under Section 531.022(e), assist that entity in implementing a
coordinated plan that may include co-location of services,
integrated intake, and coordinated referral and case management and
is tailored to the needs and priorities of that entity; and
             (7)  promulgate uniform fair hearing rules for all
Medicaid-funded services.
       (b)  The rules promulgated under Subsection (a)(7) must
provide due process to an applicant for Medicaid services and to a
Medicaid recipient who seeks a Medicaid service, including a
service that requires prior authorization. The rules must provide
the protections for applicants and recipients required by 42 C.F.R.
Part 431, Subpart E, including requiring that:
             (1)  the written notice to an individual of the
individual's right to a hearing must:
                   (A)  contain an explanation of the circumstances
under which Medicaid is continued if a hearing is requested; and
                   (B)  be mailed at least 10 days before the date the
individual's Medicaid eligibility or service is scheduled to be
terminated, suspended, or reduced, except as provided by 42 C.F.R.
Section 431.213 or 431.214; and
             (2)  if a hearing is requested before the date a
Medicaid recipient's service, including a service that requires
prior authorization, is scheduled to be terminated, suspended, or
reduced, the agency may not take that proposed action before a
decision is rendered after the hearing unless:
                   (A)  it is determined at the hearing that the sole
issue is one of federal or state law or policy; and
                   (B)  the agency promptly informs the recipient in
writing that services are to be terminated, suspended, or reduced
pending the hearing decision.
       SECTION 2.  If before implementing any provision of this Act
a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of 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 3.  This Act takes effect September 1, 2007.