81R32461 KLA-F
 
  By: Nelson S.B. No. 288
 
  Substitute the following for S.B. No. 288:
 
  By:  Coleman C.S.S.B. No. 288
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to improving the quality of health care services provided
  under certain state programs through certain initiatives,
  including payment strategies and medication history review
  requirements.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 531, Government Code, is
  amended by adding Sections 531.0961 and 531.0995 to read as
  follows:
         Sec. 531.0961.  MEDICAID PROVIDER REVIEW OF ELECTRONIC
  MEDICATION HISTORY. The commission, as part of a quality-based
  payment initiatives pilot program developed under Subchapter W, may
  require a health care provider providing acute care services under
  the state Medicaid program to review, before providing an acute
  care service or procedure to a Medicaid recipient, the recipient's
  prescription and nonprescription medication history included in:
               (1)  a health passport provided to the recipient under
  Section 266.006, Family Code, or any other law; or
               (2)  any other electronic health records maintained
  under the program with respect to the recipient and to which the
  provider has access.
         Sec. 531.0995.  HEALTH CARE QUALITY ADVISORY COMMITTEE.
  (a)  The commission shall establish the Health Care Quality
  Advisory Committee to assist the commission as specified by
  Subsection (d) with defining best practices and quality performance
  with respect to health care services and setting standards for
  quality performance by health care providers and facilities for
  purposes of programs administered by the commission or a health and
  human services agency.
         (b)  The executive commissioner shall appoint the members of
  the advisory committee. The committee must consist of health care
  providers, representatives of health care facilities, and other
  stakeholders interested in health care services provided in this
  state.  At least one member must be a physician who has clinical
  practice expertise, and at least one member must be a member of the
  advisory panel established as provided by Section 98.051, Health
  and Safety Code, who meets the qualifications prescribed by Section
  98.052(a)(4), Health and Safety Code.
         (c)  The executive commissioner shall appoint the presiding
  officer of the advisory committee.
         (d)  The advisory committee shall advise the commission on:
               (1)  quality of care standards, evidence-based
  protocols, and measurable goals for quality-based payment
  initiatives pilot programs implemented under Subchapter W; and
               (2)  any other quality of care standards,
  evidence-based protocols, measurable goals, or other related
  issues with respect to which a law or the executive commissioner
  specifies that the committee shall advise.
         SECTION 2.  Chapter 531, Government Code, is amended by
  adding Subchapter W to read as follows:
  SUBCHAPTER W.  QUALITY-BASED PAYMENT INITIATIVES PILOT PROGRAMS FOR
  PROVISION OF HEALTH CARE SERVICES
         Sec. 531.951.  DEFINITIONS.  In this subchapter:
               (1)  "Pay-for-performance payment system" means a
  system for compensating a health care provider or facility for
  arranging for or providing health care services to child health
  plan program enrollees or Medicaid recipients, or both, that is
  based on the provider or facility meeting or exceeding certain
  defined performance measures.  The compensation system may include
  sharing realized cost savings with the provider or facility.
               (2)  "Pilot program" means a quality-based payment
  initiatives pilot program established under this subchapter.
         Sec. 531.952.  PILOT PROGRAM PROPOSALS; DETERMINATION OF
  BENEFIT TO STATE. (a)  Health care providers and facilities may
  submit proposals to the commission for the implementation through
  pilot programs of quality-based payment initiatives that provide
  incentives to the providers and facilities, as applicable, to
  develop health care interventions for child health plan program
  enrollees or Medicaid recipients, or both, that are cost-effective
  to this state and will improve the quality of health care provided
  to the enrollees or recipients.
         (b)  The commission shall determine whether it is feasible
  and cost-effective to implement one or more of the proposed pilot
  programs. In addition, the commission shall examine alternative
  payment methodologies used in the Medicare program and consider
  whether implementing one or more of the methodologies, modified as
  necessary to account for programmatic differences, through a pilot
  program under this subchapter would achieve cost savings in the
  Medicaid program while ensuring the use of best practices.
         Sec. 531.953.  PURPOSE AND IMPLEMENTATION OF PILOT PROGRAMS.
  (a)  If the commission determines under Section 531.952 that
  implementation of one or more quality-based payment initiatives
  pilot programs is feasible and cost-effective for this state, the
  commission shall establish one or more programs as provided by this
  subchapter to test pay-for-performance payment system alternatives
  to traditional fee-for-service or other payments made to health
  care providers or facilities participating in the child health plan
  or Medicaid program, as applicable, that are based on best
  practices, outcomes, and efficiency, but ensure high-quality,
  effective health care services.
         (b)  The commission shall administer any pilot program
  established under this subchapter.  The executive commissioner may
  adopt rules, plans, and procedures and enter into contracts and
  other agreements as the executive commissioner considers
  appropriate and necessary to administer this subchapter.
         (c)  The commission may limit a pilot program to:
               (1)  one or more regions in this state;
               (2)  one or more organized networks of health care
  facilities and providers; or
               (3)  specified types of services provided under the
  child health plan or Medicaid program, or specified types of
  enrollees or recipients under those programs.
         (d)  A pilot program implemented under this subchapter must
  be operated for at least one state fiscal year.
         Sec. 531.954.  STANDARDS; PROTOCOLS. (a)  In consultation
  with the Health Care Quality Advisory Committee established under
  Section 531.0995, the executive commissioner shall approve quality
  of care standards, evidence-based protocols, and measurable goals
  for a pilot program to ensure high-quality and effective health
  care services.
         (b)  In addition to the standards approved under Subsection
  (a), the executive commissioner may approve efficiency performance
  standards that may include the sharing of realized cost savings
  with health care providers and facilities that provide health care
  services that exceed the efficiency performance standards.
         Sec. 531.955.  QUALITY-BASED PAYMENT INITIATIVES. (a)  The
  executive commissioner may contract with appropriate entities,
  including qualified actuaries, to assist in determining
  appropriate payment rates for a pilot program implemented under
  this subchapter.
         (b)  The executive commissioner may increase a payment rate,
  including a capitation rate, adopted under this section as
  necessary to adjust the rate for inflation.
         (c)  The executive commissioner shall ensure that services
  provided to a child health plan program enrollee or Medicaid
  recipient, as applicable, meet the quality of care standards
  required under this subchapter and are at least equivalent to the
  services provided under the child health plan or Medicaid program,
  as applicable, for which the enrollee or recipient is eligible.
         Sec. 531.956.  TERMINATION OF PILOT PROGRAM; EXPIRATION OF
  SUBCHAPTER. The pilot program terminates and this subchapter
  expires September 2, 2013.
         SECTION 3.  The executive commissioner of the Health and
  Human Services Commission shall appoint the members of the Health
  Care Quality Advisory Committee not later than November 1, 2009.
         SECTION 4.  Not later than November 1, 2012, the Health and
  Human Services Commission shall present a report to the governor,
  the lieutenant governor, the speaker of the house of
  representatives, and the members of each legislative committee
  having jurisdiction over the child health plan and Medicaid
  programs. For each pilot program implemented under Subchapter W,
  Chapter 531, Government Code, as added by this Act, the report must:
               (1)  describe the operation of the pilot program;
               (2)  analyze the quality of health care provided to
  patients under the pilot program;
               (3)  compare the per-patient cost under the pilot
  program to the per-patient cost of the traditional fee-for-service
  or other payments made under the child health plan and Medicaid
  programs; and
               (4)  make recommendations regarding the continuation
  or expansion of the pilot program.
         SECTION 5.  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 6.  This Act takes effect September 1, 2009.