84R25644 JSL-F
 
  By: Klick, et al. H.B. No. 3917
 
  Substitute the following for H.B. No. 3917:
 
  By:  Raymond C.S.H.B. No. 3917
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the recoupment of payments on certain provider claims
  made under the Medicaid program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 32, Human Resources Code,
  is amended by adding Sections 32.0631 and 32.0632 to read as
  follows:
         Sec. 32.0631.  POLICIES RELATED TO RECOUPMENT OF PAYMENTS.
  (a)  Notwithstanding any other law the commission shall, subject to
  Subsection (b), develop and implement policies to prevent
  recoupment of an improper payment that was made to a provider for a
  claim for medical services made under the medical assistance
  program if the provider:
               (1)  actually provided a medical service reimbursable
  under the medical assistance program; and
               (2)  submitted a clean claim as required under the
  medical assistance program.
         (b)  The policies developed under Subsection (a) must:
               (1)  allow the recoupment of an improper payment in the
  case of fraud or abuse; and
               (2)  require that when recoupment is allowed, the
  amount of a recouped payment may be no greater than the difference
  between the payment amount made to the provider that is subject to
  recoupment and the reimbursement rate in effect on the date the
  service was provided.
         (c)  To reduce the incidence of improper payments under the
  medical assistance program, the commission shall develop and
  implement methods to improve communication between:
               (1)  the commission;
               (2)  providers under the program;
               (3)  entities with which the commission contracts to
  administer claims under the program; and
               (4)  managed care organizations with which the
  commission contracts to provide medical services to recipients
  under the program.
         (d)  The methods to improve communication under Subsection
  (c) must include requirements to provide necessary information to a
  provider regarding:
               (1)  how, and to whom, the provider must submit a clean
  claim; and
               (2)  how the provider may file a complaint with the
  commission regarding a payment dispute, including a complaint that
  may be filed after the provider has exhausted all rights to appeal. 
         Sec. 32.0632.  PROCESSES AND IMPROVEMENTS RELATED TO
  OVERPAYMENT OF CLAIMS. (a) The commission shall conduct separate
  studies to:
               (1)  evaluate the feasibility of implementing a process
  that allows an entity with which the commission contracts to
  administer claims under the medical assistance program, or a
  managed care organization with which the commission contracts to
  provide services to recipients under the medical assistance
  program, that makes an improper payment on a claim that is subject
  to Section 32.0631, to have a right of subrogation against another
  entity, including a managed care organization, that is or would
  have been responsible for payment of the claim had the claim been
  properly filed with that entity; and
               (2)  identify improvements that should be made to
  eligibility determination processes and other administrative
  procedures in order to reduce the incidence of retroactive
  disenrollment from the medical assistance program that can result
  in improper payments.
         (b)  If, as a result of each study conducted under this
  section, the commission determines that implementation of the
  studied process or improvements, as applicable, would be feasible
  and cost-effective to implement, the commission shall,
  notwithstanding any other law, implement the process or
  improvements. If the commission implements the process or
  improvements, the commission shall modify contracts with an entity
  with which the commission contracts to administer claims and
  managed care organizations to the extent possible and as necessary
  for that implementation.
         (c)  Not later than December 1, 2016, the commission shall
  submit a report to each standing committee of the senate and house
  of representatives having primary jurisdiction over the medical
  assistance program detailing the results of each study  conducted
  under this section and, if the commission implemented the
  applicable process or improvements in accordance with Subsection
  (b), an analysis of the effectiveness of the implementation in
  reducing overpayments. This subsection expires September 1, 2017.
         SECTION 2.  Section 32.0631, Human Resources Code, as added
  by this Act, applies only to improper payments for claims made under
  the medical assistance program under Chapter 32, Human Resources
  Code, that are made on or after the effective date of this Act. A
  claim made before the effective date of this Act is governed by the
  law as it existed immediately before the effective date of this Act,
  and that law is continued in effect for that purpose.
         SECTION 3.  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 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, 2015.