By: Zerwas, et al. (Senate Sponsor - Nelson) H.B. No. 2245 (In the Senate - Received from the House April 27, 2011; May 3, 2011, read first time and referred to Committee on Health and Human Services; May 11, 2011, reported favorably by the following vote: Yeas 8, Nays 0; May 11, 2011, sent to printer.) A BILL TO BE ENTITLED AN ACT relating to physician incentive programs to reduce hospital emergency room use for non-emergent conditions by Medicaid recipients. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 531, Government Code, is amended by adding Sections 531.086 and 531.0861 to read as follows: Sec. 531.086. STUDY REGARDING PHYSICIAN INCENTIVE PROGRAMS TO REDUCE HOSPITAL EMERGENCY ROOM USE FOR NON-EMERGENT CONDITIONS. (a) The commission shall conduct a study to evaluate physician incentive programs that attempt to reduce hospital emergency room use for non-emergent conditions by recipients under the medical assistance program. Each physician incentive program evaluated in the study must: (1) be administered by a health maintenance organization participating in the STAR or STAR + PLUS Medicaid managed care program; and (2) provide incentives to primary care providers who attempt to reduce emergency room use for non-emergent conditions by recipients. (b) The study conducted under Subsection (a) must evaluate: (1) the cost-effectiveness of each component included in a physician incentive program; and (2) any change in statute required to implement each component within the Medicaid fee-for-service or primary care case management model. (c) Not later than August 31, 2012, the executive commissioner shall submit to the governor and the Legislative Budget Board a report summarizing the findings of the study required by this section. (d) This section expires September 1, 2013. Sec. 531.0861. PHYSICIAN INCENTIVE PROGRAM TO REDUCE HOSPITAL EMERGENCY ROOM USE FOR NON-EMERGENT CONDITIONS. (a) The executive commissioner by rule shall establish a physician incentive program designed to reduce the use of hospital emergency room services for non-emergent conditions by recipients under the medical assistance program. (b) In establishing the physician incentive program under Subsection (a), the executive commissioner may include only the program components identified as cost-effective in the study conducted under Section 531.086. (c) If the physician incentive program includes the payment of an enhanced reimbursement rate for routine after-hours appointments, the executive commissioner shall implement controls to ensure that the after-hours services billed are actually being provided outside of normal business hours. SECTION 2. If before implementing any provision of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for the implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted. SECTION 3. This Act takes effect September 1, 2011. * * * * *