84R23399 LED-F
 
  By: Raymond, Klick H.B. No. 3523
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to improving the delivery and quality of Medicaid acute
  care services and long-term care services and supports.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 533.00251(g), Government Code, is
  amended to read as follows:
         (g)  Subsection [Subsections (c),] (d)[, (e), and (f)] and
  this subsection expire September 1, 2019.
         SECTION 2.  Section 534.053, Government Code, is amended by
  adding Subsection (e-1) and amending Subsection (g) to read as
  follows:
         (e-1)  The advisory committee may establish work groups that
  meet at other times for purposes of studying and making
  recommendations on issues the committee considers appropriate.
         (g)  On January 1, 2026 [2024]:
               (1)  the advisory committee is abolished; and
               (2)  this section expires.
         SECTION 3.  Section 534.054, Government Code, as amended by
  S.B. No. 219, Acts of the 84th Legislature, Regular Session, 2015,
  is amended to read as follows:
         Sec. 534.054.  ANNUAL REPORT ON IMPLEMENTATION. (a)  Not
  later than September 30 of each year, the commission, in
  consultation and collaboration with the advisory committee, shall
  prepare and submit a report to the legislature that must include 
  [regarding]:
               (1)  an assessment of the implementation of the system
  required by this chapter, including appropriate information
  regarding the provision of acute care services and long-term
  services and supports to individuals with an intellectual or
  developmental disability under Medicaid as described by this
  chapter; [and]
               (2)  recommendations regarding implementation of and
  improvements to the system redesign, including recommendations
  regarding appropriate statutory changes to facilitate the
  implementation; and
               (3)  an assessment of the effect of the system on the
  following:
                     (A)  access to long-term services and supports;
                     (B)  the quality of acute care services and
  long-term services and supports;
                     (C)  meaningful outcomes for Medicaid recipients
  using person-centered planning, individualized budgeting, and
  self-determination, including a person's inclusion in the
  community;
                     (D)  the integration of service coordination of
  acute care services and long-term services and supports;
                     (E)  the placement of individuals in housing that
  is the least restrictive setting appropriate to an individual's
  needs;
                     (F)  employment assistance and customized,
  integrated, competitive employment options; and
                     (G)  the number and types of fair hearing and
  appeals processes in accordance with applicable federal law.
         (b)  This section expires January 1, 2026 [2024].
         SECTION 4.  Section 534.104, Government Code, is amended by
  amending Subsection (a), as amended by S.B. No. 219, Acts of the
  84th Legislature, Regular Session, 2015, amending Subsections (c),
  (d), (e), and (g), and adding Subsection (h) to read as follows:
         (a)  The department, in consultation and collaboration with
  the advisory committee, shall identify private services providers
  that are good candidates to develop a service delivery model
  involving a managed care strategy based on capitation and to test
  the model in the provision of long-term services and supports under
  Medicaid to individuals with an intellectual or developmental
  disability through a pilot program established under this
  subchapter.
         (c)  A managed care strategy based on capitation developed
  for implementation through a pilot program under this subchapter
  must be designed to:
               (1)  increase access to long-term services and
  supports;
               (2)  improve quality of acute care services and
  long-term services and supports;
               (3)  promote meaningful outcomes by using
  person-centered planning, individualized budgeting, and
  self-determination, and promote community inclusion [and
  customized, integrated, competitive employment];
               (4)  promote integrated service coordination of acute
  care services and long-term services and supports;
               (5)  promote [efficiency and the best use of funding;
               [(6)  promote] the placement of an individual in
  housing that is the least restrictive setting appropriate to the
  individual's needs;
               (6) [(7)]  promote employment assistance and
  customized, integrated, and competitive [supported] employment;
               (7) [(8)]  provide fair hearing and appeals processes
  in accordance with applicable federal law; and
               (8) [(9)]  promote sufficient flexibility to achieve
  the goals listed in this section through the pilot program.
         (d)  The department, in consultation and collaboration with
  the advisory committee, shall evaluate each submitted managed care
  strategy proposal and determine whether:
               (1)  the proposed strategy satisfies the requirements
  of this section; and
               (2)  the private services provider that submitted the
  proposal has a demonstrated ability to provide the long-term
  services and supports appropriate to the individuals who will
  receive services through the pilot program based on the proposed
  strategy, if implemented.
         (e)  Based on the evaluation performed under Subsection (d),
  the department may select as pilot program service providers one or
  more private services providers with whom the commission will
  contract.
         (g)  The department, in consultation and collaboration with
  the advisory committee, shall analyze information provided by the
  pilot program service providers and any information collected by
  the department during the operation of the pilot programs for
  purposes of making a recommendation about a system of programs and
  services for implementation through future state legislation or
  rules.
         (h)  The analysis under Subsection (g) must include an
  assessment of the effect of the managed care strategies implemented
  in the pilot programs on:
               (1)  access to long-term services and supports;
               (2)  the quality of acute care services and long-term
  services and supports;
               (3)  meaningful outcomes using person-centered
  planning, individualized budgeting, and self-determination,
  including a person's inclusion in the community;
               (4)  the integration of service coordination of acute
  care services and long-term services and supports;
               (5)  the placement of individuals in housing that is
  the least restrictive setting appropriate to an individual's needs;
               (6)  employment assistance and customized, integrated,
  competitive employment options; and
               (7)  the number and types of fair hearing and appeals
  processes in accordance with applicable federal law.
         SECTION 5.  Sections 534.106(a) and (b), Government Code,
  are amended to read as follows:
         (a)  The commission and the department shall implement any
  pilot programs established under this subchapter not later than
  September 1, 2017 [2016].
         (b)  A pilot program established under this subchapter may 
  [must] operate for up to [not less than] 24 months. A[, except that
  a] pilot program may cease operation [before the expiration of 24
  months] if the pilot program service provider terminates the
  contract with the commission before the agreed-to termination date.
         SECTION 6.  Section 534.108(d), Government Code, is amended
  to read as follows:
         (d)  The [On or before December 1, 2016, and December 1,
  2017, the] commission and the department, in consultation and
  collaboration with the advisory committee, shall review and
  evaluate the progress and outcomes of each pilot program
  implemented under this subchapter and submit, as part of the annual
  report to the legislature required by Section 534.054, a report to
  the legislature during the operation of the pilot programs.  Each
  report must include recommendations for program improvement and
  continued implementation.
         SECTION 7.  Section 534.110, Government Code, as amended by
  S.B. No. 219, Acts of the 84th Legislature, Regular Session, 2015,
  is amended to read as follows:
         Sec. 534.110.  TRANSITION BETWEEN PROGRAMS. (a) The
  commission shall ensure that there is a comprehensive plan for
  transitioning the provision of Medicaid benefits between a Medicaid
  waiver program or an ICF-IID program and a pilot program under this
  subchapter to protect continuity of care.
         (b)  The transition plan shall be developed in consultation
  and collaboration with the advisory committee and with stakeholder
  input as described by Section 534.103.
         SECTION 8.  Section 534.151, Government Code, as amended by
  S.B. No. 219, Acts of the 84th Legislature, Regular Session, 2015,
  is amended to read as follows:
         Sec. 534.151.  DELIVERY OF ACUTE CARE SERVICES FOR
  INDIVIDUALS WITH AN INTELLECTUAL OR DEVELOPMENTAL DISABILITY. (a) 
  Subject to Section 533.0025, the commission shall provide acute
  care Medicaid benefits to individuals with an intellectual or
  developmental disability through the STAR + PLUS Medicaid managed
  care program or the most appropriate integrated capitated managed
  care program delivery model and monitor the provision of those
  benefits.
         (b)  The commission and the department, in consultation and
  collaboration with the advisory committee, shall analyze the
  outcomes of providing acute care Medicaid benefits to individuals
  with an intellectual or developmental disability under a model
  specified in Subsection (a). The analysis must:
               (1)  include an assessment of the effects on:
                     (A)  access to and quality of acute care services;
  and
                     (B)  the number and types of fair hearing and
  appeals processes in accordance with applicable federal law;
               (2)  be incorporated into the annual report to the
  legislature required under Section 534.054; and
               (3)  include recommendations for delivery model
  improvements and implementation for consideration by the
  legislature, including recommendations for needed statutory
  changes.
         SECTION 9.  The heading to Section 534.152, Government Code,
  is amended to read as follows:
         Sec. 534.152.  DELIVERY OF CERTAIN OTHER SERVICES UNDER STAR
  + PLUS MEDICAID MANAGED CARE PROGRAM AND BY WAIVER PROGRAM
  PROVIDERS.
         SECTION 10.  Section 534.152, Government Code, is amended by
  adding Subsection (g) to read as follows:
         (g)  The department may contract with providers
  participating in the home and community-based services (HCS) waiver
  program, the Texas home living (TxHmL) waiver program, the
  community living assistance and support services (CLASS) waiver
  program, or the deaf-blind with multiple disabilities (DBMD) waiver
  program for the delivery of basic attendant and habilitation
  services described in Subsection (a) for individuals to which that
  subsection applies. The department has regulatory and oversight
  authority over the providers with which the department contracts
  for the delivery of those services.
         SECTION 11.  Section 534.201, Government Code, is amended by
  amending Subsections (b) and (e), as amended by S.B. No. 219, Acts
  of the 84th Legislature, Regular Session, 2015, amending Subsection
  (d), and adding Subsection (g) to read as follows:
         (b)  On or after [Not later than] September 1, 2018 [2017],
  the commission may [shall] transition the provision of Medicaid
  benefits to individuals to whom this section applies to the STAR +
  PLUS Medicaid managed care program delivery model or the most
  appropriate integrated capitated managed care program delivery
  model, as determined by the commission based on cost-effectiveness
  and the experience of the STAR + PLUS Medicaid managed care program
  in providing basic attendant and habilitation services and of the
  pilot programs established under Subchapter C, subject to
  Subsection (c)(1).
         (d)  In implementing the transition described by Subsection
  (b), the commission, in consultation and collaboration with the
  advisory committee, shall develop a process to receive and evaluate
  input from interested statewide stakeholders [that is in addition
  to the input provided by the advisory committee].
         (e)  The commission, in consultation and collaboration with
  the advisory committee, shall ensure that there is a comprehensive
  plan for transitioning the provision of Medicaid benefits under
  this section that protects the continuity of care provided to
  individuals to whom this section applies.
         (g)  The commission, in consultation and collaboration with
  the advisory committee, shall analyze the outcomes of the
  transition of the long-term services and supports under the Texas
  home living (TxHmL) Medicaid waiver program to a managed care
  program delivery model. The analysis must:
               (1)  include an assessment of the effect of the
  transition on:
                     (A)  access to long-term services and supports;
                     (B)  meaningful outcomes using person-centered
  planning, individualized budgeting, and self-determination,
  including a person's inclusion in the community;
                     (C)  the integration of service coordination of
  acute care services and long-term services and supports;
                     (D)  employment assistance and customized,
  integrated, competitive employment options; and
                     (E)  the number and types of fair hearing and
  appeals processes in accordance with applicable federal law;
               (2)  be incorporated into the annual report to the
  legislature required under Section 534.054; and
               (3)  include recommendations for improvements to the
  transition implementation for consideration by the legislature,
  including recommendations for needed statutory changes.
         SECTION 12.  Section 534.202(b), Government Code, as amended
  by S.B. No. 219, Acts of the 84th Legislature, Regular Session,
  2015, is amended to read as follows:
         (b)  After implementing the transition required by Section
  534.201, if that transition is implemented [but not later than
  September 1, 2020], the commission may, on or after September 1,
  2021, [shall] transition the provision of Medicaid benefits to
  individuals to whom this section applies to the STAR + PLUS Medicaid
  managed care program delivery model or the most appropriate
  integrated capitated managed care program delivery model, as
  determined by the commission based on cost-effectiveness and the
  experience of the transition of Texas home living (TxHmL) waiver
  program recipients to a managed care program delivery model under
  Section 534.201, subject to Subsections (c)(1) and (g).
         SECTION 13.  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 14.  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, 2015.