84R5302 LEH-F By: Naishtat H.B. No. 1873 A BILL TO BE ENTITLED AN ACT relating to a pilot project to evaluate the use of self-directed mental health services in the integrated Medicaid managed care system. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 1001, Health and Safety Code, is amended by adding Section 1001.085 to read as follows: Sec. 1001.085. SELF-DIRECTED MENTAL HEALTH SERVICES PILOT PROJECT. (a) The commission and the department jointly shall develop and implement a four-year pilot project for self-directed mental health services in the integrated Medicaid managed care system to maximize patient choice and encourage personal responsibility for achieving recovery. (b) To be eligible to participate in the pilot project, an individual must: (1) be at least 18 years of age; (2) have a serious mental illness, as defined by Section 1355.001, Insurance Code; and (3) be receiving Medicaid rehabilitative services through a local mental health authority. (c) Participation in the pilot project by an individual is voluntary, and the decision whether to participate may be made only by the individual or the individual's legally authorized representative. (d) The commission and the department shall develop the pilot project with input from relevant stakeholders, including patients, advocates, Medicaid managed care organizations, providers, and local mental health authorities. (e) The pilot project as implemented must include: (1) person-centered planning to assist each participant in identifying recovery goals and the specific services and supports needed to accomplish those goals; (2) the development of an individualized budget for each participant that is based on the goals identified in Subdivision (1) and of which some percentage less than 50 may be spent on nontraditional goods and services that the participant generally would not receive as part of a package of outpatient mental health services delivered through a local mental health authority; (3) guidelines for nontraditional goods and services that may be purchased with a participant's individualized budget to ensure that nontraditional goods and services purchased are directly related to the participant's recovery goals; (4) the option for a participant to use a life coach to assist with: (A) person-centered planning; (B) budgeting; (C) identifying and navigating community services; (D) recruiting, hiring, and releasing service providers; (E) crisis planning; and (F) interactions with the fiscal intermediary designated in accordance with Subdivision (7) and billing for goods and services; (5) specific qualifications for a life coach to be eligible to provide services to a participant; (6) the option for a participant to receive services from a certified peer specialist; (7) the designation of a fiscal intermediary who provides financial management and billing support for the project; and (8) a plan for budget neutrality by the end of the second year of the project. (f) The commission and the department shall select the pilot project site based on a competitive application process among the local mental health authorities. Applications must include evidence of significant patient and certified peer specialist participation in the preparation of the application. The commission and the department shall select as the pilot project site an area of this state where the local mental health authority and Medicaid managed care providers have a strong partnership and where there is a high commitment to the success of the project. (g) The commission and the department shall collect information relating to the pilot project, including information relating to recovery-focused outcome metrics and to the costs of the project. (h) Not later than one year after the date the pilot project concludes, the commission and the department shall submit to the legislature a report evaluating the pilot project, particularly with regard to cost-effectiveness and recovery-focused outcomes. In developing the report, the commission and the department shall seek private funding and support to assist with the evaluation process. (i) The executive commissioner, with input from patients receiving mental health services, certified peer specialists, and other interested stakeholders, shall adopt rules necessary to implement the pilot project developed under this section. SECTION 2. As soon as practicable after the effective date of this Act, the Health and Human Services Commission and the Department of State Health Services shall begin developing and implementing the pilot project under Section 1001.085, Health and Safety Code, as added by this Act. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.