HBA-CCH H.B. 3386 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3386
By: Kitchen
Public Health
3/28/2001
Introduced



BACKGROUND AND PURPOSE 

The Star+Plus program is a Medicaid managed care pilot  program (pilot
program) currently operated in Harris County that serves elderly and
disabled persons.  Through its comprehensive, innovative case management
program, Star+Plus decreases the need for expensive hospital and
institutional care. Currently, however, the state of Texas has a moratorium
on the implementation of the Star+Plus program and other pilot programs in
regions that have not received a bid from a managed care organization (MCO)
or entered into a contract with an MCO.  House Bill 3386 removes the
moratorium and requires the Health and Human Services Commission to
implement pilot programs in other regions of the state unless HHSC
determines that implementation would not be feasible or beneficial for that
region.     

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 3386 amends the Government Code to remove the moratorium on the
implementation of a Medicaid managed care pilot program (pilot program) in
a region that has not received a bid from a managed care organization (MCO)
or entered into a contract with an MCO.  The bill requires the Health and
Human Services Commission (HHSC) to implement a pilot program in a
designated region unless HHSC determines that the implementation would not
be feasible or beneficial for  that region. 

The bill removes the provision requiring HHSC to review a pilot program's
outstanding administrative and financial issues, the impact of the Medicaid
managed care delivery system, and the feasibility of developing a separate
reimbursement methodology for public hospitals under a Medicaid managed
care system.  The bill also removes the provision that prohibits HHSC from
using federal medical assistance funds to implement any long-term care
integrated network pilot studies. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.