HBA-MPM C.S.H.B. 2896 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2896
By: Coleman
Public Health
4/19/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

In 1993, Texas began the transition to managed care for certain recipients
of Medicaid services, with pilot programs in Travis County and the
tri-county area of Jefferson, Chambers, and Galveston counties.  Since that
time, Medicaid managed care has been implemented in four additional service
areas:  Bexar, Tarrant, Lubbock, and Harris Counties.  The Dallas County
and El Paso County service areas are scheduled for implementation in the
fall of 1999, which would bring total enrollment in Medicaid managed care
to more than 800,000 individuals. 

The transition to Medicaid managed care has produced difficulties with
client enrollment, access to services, and provider reimbursement.  The
Health and Human Services Commission and the Texas Department of Health
jointly operate the Medical program and are charged with ensuring that the
implementation of Medicaid managed care meets the state's goals of
improving the health of needy Texans while realizing cost efficiencies in
the system. 

C.S.H.B. 2896 places a moratorium on future implementation of Medicaid
managed care until the commission demonstrates that certain issues are
resolved.  Additionally, this bill requires the commission to develop rules
regarding the sharing of annual profit earned by Medicaid managed care.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Health and Human Services
Commission in SECTION 11 (Section 533.014, Government Code) and SECTION 13
(Section 2.07, Chapter 1153, Acts of the 75th Legislature, Regular Session,
1997), of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter B, Chapter 531, Government Code, by adding
Section 531.0218, as follows: 

Sec. 531.0218.  EVALUATION OF ENTITIES CONTRACTING TO OPERATE MEDICAID
PROGRAM.  Requires the Health and Human Services Commission (commission) to
evaluate and report biennially to the legislature and governor regarding
the contractual performance and related costs of each of the administrative
entities contracting with the commission to operate the state Medicaid
program, including enrollment brokers, external quality review
organizations, primary care case management administrators, and claims
payors. 

SECTION 2.  Amends Section 533.002, Government Code, as follows:

Sec. 533.002.  PURPOSE.  Includes developing strategies to encourage more
personal responsibility in health care maintenance and decisions among
those tenets that are required to be set forth by the Health and Human
Services Commission (commission) when contracting with managed care
organizations (organizations).  Makes a nonsubstantive change. 

 SECTION 3. Amends Section 533.003, Government Code, as follows:

Section 533.003.  CONSIDERATIONS IN AWARDING CONTRACTS.  Includes
organizations that contract with school-based health centers among those
organizations which the commission is required to give preference to when
awarding contracts to managed care organizations.  Additionally, requires
the commission to consider the ability of organizations to process Medicaid
claims electronically when making these awards.  Makes nonsubstantive
changes. 

SECTION 4.  Amends Section 533.004, Government Code, by amending Subsection
(a) and adding Subsection (e), as follows: 

(a)  Requires the commission to contract with any, rather than at least
one, managed care organization in a health care service region that meets
certain criteria when providing health care services through Medicaid
managed care to recipients in that area.  Adds to the list of organizations
that the commission may contract with, an organization that holds a
certificate of authority as a health maintenance organization under Article
20A.05 (Issuance of Certificate of Authority), Insurance Code, and that is
certified under Section 5.01(a), Article 4495b, V.T.C.S. (Medical Practice
Act) and that is created by the University of Texas Medical Branch at
Galveston. Makes conforming changes. 

(e) Defines "health care service region" or "region" for purposes of a
managed care organization described by Subsection (a). 

SECTION 5.  Amends Section 533.005, Government Code, to provide that a
contract between a managed care organization and the commission for the
provision of health care services must include a requirement that the
commission, on the date of a recipient's enrollment in a managed care plan
issued by the managed care organization, inform the organization of the
recipient's certification, rather than recertification, date. 

SECTION 6.  Amends Subchapter A, Chapter 533, Government Code, by adding
Section 533.0055 and 533.0056, as follows: 

Sec. 533.0055.  REVIEW OF PROPOSED CONTRACT BY PRIVATE ENTITY.  (a)
Requires the commission to contract with a private entity to review each
proposed contract between the commission and a managed care organization to
provide health care services to recipients in a region under this chapter.
Requires the private entity to consider certain factors regarding proposed
premium rates, sanctions for failure to meet performance goals, the ability
of the managed care organizations to meet its contractual obligations and
to process Medicaid claims electronically, and any other issue directed by
the commission in conducting a review under this section. 

(b)  Requires the commission to enter into a contract with a private entity
to review a proposed contract under Subsection (a) no later than the 180th
day before the contract renewal date for the region to which the contract
applies. 

(c)  Requires a private entity reviewing a proposed contract under
subsection (a) to issue a report to the commission stating its findings,
including any recommended changes, no later than the 120th day before the
contract renewal date for the region to which the contract applies. 

(d)  Authorizes the commission to make necessary changes to a proposed
contract based on the findings of a review conducted by a private entity
under this section. 

Sec. 533.0056.  IMPLEMENTATION OF STATE-ADMINISTERED PLAN IN REGION.
Prohibits the commission from implementing more than one state-administered
managed care plan in a health care services region. 

SECTION 7.  Amends Section 533.006(a), Government Code, to include each
specialized pediatric  laboratory in the region, including those located in
children's hospitals, among those entities from which each managed care
organization contracting with the commission to provide health care
services is required to seek participation in the organization's provider
network. 

SECTION 8.  Amends Section 533.007(e), Government Code, to include the
ability of the managed care organization to process claims electronically
among those processes or systems required by a contract that a compliance
and readiness review by the commission is required to address. 

SECTION 9.  Amends Section 533.0075, Government Code, as follows:

Sec. 533.0075.  RECIPIENT ENROLLMENT.  Requires the commission to develop
and implement an expedited process for determining eligibility and
enrolling pregnant women and newborn infants in managed care plans, among
other requirements.  Requires the commission to ensure immediate access to
prenatal services and newborn care for pregnant women and infants enrolled
in managed care plans, including ensuring that a pregnant woman may obtain
an appointment with an obstetrical care provider for an initial maternity
evaluation no later than the 30th day after the woman applies for Medicaid.
Requires the commission to implement a process to reduce or eliminate the
number of recipients classified as "on hold" with respect to the delivery
of services  under managed care plans or, in the alternative, to develop a
method for continued payment to managed care organizations to avoid
interruptions in recipient care.  Requires the commission to also
temporarily assign Medicaid-eligible newborn infants to the traditional
fee-for-service component of the state Medicaid program for a period not to
exceed the earlier of 60 days or the date on which the department has
completed the newborn's Medicaid eligibility determination, including
assignment of a newborn's eligibility number.  Makes a nonsubstantive
change. 

SECTION 10.  Amends Subchapter A, Chapter 533, Government Code, by adding
Section 533.0076, as follows: 

Sec. 533.0076.  ELIGIBILITY DETERMINATION AND ENROLLMENT PILOT PROGRAM.
(a) Requires the commission, no later than November 1, 1999, to develop and
implement a pilot program to simplify, to the extent possible, the process
for determining eligibility for enrolling recipients in managed care plans.
Requires the commission to implement the pilot program in a single county
in a region in which it has implemented Medicaid managed care. 

(b)  Requires the commission, in implementing the pilot program and to the
extent possible, to use continuous eligibility procedures and eliminate the
use of resource requirements for determining eligibility.  Requires the
commission to evaluate certain aspects of the program with respect to
Medicaid costs, health outcomes, and other issues the commission considers
necessary. 

(c)  Requires the commission, no later than November 1, 2002, to submit to
the legislature a report concerning the pilot program, including
recommendations for legislative action 

(d)  Provides that this section expires September 1, 2003.

SECTION 11.  Amends Subchapter A, Chapter 533, Government Code, by adding
Sections 533.012533.016, as follows: 

Sec. 533.012.  MORATORIUM ON IMPLEMENTATION OF CERTAIN PILOT PROGRAMS;
REVIEW; REPORT.  (a)  Prohibits the commission, notwithstanding any other
law and after May 1, 2000, from implementing Medicaid managed care pilot
programs, Medicaid behavioral health pilot programs, or Medicaid Star +
Plus pilot programs (henceforth referred to as "Medicaid programs" for
purposes of this section) in a region for which the commission has not
received certain bids for health care services or entered into a contract
with a managed health care organization to provide health care services for
the region. 

 (b) Requires the commission to:

_review any outstanding administrative and financial issues with respect to
the Medicaid programs implemented in health care service regions; 

_review the obligations and duties of the commission and each health and
human services agency operating as part of the state Medicaid program with
respect to administration issues; 
_review the impact of the Medicaid managed care delivery systems, including
managed care organizations, prepaid health plans, and primary care case
management on certain aspects of the system; 
_evaluate the feasibility of implementing a payment system based on patient
severity and risk; 
_evaluate the progress of the state with respect to the development of
reliable and informative data relating to services provided to recipients;
and 
_review costs incurred and any savings realized by the state in
implementing Medicaid managed care. 

(c)  Provides that the commission's review must include an evaluation of
Medicaid managed care programs in other states to determine the
cost-effectiveness of using a single managed care delivery model in a
service area or a mixture of delivery models. 

(d)  Requires the commission, in performing duties and functions under
Subsection (b), to seek input from the state Medicaid managed care advisory
committee created by Subchapter C. 

(e)  Authorizes the commission, notwithstanding Subsection(a), to implement
Medicaid programs in a region described by that subsection if the
commission makes certain findings with respect to outstanding
administrative and financial issues and the benefit of the programs to
recipients and providers. 

(f)  Requires the commission, no later than November 1, 2000, to submit a
report to the governor and the legislature that includes certain
information and recommendations. 

(g)  Prohibits this section, to the extent practicable, from being
construed to affect the duty of the commission to plan the continued
expansion of Medicaid programs in health care service regions described by
Subsection (a) after July 1, 2001. 

(h)  Provides that this section expires July 1, 2001.

Sec. 533.013.  PREMIUM PAYMENT RATE DETERMINATION; REVIEW AND COMMENT.  (a)
Requires the commission, in determining premium rates paid to a managed
care organization under a managed care plan, to consider certain factors
with respect to a particular region. 

(b)  Prohibits the commission, in determining premium payment rates paid to
a managed care organization licensed under Chapter 20A, V.T.C.S. (Texas
Health Maintenance Organization Act),  from discounting premium payment
rates in an amount that is more than necessary to meet federal budget
neutrality requirements for projected fee-for-service costs except under
certain conditions. 

(c)  Requires the premium payment rates paid to a managed care organization
licensed under Chapter 20A, V.T.C.S. (Texas Health Maintenance Organization
Act), to be established by competitive bidding.  Prohibits the rates from
exceeding the maximum premium payment rates established by the commission
under Subsection (b). 

Sec. 533.014.  PROFIT SHARING.  (a)  Requires the commission to develop
rules regarding the sharing of profits earned by a managed care
organization  through a managed health care plan providing health care
services under a contract with the commission under this chapter. 

 (b)  Requires any amount received by the state under this section to be
deposited in the general revenue fund for the purpose of funding Medicaid
outreach and education activities. 

Sec. 533.015.  COORDINATION OF EXTERNAL OVERSIGHT AND UNIFORM DOCUMENT
REVIEW.  (a)  Requires the commission to coordinate all external oversight
activities to minimize duplication of oversight of managed care plans under
the state Medicaid program and disruption of operations under those plans.

(b)  Requires the commission to develop and administer a single uniform
procedure for the review of documents a managed care organization under
contract with the commission under this chapter is required to submit for
state approval.  Requires each agency involved in administering Medicaid
managed care for acute care, long-term care, or behavioral health services
to use the procedure developed by the commission under this subsection to
review documents submitted by managed care organizations. 

Sec. 533.016.  COORDINATION OF MEDICAID LONG-TERM CARE.  Requires the
commission, if it delegates all or part of its functions, powers, and
duties related to long-term care under Section 532.002, Health and Safety
Code, or Subchapter B, or Subchapter C, Chapter 532, Government Code,
including the operation of pilot projects, to: 

_designate a single health and human services agency to serve as lead
agency to ameliorate the impact of multiple agencies with responsibility
for functions related to long-term care; and 
_ensure that long-term care is administered by each of the appropriate
health and human services agencies as efficiently and effectively as if
care were being administered by a single state agency. 

SECTION 12.  Amends Chapter 533, Government Code, by adding Subchapter C,
as follows: 

SUBCHAPTER C.  STATEWIDE ADVISORY COMMITTEE.

Sec. 533.041.  APPOINTMENT AND COMPOSITION.  (a)  Requires the commission
to appoint a state Medicaid managed care advisory committee (committee) and
sets for the committee's composition. 

(b)  Provides that the committee must include a member of each regional
Medicaid managed care advisory committee appointed by the commission under
Subchapter B (Medicaid Delivery System), Chapter 532 (Medicaid Managed Care
Delivery System), Government Code. 

Sec. 533.042.  MEETINGS.  Requires the committee to meet at least quarterly
and makes it subject to Chapter 551 (Open Meetings), Government Code. 

Sec. 533.043.  POWERS AND DUTIES. Requires the committee to perform certain
functions with respect to Medicaid managed care. 

Sec. 533.045.  OTHER LAW.  Makes the committee subject to Chapter 2110
(State Agency Advisory Committees), Government Code, except as provided by
this subchapter. 

SECTION 13.  Amends Section 2.07(c), Chapter 1153, Acts of the 75th
Legislature, Regular Session, 1997, to require the commission to study the
feasibility of authorizing providers to reenroll in the program online or
through other electronic means, and, on completion of the study, to develop
and implement an electronic method of reenrollment for providers no later
than September 1, 2000, if the commission deems it feasible.  Provides that
a provider must enroll in the state Medicaid program or make necessary
contract modifications no later than March 31, 2000, rather than September
1, 1999, to retain eligibility to participate in the program unless the
commission implements under this subsection an electronic method of
reenrollment for providers, in which event, a provider must reenroll or
make the contractual modifications no later than September 1, 2000.
Authorizes the commission, by rule, to extend a reenrollment deadline
prescribed by this subsection if a significant number of providers, as
determined by the commission, have not met the reenrollment requirements by
the applicable deadline. 

SECTION 14.  (a)  Requires the commission, no later than January 1, 2000,
to implement the expedited process for determining eligibility for and
enrollment of certain recipients in Medicaid managed care plans required by
Section 533.0075(4), Government Code, as added by this Act. 

(b)  Requires the commission to report quarterly to the standing committees
of the senate and house of representatives with primary jurisdiction over
Medicaid managed care regarding the status of the expedited process
described by Subsection (a) of this section, and requires the commission to
submit quarterly reports under this subsection until it determines that the
process is fully implemented and functioning successfully. 

SECTION 15.  Requires the commission, if it determines that a waiver or
other authorization from a federal agency is necessary before implementing
any provision of this Act, to request the waiver or authorization and to
delay implementing the provision under the waiver or authorization is
granted. 

SECTION 16.  Effective date:  September 1, 1999, with the exception of
Section 533.013 Government Code, which is effective the first date it may
take effect under Section 39, Article III, Texas Constitution. 

SECTION 17.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2896 modifies the original bill as follows:

SECTION 1.  The substitute redesignates SECTION 1of the original to SECTION
2 of the substitute. SECTION 1 of the substitute amends Subchapter B,
Chapter 531, Government Code, by adding Section 531.0218 (Evaluation of
Entities Contracting to Operate Medicaid Program), Health and Safety Code,
to require the Health and Human Services Commission (commission) to
evaluate and report biennially to the legislature and governor regarding
the performance and costs of the administrative entities it contracts with
to operate the state Medicaid program. 

SECTION 2.  Redesignated from SECTION 1 of the original.

SECTION 3.  The substitute modifies Section 533.003, Government Code,
amended in SECTION 2 of the original, to include organizations that
contract with school-based health centers among those organizations which
the commission is required to give preference to when awarding contracts to
managed care organizations.  Additionally, the substitute requires the
commission to consider the ability of organizations to process Medicaid
claims electronically when making these awards, and makes nonsubstantive
changes.  The original bill required the commission to give extra
consideration to organizations demonstrating provider-friendly policies,
such as flexible authorization periods and polices, electronic billing, and
electronic payment when awarding contracts. 

SECTION 4.  The substitute modifies the original by adding entirely new
text for this section, which amends Section 533.004, Government Code, by
amending Subsection (a) and adding Subsection (e), as follows: 

(a)  Requires the commission to contract with any, rather than at least
one, managed care organization in a health care service region that meets
certain criteria when providing health care services through Medicaid
managed care to recipients in that area.  Adds to the list of organizations
that the commission may contract with, an organization that holds a
certificate of authority as a health maintenance organization under Article
20A.05 (Issuance of Certificate of Authority), Insurance Code, and that is
certified under Section 5.01(a), Article 4495b, V.T.C.S. (Medical Practice
Act) and that is created by the University of Texas Medical Branch at
Galveston. Makes conforming changes. 
 
(e) Defines "health care service region" or "region" for purposes of a
managed care organization described by Subsection (a). 

SECTION 5.  The substitute modifies Section 533.005, Government Code,
amended in SECTION 3 of the original, to provide that a contract between a
managed care organization and the commission for the provision of health
care services must include a requirement that the commission, on the date
of a recipient's enrollment in a managed care plan issued by the managed
care organization, inform the organization of the recipient's
certification, rather than recertification, date.  The substitute deletes
proposed language in the original bill which provides that a contract
between an organization and the commission for the organization to provide
health care services to recipients must contain, in addition to other
procedures and requirements, a prohibition that the managed care plan not
delegate any function or functions to a physician network that includes
exclusivity clauses in its contracts with physicians or other providers and
a requirement that the organization provide patient education and referral
through a 24-hour hotline which adheres to certain procedures. The original
also makes conforming changes. 

SECTION 6.  Redesignated from SECTION 4 of the original.  The substitute
amends Subchapter A, Chapter 533, Government Code, by adding Section
533.0056, in addition to Section 533.0055, as introduced in the original,
and making the following changes: 

Sec. 533.0055.  Changes the title of this section from "External Review of
Contracts" to "Review of Proposed Contract by Private Entity."  (a)
Requires the commission to contract with a private entity, rather than an
external entity, to review each proposed contract between the commission
and managed care organization to provide health care services to recipients
in a region under this chapter.  The substitute expands and modifies the
factors the private entity is required to consider, rather than comment on. 

(b)  The substitute requires the commission to enter into a contract with a
private entity to review a proposed contract under Subsection (a) no later
than the 180th day before the contract renewal date for the region to which
the contract applies.  The original requires the commission to enter into
the contract with an external entity no later than the 180th day before the
reenrollment date for a region and required the external entity to report
to the commission no later than 60 days before the enrollment date for a
region. 

(c)  The substitute adds this subsection to require a private entity
reviewing a proposed contract under subsection (a) to issue a report to the
commission stating its findings, including any recommended changes, no
later than the 120th day before the contract renewal date for the region to
which the contract applies. 

(d)  The substitute authorizes the commission to make necessary changes to
a proposed contract based on the findings of a review conducted by a
private entity under this section. 

The substitute adds new Section 533.0056 (Implementation of
State-Administered Plan in Region) to prohibit the commission from
implementing more than one state-administered managed care plan in a health
care service region. 

SECTION 7.  The substitute adds entirely new text or this section to amend
Section 533.006(a), Government Code, to include each specialized pediatric
laboratory in the region, including those located in children's hospitals,
among those entities from which each managed care organization contracting
with the commission to provide health care services is required to seek
participation in the organization's provider network. 

SECTION 8.  Redesignated from SECTION 5 of the original.  The substitute
modifies the original by amending Section 533.007(e), Government Code,
rather than adding Subsection (g), to include the ability of the managed
care organization to process claims electronically among those processes or
systems required by a contract that a compliance and readiness review by
the commission is required to address.  The original added Subsection (g)
to this section, to require the commission to evaluate and report on the
performance of all managed care plans and other contractors to the state
participating in support of the Medicaid managed care program and  to hold
all plans and any other contractors to the state who participate in support
of the program to equal standards of accountability. 

SECTION 9.  Redesignated  from SECTION 6 of the original.  The substitute
modifies Section 533.0075, Government Code, to make conforming changes with
respect to expediting the process for determining eligibility and enrolling
pregnant women into Medicaid and ensuring them immediate access to prenatal
services.  The substitute further expands on the services provided to
pregnant women and newborns, and requires the commission to implement a
process to reduce or eliminate the number of recipients classified as "on
hold" with respect to the delivery of services under managed care plans or,
in the alternative, to develop a method for continued payment to managed
care organizations to avoid interruptions in recipient care.  Makes a
nonsubstantive change. 

SECTION 10.  The substitute adds this new section to amend Subchapter A,
Chapter 533, Government Code, to add Section 533.0076 (Eligibility
Determination and Enrollment Pilot Program), Health and Safety Code, which
requires the commission to develop and implement a pilot program with
respect to determining eligibility for enrolling recipients in managed care
programs. 

SECTION 11.  Redesignated from SECTION 7 of the original.  The substitute
modifies Subchapter A, Chapter 533, Government Code, by changing proposed
Sections 533.012-533.016, as follows: 

Sec. 533.012.  The substitute changes the title of the original from
"Moratorium on Implementation; Review; Report" to "Moratorium on
Implementation of Certain Pilot Programs; Review; Report."  The substitute
introduces new text with respect to this section, regarding the
implementation of specific Medicaid programs (Medicaid behavioral health
pilot programs, or Medicaid Star + Plus pilot programs) in a region for
which the commission has not received certain bids for health care services
or entered into a contract with a managed health care organization to
provide health care services for the region.  The original prohibited the
commission from implementing Medicaid managed care or Medicaid long-term
care pilot programs in any additional regions after implementation of
Medicaid managed care or Medicaid long-term care pilot programs in
currently bid and contracted regions until the commission reviews certain
data and submits a report by January 1, 2001 to the governor and the 77th
Legislature including certain information and recommendations. 

Sec. 533.013.  The substitute changes the proposed title from "Premium Rate
Determination and Comment" to "Premium Payment Rate Determination; Review
and Comment." (a) The substitute modifies the original, in requiring the
commission, in determining premium rates paid to a managed care
organization under a managed care plan, to consider an expanded list of
factors with respect to a particular region.  

(b)  The substitute replaces the language of the original to prohibit the
commission, in determining premium payment rates paid to a managed care
organization licensed under Chapter 20A, V.T.C.S. (Texas Health Maintenance
Organization Act),  from discounting premium payment rates in an amount
that is more than necessary to meet federal budget neutrality requirements
for projected fee-for-service costs except under certain conditions. The
original requires the Texas Department of Insurance (department) to
concurrently review and comment on the premium rates developed by the
commission, with special focus on the requirements set forth in Subsection
(a). 

(c)  The substitute adds this new subsection to require the premium payment
rates paid to a managed care organization licensed under Chapter 20A,
V.T.C.S. (Texas Health Maintenance Organization Act), to be established by
competitive bidding.  Prohibits the rates from exceeding the maximum
premium payment rates established by the commission under Subsection (b). 

Sec. 533.014.  The substitute modifies the original by requiring the
commission to adopt, rather than develop, rules regarding the sharing of
profits earned by a managed care organization through a managed care plan
providing health care services under a contract with the commission under
this chapter, rather than managed care plans under the Medicaid  program.   

(b)  Requires any amount received by the state under this section to be
deposited in the general revenue find for specific purposes, rather than
requires all profit shared with the state or returned to the state under
this section to be deposited into the state's general revenue fund. 

Sec. 533.015.  The substitute changes the title of this proposed section
from "Uniform Document Review" to "Coordination of External Oversight and
Uniform Document Review."  (a)  The substitute  adds new text to require
the commission to coordinate external oversight activities to avoid
duplication of managed care plans under Medicaid and disruption of
services.   

(b)  The substitute makes conforming changes with respect to the original
by conforming the text of the original section (Uniform Document Review) to
Legislative Council format. 

Sec. 533.016.  The substitute modifies the original by changing the title
of this proposed section from "Coordination of Medicaid Long-Term Care
Pilots" to "Coordination of Medicaid Long-Term Care." The substitute
requires the commission, if it delegates all or part of its functions,
powers, and duties related to long-term care under Section 532.002, Health
and Safety Code, or Subchapter B, or Subchapter C, Chapter 532, Government
Code, including the operation of pilot projects, to: 

_designate a single health and human services agency to serve as lead
agency to ameliorate the impact of multiple agencies with responsibility
for functions related to long-term care; and 
_ensure that long-term care is administered by each of the appropriate
health and human services agencies as efficiently and effectively as if
care were being administered by a single state agency. 

The original bill requires the commission, if it delegates all or part of
its functions, powers, and duties under Section 532.002, Subchapter B, or
Subchapter C, Government Code, related to long-term care, including but not
limited to the operation of pilot projects, to designate a single lead
agency to ameliorate the impact of multiple agencies responsible for the
functions related to long-term care.  It also requires the commission to
ensure that long-term care is administered as efficiently and effectively
as if it were administered by a single state agency. 

The substitute deletes SECTION 8 of the original, which repealed Chapter
1153, Section 2.07 (Development of New Provider Contract), Government Code
(Acts of the 75th Legislature, Regular Session, 1997).  This section states
that as soon as possible after the effective date of this section, the
commission is required to develop a new provider contract for health care
services that contains provisions designed to strengthen the commission's
ability to prevent provider fraud under the state Medicaid program.  Sets
forth the process by which this contract shall be implemented. 

SECTION 12.  The substitute adds this new section, which amends Chapter
533, Government Code, to add Subchapter C (Statewide Advisory Committee),
which establishes the Medicaid managed care advisory committee, and sets
forth its composition, meeting requirements, and powers and duties. 

SECTION 13.  The substitute adds this new section, which amends Section
2.07(c), Chapter 1153, Acts of the 75th Legislature, Regular Session, 1997,
to require the commission to study the feasibility of implementing a
program whereby providers may reenroll by electronic means.  Sets deadlines
for reenrollment and authorizes the commission, by rule, to extend
deadlines under certain conditions. 

SECTION 14.  The substitute adds this new section to implement procedures
with respect to determining eligibility for and enrollment of certain
recipients in Medicaid managed care plans and requires the commission to
submit certain reports to certain state entities with respect to these
issues.  

SECTION 15.  The substitute adds this new section to require the
commission, if it determines that  a waiver or other authorization from a
federal agency is necessary before implementing any provision of this Act,
to request the waiver or authorization and to delay implementing the
provision until the waiver or authorization is granted. 

SECTION 16.  The substitute adds this section to provide certain effective
dates.  

SECTION 17.  Redesignates the long emergency clause from SECTION 9 of the
original and replaces it with the modified long emergency clause.