HBA-MPM H.B. 2420 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2420 By: Coleman Public Health 4/16/2001 Introduced BACKGROUND AND PURPOSE Currently, parents of children receiving Medicaid are only eligible for Medicaid if they have net incomes below 17 percent of the federal poverty level after such deductions as work expenses and child care. This criteria is also applicable to individuals receiving Temporary Assistance for Needy Families (TANF) cash assistance. The federal Social Security Act allows states to expand Medicaid coverage to parents with higher incomes by increasing the amounts that are deducted from their gross incomes so that the amount of their net income remains below 17 percent of the federal poverty level. Texas does not take advantage of this federal provision. House Bill 2420 requires the Health and Human Services Commission to conduct a pilot program to provide Medicaid coverage for parents of children enrolled in Medicaid. 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 1 of this bill. ANALYSIS House Bill 2420 requires the Health and Human Services Commission (HHSC) by rule to develop and implement a pilot program in accordance with federal law to provide Medicaid coverage under the state Medicaid program to a low-income individual who is the parent of a child receiving Medicaid and who is otherwise not eligible for Medicaid. HHSC is required to determine the sites in which to implement the pilot program. The bill requires HHSC to submit a report to the legislature regarding the cost-effectiveness of the pilot program no later than December 1, 2002. The pilot program expires September 1, 2003. EFFECTIVE DATE September 1, 2001.