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A BILL TO BE ENTITLED
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AN ACT
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relating to requirements applicable to certain third-party health |
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insurers in relation to Medicaid. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 531.024131(a), Government Code, is |
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amended to read as follows: |
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(a) If cost-effective, the commission may: |
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(1) contract to expand all or part of the billing |
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coordination system established under Section 531.02413 to process |
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claims for services provided through other benefits programs |
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administered by the commission or a health and human services |
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agency; |
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(2) expand any other billing coordination tools and |
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resources used to process claims for health care services provided |
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through Medicaid to process claims for services provided through |
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other benefits programs administered by the commission or a health |
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and human services agency; and |
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(3) expand the scope of persons about whom information |
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is collected under Section 32.0424(a) [32.042], Human Resources |
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Code, to include recipients of services provided through other |
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benefits programs administered by the commission or a health and |
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human services agency. |
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SECTION 2. Section 32.0421(a), Human Resources Code, is |
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amended to read as follows: |
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(a) The commission may impose an administrative penalty on a |
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person who does not comply with a request for information made under |
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Section 32.0424(a) [32.042(b)]. |
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SECTION 3. Section 32.0424, Human Resources Code, is |
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amended by amending Subsections (a), (c), and (d) and adding |
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Subsections (b-1) and (f) to read as follows: |
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(a) A third-party health insurer shall [is required to] |
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provide to the commission or the commission's designee, on the |
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commission's or the commission's designee's request, information in |
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a form prescribed by the executive commissioner necessary to |
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determine: |
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(1) the period during which an individual entitled to |
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medical assistance, the individual's spouse, or the individual's |
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dependents may be, or may have been, covered by coverage issued by |
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the health insurer; |
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(2) the nature of the coverage; and |
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(3) the name, address, and identifying number of the |
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health plan under which the person may be, or may have been, |
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covered. |
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(b-1) A third-party health insurer, other than a program |
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established under Title XVIII of the Social Security Act (42 U.S.C. |
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Section 1395 et seq.), that requires prior authorization for an |
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item or service provided to an individual entitled to medical |
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assistance shall accept a prior authorization approved by the |
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commission or the commission's designee for the item or service as |
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if the prior authorization was made by the third-party health |
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insurer for the item or service. |
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(c) Not later than the 60th day after the date a [A] |
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third-party health insurer receives an [shall respond to any] |
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inquiry from [by] the commission or the commission's designee |
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regarding a claim for payment for any health care item or service |
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reimbursed by the commission or the commission's designee under the |
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medical assistance program, the insurer shall respond to the |
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inquiry, provided the claim for payment that is the subject of the |
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inquiry was submitted by the commission or the commission's |
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designee not later than the third anniversary of the date the health |
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care item or service was provided. |
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(d) A third-party health insurer may not deny a claim |
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submitted by the commission or the commission's designee for which |
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payment was made under the medical assistance program solely on the |
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basis of the date of submission of the claim, the type or format of |
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the claim form, [or] a failure to present proper documentation at |
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the point of service that is the basis of the claim, or, for a |
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third-party insurer other than a program established under Title |
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XVIII of the Social Security Act (42 U.S.C. Section 1395 et seq.), a |
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failure to obtain prior authorization for the item or service for |
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which the claim is being submitted, if: |
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(1) the claim is submitted by the commission or the |
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commission's designee not later than the third anniversary of the |
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date the item or service was provided; and |
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(2) any action by the commission or the commission's |
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designee to enforce the state's rights with respect to the claim is |
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commenced not later than the sixth anniversary of the date the |
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commission or the commission's designee submits the claim. |
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(f) In this section, "third-party health insurer" includes: |
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(1) a self-insured plan established by an employer for |
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the benefit of the employer's employees in accordance with the |
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Employee Retirement Income Security Act of 1974 (29 U.S.C. Section |
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1001 et seq.); |
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(2) a group health plan as defined by Section 607 of |
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the Employee Retirement Income Security Act of 1974 (29 U.S.C. |
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Section 1167); |
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(3) a service benefit plan; |
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(4) a managed care organization; |
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(5) a pharmacy benefit manager; and |
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(6) any other entity that is legally responsible to |
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pay a claim for a health care item or service by law or under |
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contract. |
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SECTION 4. The following provisions of the Human Resources |
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Code are repealed: |
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(1) Section 32.042; and |
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(2) Section 32.0424(e). |
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SECTION 5. If before implementing any provision of this Act |
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a state agency determines that a waiver or authorization from a |
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federal agency is necessary for implementation of that provision, |
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the agency affected by the provision shall request the waiver or |
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authorization and may delay implementing that provision until the |
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waiver or authorization is granted. |
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SECTION 6. This Act takes effect September 1, 2023. |