84R5379 JSL-D By: Price, Keough H.B. No. 3823 A BILL TO BE ENTITLED AN ACT relating to rate-setting and data collection processes under the program of all-inclusive care for the elderly. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 32, Human Resources Code, is amended by adding Sections 32.0532, 32.0533, and 32.0534 to read as follows: Sec. 32.0532. PACE PROGRAM REIMBURSEMENT METHODOLOGY. (a) In this section and Sections 32.0533 and 32.0534: (1) "Commission" means the Health and Human Services Commission. (2) "PACE program" means the program of all-inclusive care for the elderly (PACE) established under Section 32.053. (b) In setting the reimbursement rates under the PACE program, the executive commissioner of the commission shall ensure that: (1) reimbursement rates for providers under the program are adequate to sustain the program; (2) reimbursements paid under the program do not, in the aggregate, exceed the reasonable and necessary costs to operate the program; and (3) the program is cost-neutral when compared to the cost to serve a comparable population in the STAR + PLUS Medicaid managed care program. (c) For purposes of Subsections (b)(1) and (2), the commission shall consider requiring providers under the PACE program to report historical cost and utilization data. If the commission requires providers to report historical cost and utilization data under this section: (1) the commission may establish a cost-reporting structure that accommodates data collection from providers by modifying as appropriate an existing cost-reporting structure used for other programs administered by the commission; and (2) the commission shall determine which costs the commission considers reasonable and necessary under the program. (d) For purposes of Subsection (b)(3), the commission shall consider data on the cost of services provided to comparable recipients enrolled in the STAR + PLUS Medicaid managed care program to calculate the upper payment limit component of the PACE program reimbursement rates. The cost of those services includes the Medicaid capitation payment per recipient and Medicaid payments made on a fee-for-service basis for services not covered by the capitation payment. Sec. 32.0533. DATA COLLECTION: PACE AND STAR + PLUS MEDICAID MANAGED CARE PROGRAMS. The commission, in collaboration with the Department of Aging and Disability Services, shall modify the methods by which the commission and the department collect data for evaluation of the PACE and STAR + PLUS Medicaid managed care programs to allow comparison of recipient outcomes between the programs. The modification to data collection methods must include changes to: (1) survey instruments that measure recipient experience; (2) compilation of the same or similar complaint, disenrollment, and appeals data; and (3) compilation of the same or similar hospital admissions and readmissions data. Sec. 32.0534. EVALUATION AND REPORT COMPARING PACE AND STAR + PLUS MEDICAID MANAGED CARE PROGRAMS. (a) The commission, in collaboration with the Department of Aging and Disability Services, shall conduct an evaluation of the PACE program that compares Medicaid costs and client outcomes under the PACE program to Medicaid costs and client outcomes under the STAR + PLUS Medicaid managed care program. The commission must design the evaluation in a manner that: (1) compares similar recipient types between the programs; and (2) accounts for geographic differences and recipient acuity. (b) The evaluation required under this section must include an assessment of future cost implications if the commission fails to establish a reimbursement methodology under the PACE program in accordance with Section 32.0532. (c) The commission shall compile a report on the findings of the evaluation under this section. Not later than December 1, 2016, the commission shall submit the report to the Legislative Budget Board and the governor. (d) This section expires September 1, 2017. 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 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 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.