HBA-MPM H.B. 2541 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2541
By: Coleman
Public Health
3/28/2001
Introduced



BACKGROUND AND PURPOSE 

The state Medicaid program was created to provide health care for poor,
elderly, and disabled Texas citizens.  Currently, Medicaid provides acute
and long-term care services for approximately 1.7 million individuals in
Texas.  While the scope of the Medicaid program has expanded over the
years, there are still substantial gaps in coverage for certain
individuals.  For example, many low-income children are eligible for health
care benefits under Medicaid, yet remain unenrolled due to administrative
hurdles.  House Bill 2541 simplifies the application process for children's
Medicaid, removes the three-prescription drug limit, establishes various
demonstration projects, and reduces administrative requirements for managed
care organizations that contract with 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 5 (Section 32.0261, Human Resources Code) of this
bill. 

ANALYSIS

House Bill 2541 amends the Human Resources Code to prohibit the Health and
Human Services Commission (HHSC) from limiting benefits for the number of
medications prescribed to a recipient of prescription drug benefits under
the medical assistance program (Sec. 32.024). 

The bill prohibits HHSC to the extent allowed by federal law from
considering the assets and resources of a child under 19 years old or the
assets and resources of the child's parents or other caretaker when
determining the child's eligibility for medical assistance (Sec. 32.02415). 

The bill requires HHSC to the extent allowed by federal law and except as
otherwise provided by state law to adopt application forms and procedures
for a request for medical assistance provided to a child under 19 that are
similar to those used by the state child health plan (CHIP).  HHSC is
required to permit an application for assistance to be conducted by mail
(Sec. 32.025).  The bill requires HHSC in adopting rules and to the extent
allowed by federal law to ensure that documentation and verification
procedures used in determining and certifying eligibility for a child under
19 are similar to those used to determine eligibility for CHIP and to
permit a recertification review to be conducted by telephone or mail (Sec.
32.026). 

H.B. 2541 requires HHSC to adopt rules in accordance with federal law no
later than October 1, 2001 to provide for a period of continuous
eligibility for a child under 19 years of age who is eligible for medical
assistance.  The bill requires the rules to provide that the child remains
eligible for the assistance without additional review by HHSC and
regardless of changes in the child's resources until the first anniversary
of the date the child's eligibility was determined or the child's 19th
birthday, whichever date is earlier (Sec. 32.026). 


 Demonstration Project: Psychotropic Medications and Related Services

H.B. 2541 requires HHSC to establish a five-year demonstration project
(project) to provide a person psychotropic medications and related
laboratory and physician services through the state medical assistance
program.  The bill sets forth the eligibility criteria for a person to
participate in the project and specifies that participants are not subject
to the monthly three-prescription limit under the medical assistance
program. The bill specifies that participation in the project does not
entitle a participant to other services provided under the medical
assistance program.  The bill sets forth reporting and evaluation
procedures.  The program ends September 1, 2007 (Sec. 32.053). 

Demonstration Project: HIV/AIDS

The bill requires HHSC to establish a demonstration project (project) to
provide specified services and medications to a person infected with HIV or
AIDS through the medical assistance program in at least two counties with a
high prevalence of HIV or AIDS.  HHSC is authorized to request financial
participation from the counties where the project is established.  The bill
sets forth eligibility criteria  for a person to participate in the project
and specifies that participants are not subject to the monthly
three-prescription limit. The bill specifies that participation in the
project does not entitle a participant to other services provided under the
medical assistance program.  The bill sets forth reporting and evaluation
procedures. The project ends September 1, 2007 (Sec. 32.054). 

Demonstration Project: Women's Health Care Services

The bill requires HHSC to establish a five-year demonstration project
(project) through the medical assistance program to expand access to
preventive health and family planning services for women and specifies
which services an eligible woman may receive under the project.  The bill
sets forth eligibility criteria for a woman to participate in the project.
HHSC is required to compile a list of potential funding sources that a
participant can use to help pay for treatment for health problems
identified using services provided to the participant under the project and
for which the participant is not eligible to receive treatment under the
medical assistance program.  The bill sets forth reporting requirements.
The project ends September 1, 2007 (Sec. 32.055). 

Demonstration Project: Recipients with Disabilities

The bill requires HHSC to establish a demonstration project (project) to
implement in five sites a medical assistance buy-in program in accordance
with the federal Ticket to Work and Work Incentives Improvement Act of 1999
to provide medical assistance to specified persons.  In developing the
project, HHSC is authorized to establish income, assets, and resource
limitations for participation and require a participant to pay premiums and
other cost-sharing charges in accordance with federal law. The bill
requires HHSC to require a participant in the project to pay premiums to
the extent required by federal law.  The bill sets forth reporting and
evaluation procedures.  The project ends September 1, 2003 (Sec. 32.056). 

Medicaid Managed Care: Reporting Requirements, Inspection Procedures,
Sharing of Information 

H.B. 2541 amends the Government Code to require HHSC to evaluate on-site
inspection procedures  
of managed care organizations (organizations) contracting with HHSC for
purposes of providing services under the Medicaid managed care program
(program), and methods to streamline inspection procedures and reporting
requirements.  The bill also requires HHSC to require the organizations to
evaluate reporting requirements to identify methods of reducing the
administrative burden of health care providers.  The bill requires HHSC to
submit a report on streamlining methods to the legislature  no later than
November 1, 2002.  This provision expires September 1, 2002 (Sec. 533.0055
and SECTION 12).  

HHSC is required to require a health and human services agency (agency)
implementing a Medicaid  managed care program to provide to each other
agency implementing the program information reported to that agency by an
organization or health care provider providing services to recipients (Sec.
533.016). 

The bill requires the state agencies responsible for implementing the
demonstration projects for psychotropic medications, HIV/AIDS services, and
women's health care services to request and actively pursue any necessary
waivers or authorizations no later than September 1, 2002 (SECTION 11). 

EFFECTIVE DATE

September 1, 2001.  Provisions related to demonstration projects for
psychotropic medications, HIV and AIDS services, and women's health care
services and provisions regarding evaluation of reporting requirements and
inspection procedures for Medicaid managed care take effect on passage, or
if this Act does not receive the necessary vote, the provisions take effect
September 1, 2001.