By: Davis of Harris H.B. No. 3231
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to clarification of Section 533.0075, Government Code, and
  validation of certain acts and decisions made by the Health and
  Human Services Commission in construing a contract entered into
  under that section.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  CLARIFICATION OF INTENT OF LEGISLATION.  (a)  In
  1993, Texas began the transition to managed care for certain
  recipients of Medicaid services, with pilot programs in Travis
  County and the tri-county area of Jefferson, Chambers, and
  Galveston counties.  Since that time, Medicaid managed care has
  been implemented in six additional services areas: Bexar, Tarrant,
  Lubbock, Harris, Dallas, El Paso, and Nueces bringing total
  enrollment in Medicaid managed care to more than 2,500,000.
         (b)  In 1999, the Legislature enacted H.B. No. 2896 and H.B.
  No. 2641.  Both bills included identical amendments to Section
  533.0075, Government Code, which was originally enacted in 1997 and
  addressed recipient enrollment in managed care programs.
         (c)  The 1999 amendments added Subdivisions (4), (5), and (6)
  to Section 533.0075, Government Code.  Subdivision (4) required the
  Health and Human Services Commission to develop and implement an
  expedited process for determining eligibility for and enrolling
  pregnant women and newborn infants in managed care plans.  
  Subdivision (5) required the commission to ensure immediate access
  to prenatal services and newborn care for pregnant women and
  newborn infants enrolled in managed care plans.  Subdivision (6)
  required the commission to temporarily assign newborn infants to
  the traditional fee-for-services component of Medicaid for a period
  not to exceed 60 days or the date on which the newborn's eligibility
  determination is completed.
         (d)  The Legislature, in enacting subdivisions (4), (5), and
  (6) of Section 533.0075, understood that the commission had
  enrolled newborn infants in Medicaid managed care plans and
  intended that the commission would continue to enroll newborn
  infants in Medicaid managed care plans.  In particular, the
  Legislature intended that, under the express terms of Subdivision
  (4), the commission would expedite the enrollment of newborn
  infants whose Medicaid eligibility is known at the time of birth
  into managed care plans to ensure access to care and to avoid delays
  in payment for services.  The Legislature has appropriated state
  and federal funds to the commission for the payment of capitated
  rates to managed care organizations that have contracted with the
  commission to provide such coverage to newborn infants.
         (e)  Subdivision (6) of Section 533.0075 was intended to
  address delays in payment that health care providers in Medicaid
  managed care pilot areas experienced at the time of its enactment
  for services provided to a newborn infant who was ultimately
  enrolled in Medicaid but whose Medicaid eligibility was not
  determined at the time of birth.  The Legislature, in enacting
  Subdivision (6), did not intend to nullify or supersede
  Subdivisions (4) and (5) and prohibit enrollment of newborn infants
  in a Medicaid managed care plan.  Rather, the Legislature intended
  to ensure that a newborn whose Medicaid eligibility was not known or
  not determined at birth would receive medically necessary care
  after its birth but before completion of the Medicaid eligibility
  determination process and that providers who perform such care
  receive reimbursement for such services.
         (f)  The Legislature understands that the delays in payment
  that prompted the enactment of Subdivision (6) have largely been
  resolved by more efficient and timely enrollment processes and that
  providers who supply services to newborn infants do not experience
  delays or denials of payment solely because of a delay in Medicaid
  eligibility determination.  Accordingly, the Legislature finds
  that the purposes of Subdivision (6) have been fulfilled and its
  requirements are no longer necessary to ensure appropriate payment
  of providers of services to newborn infants.
         SECTION 2.  CLARIFYING AMENDMENT.  Section 533.0075(6),
  Government Code, is repealed.
         SECTION 3.  VALIDATION OF ACTS OR DECISIONS BY HEALTH AND
  HUMAN SERVICES COMMISSION.  (a)  A governmental act taken or
  decision made by the Health and Human Services Commission, to
  enroll a newborn infant in a managed care organization under the
  terms of a contract for managed care services authorized by Section
  533.0075, Government Code, is conclusively presumed, as of the date
  it occurred, to be valid and to have occurred in accordance with all
  applicable law.
         (b)  This section does not apply to:
               (1)  an act or decision that was void at the time it
  occurred;
               (2)  an act or decision that violates the terms of
  federal law or a federal waiver; or
               (2)  an act or decision that, under a statute of this
  state or the United States, was a misdemeanor or felony at the time
  the act or decision occurred.
         SECTION 4.  This Act takes effect immediately 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 immediate effect, this
  Act takes effect September 1, 2009.