83R21986 KFF-F By: Zerwas, Rose H.B. No. 3158 Substitute the following for H.B. No. 3158: By: Raymond C.S.H.B. No. 3158 A BILL TO BE ENTITLED AN ACT relating to Medicaid managed care pilot programs for contracts with provider-directed managed care organizations, including organizations that delegate to health care collaboratives, and to the establishment of those collaboratives. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 533, Government Code, is amended by adding Section 533.0045 to read as follows: Sec. 533.0045. PILOT PROGRAMS FOR CONTRACTS WITH PROVIDER-DIRECTED MANAGED CARE ORGANIZATIONS. (a) In this section: (1) "Delegation agreement" has the meaning assigned by Section 1272.001, Insurance Code. (2) "Health care collaborative" has the meaning assigned by Section 848.001, Insurance Code, and includes an entity described by Section 316.001, Health and Safety Code. (3) "Medical assistance" has the meaning assigned by Section 32.003, Human Resources Code. (b) If cost-effective and feasible, the commission shall develop and implement pilot programs under which the commission contracts with provider-directed managed care organizations for purposes of: (1) promoting the efficient utilization of medical assistance services by recipients; and (2) determining the ability of the organizations to improve patient outcomes and contain costs associated with providing medical assistance to recipients within each organization's service delivery area. (c) The commission may develop and implement pilot programs under this section to test one or more service delivery models designed to provide medical assistance for acute care through a health maintenance organization that executes a delegation agreement with a health care collaborative, provided that: (1) the delegation agreement between the health care collaborative and the health maintenance organization is subject to the requirements of Chapter 1272, Insurance Code, and other applicable state and federal law; and (2) at least one of the pilot programs established as provided by this subsection is conducted with a provider-managed health maintenance organization that is owned by a not-for-profit pediatric facility. (d) If the commission implements pilot programs under this section, the commission shall: (1) implement those programs not later than September 1, 2015; (2) operate each program for at least 36 months and be permitted to extend the period if the commission determines an extension is appropriate; and (3) establish each program only in a service delivery area that: (A) has more than 400,000 individuals who, in the aggregate, are eligible for benefits under the STAR + PLUS Medicaid managed care program or the child health plan program; (B) is served by three or fewer managed care organizations; and (C) is served by a managed care organization that provides services to more than 40 percent of recipients in the service delivery area under the STAR + PLUS Medicaid managed program or enrollees in the service delivery area under the child health plan program. (e) On the conclusion of a pilot program, the commission: (1) shall evaluate the strengths and weaknesses of the program and determine, based on the commission's evaluation, the feasibility of expanding the program or implementing elements of the program statewide; and (2) if the commission determines it feasible and likely to result in the effective provision of medical assistance to recipients statewide, shall, not later than December 31, 2018, submit a report to the governor and the legislature that makes recommendations regarding improved policies and procedures with statewide applicability. (f) This section expires September 1, 2019. SECTION 2. Section 316.001, Health and Safety Code, is amended to read as follows: Sec. 316.001. AUTHORITY TO ESTABLISH HEALTH CARE COLLABORATIVE. A public hospital created under Subtitle C or D, a facility that is owned or operated by a public or not-for-profit hospital and that includes an academic health center, or a hospital district created under general or special law may form and sponsor a nonprofit health care collaborative that is certified under Chapter 848, Insurance Code, or is otherwise exempt from obtaining a certificate of authority or determination of approval under Section 848.002, Insurance Code. SECTION 3. If before implementing any provision of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for 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 4. This Act takes effect September 1, 2013.