By: Kolkhorst H.B. No. 3680

A BILL TO BE ENTITLED

AN ACT

relating to the allocation of certain Medicaid supplemental hospital payments by the Health and Human Services Commission.

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 32.0283 to read as follows:

Sec. 32.0283. ALLOCATION OF SUPPLEMENTAL HOSPITAL PAYMENTS. (a) Definitions. In this section,

(1) "Public hospital" means a hospital that is authorized to transfer funds to the state for use as the state share of Medicaid payments under a supplemental hospital payment program, including a hospital described in Section 32.031(e).

(2) "Supplemental hospital payment program" means a program administered by the commission pursuant to state or federal law that authorizes payments of state and federal funds above standard Medicaid payments to eligible hospitals, including, but not limited to:

(A) the disproportionate share hospital program administered pursuant to 42 U.S.C. Section 1396r-4a;

(B) a Medicaid Upper Payment Limit program or its successor; or

(C) a waiver granted by the Secretary of H ealth and Human Services under the Social Security Act, 42 U.S.C. Section 1396, et seq., including the Medicaid Transformation Waiver issued under § 1115 of the Social Security Act, 42 U.S.C. Section 1315.

(b) Out of funds transferred to the state by a public hospital, a county, or other unit of local government for purposes of supplying the state share of a supplemental hospital payment program payment, the commission shall make such payments in the following order:

(1) disproportionate share hospital program payments, which shall be paid to all eligible hospitals before a payment under any other supplemental hospital payment program may be made; and

(2) payments under the Medicaid Upper Payment Limit program or its successor, which shall be paid using Medicaid inpatient days or another reliable indicator of Medicaid utilization established by the commission.

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 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, 2013.