By: Zaffirini S.B. No. 775 A BILL TO BE ENTITLED AN ACT relating to establishing a participant-directed Medicaid waiver pilot program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 531, Government Code, is amended by adding Section 531.0511 to read as follows: Sec. 531.0511. PARTICIPANT-DIRECTED MEDICAID WAIVER PILOT PROGRAM. (a) The commission, in consultation with the consumer direction work group created under Section 531.052, shall develop and implement a pilot program that allows Medicaid recipients who participate in any Section 1915(c) waiver program to have greater choice, direction, and control over the Medicaid benefits they receive than is available under the consumer direction models offered under Section 531.051. The pilot program must: (1) be operated in one rural area and one urban area of the state; (2) be operated for a period of at least four years; (3) in addition to offering consumer-directed service options, as defined by Section 531.051, allow a program participant to: (A) purchase participant-directed goods and services that address the needs identified in the participant's individual service plan using money that: (i) is allocated to the participant through an individual budget; and (ii) represents amounts that would be spent providing Medicaid services to the participant in the absence of the pilot program; and (B) employ, as the participant determines is appropriate, a household member, including the participant's spouse, to provide direct services to the participant under the participant's individual service plan, provided the household member is 18 years of age or older; (4) make available to each program participant a support advisor for purposes of: (A) verifying the participant's allocated budget; (B) assisting the participant in developing the participant's individual service plan based on the participant's allocated budget; and (C) coordinating the service and support providers and goods selected by the participant as part of the participant's individual service plan; and (5) employ strategies designed to achieve the following goals: (A) improving the health outcomes of program participants; (B) improving program participant access to services; (C) achieving cost containment and efficiency; and (D) reducing the administrative complexity of delivering benefits under the Medicaid program. (b) Not later than September 1, 2016, the commission shall submit to the legislature a report regarding the results of the pilot program. The report must include: (1) a summary of the strategies employed to achieve the program goals described by Subsection (a)(5); (2) an analysis of data collected during the operation of the program and the capability of the data to measure achievement of the program goals; (3) a recommendation regarding the continued operation of the program; and (4) a recommendation regarding whether the program should be implemented statewide. (c) This section expires September 1, 2017. SECTION 2. The Health and Human Services Commission shall apply for and actively pursue a waiver or other authorization to the state Medicaid plan from the federal Centers for Medicare and Medicaid Services or any other federal agency as necessary to implement the participant-directed Medicaid waiver pilot program under Section 531.0511, Government Code, as added by this Act, and may delay implementing that provision until the waiver or other authorization is granted. SECTION 3. This Act takes effect September 1, 2011.