Texas Senate Bill SB1150

Texas 2021 - 87th Regular

Caption

Relating to assignment or transfer of certain contracts with managed care organizations under Medicaid and the child health plan program.

Impact

The implementation of SB1150 could have significant implications on state healthcare operations, enhancing the state's ability to react promptly when an MCO decides to terminate its contract. The provision mandates that if the transition jeopardizes the health and safety of beneficiaries or creates legal conflicts, the commission must facilitate an immediate transfer. Moreover, this bill provides a structure that prevents cost inefficiency in managed care services by ensuring the ongoing provision of care without unnecessary gaps during MCO transitions.

Summary

SB1150 addresses the assignment or transfer of contracts with managed care organizations (MCOs) that provide services under Medicaid and the Child Health Plan Program in Texas. The bill allows the Texas Health and Human Services Commission to develop a process to transfer contracts from a terminating MCO to an existing MCO. The primary aim is to ensure continuity of care and protect Medicaid recipients by minimizing disruption caused by contract terminations. By formalizing this process, the bill seeks to uphold state and federal law compliance regarding healthcare services delivery.

Contention

Debate surrounding SB1150 may center on the extent of regulatory oversight and the balance of power between state agencies and managed care organizations. Stakeholders might express concerns over the operational details of the transfer process, particularly regarding any potential disruption to patient care during the transition. Furthermore, some may question how this bill impacts the competitive landscape of healthcare providers in Texas, assessing whether it disproportionately favors existing MCOs over new entrants in the market.