| TO: | Honorable David Dewhurst, Lieutenant Governor, Senate |
| FROM: | Ursula Parks, Director, Legislative Budget Board |
| IN RE: | SB1623 by Hinojosa (Relating to the creation and operations of health care funding districts in certain counties located on the Texas-Mexico border.), As Passed 2nd House |
The bill would amend the Health and Safety Code Chapter 288 relating to hospital districts in certain counties located on the Texas-Mexico border. The bill allows such hospital districts to establish a local provider participation fund consisting of mandatory payment revenue, refunds from the Health and Human Services Commission (HHSC) of federally unmatched intergovernmental transfers originally intended to pay the nonfederal share of Medicaid supplemental payments, and the earnings of the fund. The bill authorizes hospital districts to set mandatory payment amounts for each paying hospital in the district at an amount that when added to the mandatory payments of all other paying hospitals in the district does not exceed six percent of aggregate net patient revenue. The bill allows money in the fund to be used to provide the nonfederal share for Medicaid supplemental payments.
The bill specifies that if a state agency determines that a waiver from a federal agency is necessary, the agency shall request the waiver and delay implementation until such waiver is received. The bill would repeal numerous existing provisions of the Health and Safety Code Chapter 288 and would take affect September 1, 2013.
The nonfederal share of Texas Medicaid supplemental payments is provided largely by local public funds provided to HHSC by intergovernmental transfer. The bill's amendments do not contain any implications for state General Revenue funds. It is not anticipated that the bill will result in a fiscal impact to HHSC.
| Source Agencies: | 529 Health and Human Services Commission
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| LBB Staff: | UP, CL, MH, TP
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