Texas Senate Bill SB2388

Texas 2025 - 89th Regular

• Filed: 3/12/25

Caption

Relating to managed care contracts, including the procurement of managed care contracts, under Medicaid and the child health plan program.

Impact

The implications of SB2388 are significant as it seeks to change existing laws governing managed care contracts. It introduces new provisions that require the commission to issue an annual request for applications from MCOs, setting criteria for eligibility based on financial stability and compliance with performance and quality standards. This shift towards a more competitive procurement process aims to improve the quality of care delivered to Medicaid recipients and children enrolled in the child health plan, while also ensuring transparency and accountability among managed care providers. By implementing these standards, the bill strives to enhance overall health outcomes and patient satisfaction.

Summary

SB2388 addresses managed care contracts within Texas, particularly focusing on the procurement processes for these contracts under Medicaid and the child health plan program. The bill aims to enhance the options available for clients through the Managed Care Client Choice Program, which mandates that the Health and Human Services Commission (HHSC) ensure that multiple managed care organizations (MCOs) are available for selection by clients. This program emphasizes strong client choice among different managed care plans across health care service regions, thereby promoting greater flexibility for clients seeking health care services.

Contention

While the bill generally supports expanding client choices and improving care quality, there may be contention regarding the effects on existing MCOs and their operating procedures. Critics may voice concerns about the potential disruption to care continuity for clients currently enrolled in established managed care plans. Moreover, the bill’s provisions for automatic enrollment in Medicaid managed care plans could raise eyebrows, with stakeholders debating the balance between client choice and administrative efficiency. As the commission develops new rules and criteria for MCOs under this act, stakeholders will likely scrutinize how these changes impact various health care access, equity, and affordability.

Texas Constitutional Statutes Affected

Government Code

• Chapter 540. Medicaid Managed Care Program
  • Section: 0202
  • Section: 0206
  • Section: 0502

Health And Safety Code

• Chapter 62. Child Health Plan For Certain Low-income Children
  • Section: New Section

Human Resources Code

• Chapter 32. Medical Assistance Program
  • Section: 049