Texas House Bill HB2500

Texas 2017 - 85th Regular

Caption

Relating to the provision of Medicaid benefits under a fee-for-service delivery model.

Impact

The immediate impact of HB2500 would be the repeal of Chapters 533 and 534 of the Government Code, which pertain to the managed care system for Medicaid. By doing so, the bill reverts the Medicaid system back to its historical fee-for-service delivery model, which proponents argue will enhance the quality of care provided to recipients. Legislative discussions may also consider how this transition might complicate existing care arrangements and whether sufficient resources are available to support the switch back to a fee-for-service system.

Summary

House Bill 2500 aims to transition the delivery of Medicaid benefits under a fee-for-service model, moving away from managed care frameworks that had been established in previous legislation. The bill directs the relevant Texas commission to implement this shift while creating a transition plan that accounts for the differences in operation between the two models. The proposed effective date for the implementation of these changes is September 1, 2019. The underlying goal is to streamline the provision of medical assistance and potentially increase accessibility for Medicaid beneficiaries.

Contention

Notable points of contention surrounding HB2500 include concerns from various stakeholders about the effectiveness of managed care versus fee-for-service models. Supporters of the managed care system may argue that it enhances coordination of care and reduces unnecessary costs. Conversely, advocates for the fee-for-service approach contend that it provides better incentives for providers to deliver quality care. Legislative debates will likely reflect these divergent views, especially regarding patient outcomes and fiscal impacts on the state's Medicaid budget.