HBA-MPM H.B. 2807 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2807 By: Kitchen Public Health 7/3/2001 Enrolled BACKGROUND AND PURPOSE Texas has enacted many laws that address the provision of health coverage for its uninsured children. However, low-income adults are often unable to obtain affordable, quality health care. Workers in families that fall below 200 percent of the federal poverty level are less likely to receive health insurance through their employer. More than two-thirds of uninsured, non-retired adults age 18 and older have a job. A January 1999 poll conducted by the W.K. Kellogg Foundation indicated that 86 percent of Americans believe that working poor families should have access to health care coverage. There are a number of local initiatives that address the health needs of low-income, uninsured adults who do not qualify for Medicaid. Through a demonstration project, these initiatives could receive federal matching funds to expand health coverage for low-income adults. House Bill 2807 requires the Health and Human Services Commission to establish such a demonstration project. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2807 amends the Human Resources Code to require the Health and Human Services Commission (HHSC) to establish a demonstration project (project) to provide Medicaid to an adult who meets the income eligibility criteria set by HHSC, is not otherwise eligible for Medicaid, and is not covered by a health benefits plan offering adequate coverage. HHSC is required to establish a family income eligibility limit in conjunction with local governmental agencies that make funds available to HHSC for the project so that only an individual whose family income is at or below 200 percent of the federal poverty level is eligible for participation and to design the components of the project including the adoption of procedures for reporting and monitoring. In establishing the project, HHSC is required to ensure that the project is financed using funds made available by certain local governmental entities, which may include a county indigent health care program, to HHSC for matching purposes to maximize federal funds for Medicaid and that a participant in the project is not subject to a limitation of prescription drug benefits. The bill specifies that the manner in which a governmental entity makes funds available for matching purposes must include an option for the entity to be able to certify the amount of funds considered available instead of sending the funds to the state. The bill requires the Texas Department of Health (TDH) to administer the project at the direction of HHSC and requires HHSC to select one or more municipalities or counties in which to implement the project. One selected county must have a population of more than 725,000 or at least one municipality must have a population of more than 600,000. The bill provides that the project may be implemented in a multicounty region and may include local funds made available through a county indigent health care program. HHSC is required to appoint an advisory committee that includes health care providers and local government officials to assist HHSC and TDH in establishing and implementing the project. TDH is required to implement the project no later than January 1, 2002. The bill requires TDH to evaluate and report to the legislature on the operation and cost-effectiveness of the project no later than December 1 of each even-numbered year. EFFECTIVE DATE Vetoed.