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        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | relating to the reimbursement of rural hospitals in the Texas | 
      
        |  | Medicaid program. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Subtitle F, Title 1, Health and Safety Code, | 
      
        |  | Chapter 533, Section 533.002 is amended to read as follows: | 
      
        |  | Sec. 533.002.  PURPOSE.  The commission shall implement the | 
      
        |  | Medicaid managed care program by contracting with managed care | 
      
        |  | organizations in a manner that, to the extent possible: | 
      
        |  | (1)  improves the health of Texans by: | 
      
        |  | (A)  emphasizing prevention; | 
      
        |  | (B)  promoting continuity of care; and | 
      
        |  | (C)  providing a medical home for recipients; | 
      
        |  | (2)  ensures that each recipient receives high quality, | 
      
        |  | comprehensive health care services in the recipient's local | 
      
        |  | community; | 
      
        |  | (3)  encourages the training of and access to primary | 
      
        |  | care physicians and providers; | 
      
        |  | (4)  maximizes cooperation with existing public health | 
      
        |  | entities, including local departments of health; | 
      
        |  | (5)  provides incentives to managed care organizations | 
      
        |  | to improve the quality of health care services for recipients by | 
      
        |  | providing value-added services; [ and] | 
      
        |  | (6)  reduces administrative and other nonfinancial | 
      
        |  | barriers for recipients in obtaining health care services; and | 
      
        |  | (7)  provides for reimbursement to rural hospitals as | 
      
        |  | defined in the Texas Medicaid program on a per individual hospital | 
      
        |  | cost basis using payment methodology established by the commission | 
      
        |  | that assures rural hospitals recover allowable cost incurred to | 
      
        |  | provide services to Medicaid beneficiaries.  The commission may | 
      
        |  | directly reimburse rural hospitals or contract with managed care | 
      
        |  | organizations to process reimbursement payments however contracts | 
      
        |  | associated with managed care organizations must allow for full pass | 
      
        |  | through of allowable cost reimbursement to rural hospitals. | 
      
        |  | SECTION 2.  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, 2017. |