Texas 2017 - 85th Regular

Texas House Bill HB3633 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R10100 JG-F
2	2	By: Price H.B. No. 3633
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to cost reporting requirements for certain facilities and
8	8	providers participating in medical assistance programs.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter B, Chapter 32, Human Resources Code,
11	11	is amended by adding Section 32.0285 to read as follows:
12	12	Sec. 32.0285. STREAMLINED COST REPORTING AND COST
13	13	VALIDATION FOR CERTAIN PROVIDERS. (a) This section applies to a
14	14	facility providing services under the ICF-IID program, as defined
15	15	by Section 534.001, Government Code, or a home and community-based
16	16	services (HCS) waiver program provider.
17	17	(b) The executive commissioner shall develop and implement
18	18	a streamlined cost reporting system for facilities and providers to
19	19	which this section applies. The streamlined cost reporting system
20	20	must:
21	21	(1) be organized by program type; and
22	22	(2) not later than December 1 of each odd-numbered
23	23	year, require each facility and provider to submit a financial
24	24	statement detailing the applicable program's costs that complies
25	25	with generally accepted accounting principles and contains the
26	26	following cost categories:
27	27	(A) total income for each program;
28	28	(B) total costs for each program, reported by
29	29	specific expense categories to be determined by commission rule;
30	30	(C) total costs for each service unit; and
31	31	(D) average payment rates for each program.
32	32	(c) The commission shall review the financial statement
33	33	required under Subsection (b) and use the financial statement to
34	34	evaluate a facility's or provider's compliance with any obligations
35	35	or requirements for participating in an incentive program
36	36	established under Section 32.028(g).
37	37	(d) In developing and implementing the streamlined cost
38	38	reporting system, the commission shall:
39	39	(1) consult with appropriate advisory committees to
40	40	obtain recommendations for the specific expense categories to be
41	41	included in the financial statement;
42	42	(2) ensure that any recommendations or rules adopted
43	43	based on recommendations provided under Subdivision (1):
44	44	(A) reduce administrative burdens and costs on
45	45	facilities and providers; and
46	46	(B) are consistent with:
47	47	(i) economic efficiency;
48	48	(ii) available resources and capacity of
49	49	small businesses; and
50	50	(iii) allowable and unallowable program
51	51	costs under Medicaid; and
52	52	(3) ensure that the streamlined cost reporting system:
53	53	(A) is implemented in a way that eases the
54	54	administrative burden on facilities and providers;
55	55	(B) establishes the relevant cost baselines and
56	56	framework for the cost determination and rate-setting processes;
57	57	and
58	58	(C) provides current and accurate data for
59	59	legislative reporting and budgeting.
60	60	(e) Not later than January 1 of each even-numbered year, the
61	61	commission shall randomly select 10 facilities and providers whose
62	62	financial reports the commission will use to validate program costs
63	63	reported in the financial statements for the preceding state fiscal
64	64	biennium required under Subsection (b). The executive commissioner
65	65	by rule shall designate small, medium, and large classes of
66	66	providers. The facilities and providers selected under this
67	67	subsection must include three facilities or providers from the
68	68	small providers class, four facilities or providers from the medium
69	69	providers class, and three facilities or providers from the large
70	70	providers class. The commission shall notify the facilities and
71	71	providers selected under this subsection not later than 120 days
72	72	before the date validation is scheduled to begin.
73	73	(f) A facility or provider that is selected under Subsection
74	74	(e) shall:
75	75	(1) cooperate with all reasonable requests from the
76	76	commission for necessary information and data to validate program
77	77	costs;
78	78	(2) hire additional staff as necessary to ensure
79	79	accurate and timely compliance with this section and rules adopted
80	80	under this section;
81	81	(3) contract with a certified public accountant to
82	82	audit the information and data collected by the facility or
83	83	provider; and
84	84	(4) submit detailed information and data of program
85	85	costs along with the report of the audit required under Subdivision
86	86	(3) in the form and manner prescribed by the commission.
87	87	(g) The commission shall review and analyze the report of
88	88	each audit required under Subsection (f) not later than August 31 of
89	89	each even-numbered year and prepare and submit a report to the
90	90	legislature based on those audits.
91	91	SECTION 2. If before implementing any provision of this Act
92	92	a state agency determines that a waiver or authorization from a
93	93	federal agency is necessary for implementation of that provision,
94	94	the agency affected by the provision shall request the waiver or
95	95	authorization and may delay implementing that provision until the
96	96	waiver or authorization is granted.
97	97	SECTION 3. Not later than November 1, 2017, the executive
98	98	commissioner of the Health and Human Services Commission shall
99	99	adopt rules necessary to implement the changes in law made by this
100	100	Act.
101	101	SECTION 4. This Act takes effect immediately if it receives
102	102	a vote of two-thirds of all the members elected to each house, as
103	103	provided by Section 39, Article III, Texas Constitution. If this
104	104	Act does not receive the vote necessary for immediate effect, this
105	105	Act takes effect September 1, 2017.