| 1 | 1 | | 2017S0406-T 03/06/17 |
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| 2 | 2 | | By: Perry S.B. No. 2088 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the reimbursement of rural hospitals in the Texas |
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| 8 | 8 | | Medicaid program. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle F, Title 1, Health and Safety Code, |
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| 11 | 11 | | Chapter 533, Section 533.002 is amended to read as follows: |
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| 12 | 12 | | Sec. 533.002. PURPOSE. The commission shall implement the |
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| 13 | 13 | | Medicaid managed care program by contracting with managed care |
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| 14 | 14 | | organizations in a manner that, to the extent possible: |
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| 15 | 15 | | (1) improves the health of Texans by: |
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| 16 | 16 | | (A) emphasizing prevention; |
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| 17 | 17 | | (B) promoting continuity of care; and |
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| 18 | 18 | | (C) providing a medical home for recipients; |
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| 19 | 19 | | (2) ensures that each recipient receives high quality, |
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| 20 | 20 | | comprehensive health care services in the recipient's local |
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| 21 | 21 | | community; |
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| 22 | 22 | | (3) encourages the training of and access to primary |
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| 23 | 23 | | care physicians and providers; |
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| 24 | 24 | | (4) maximizes cooperation with existing public health |
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| 25 | 25 | | entities, including local departments of health; |
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| 26 | 26 | | (5) provides incentives to managed care organizations |
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| 27 | 27 | | to improve the quality of health care services for recipients by |
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| 28 | 28 | | providing value-added services; [and] |
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| 29 | 29 | | (6) reduces administrative and other nonfinancial |
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| 30 | 30 | | barriers for recipients in obtaining health care services; and |
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| 31 | 31 | | (7) provides for reimbursement to rural hospitals as |
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| 32 | 32 | | defined in the Texas Medicaid program on a per individual hospital |
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| 33 | 33 | | cost basis using payment methodology established by the commission |
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| 34 | 34 | | that assures rural hospitals recover allowable cost incurred to |
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| 35 | 35 | | provide services to Medicaid beneficiaries. The commission may |
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| 36 | 36 | | directly reimburse rural hospitals or contract with managed care |
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| 37 | 37 | | organizations to process reimbursement payments however contracts |
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| 38 | 38 | | associated with managed care organizations must allow for full pass |
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| 39 | 39 | | through of allowable cost reimbursement to rural hospitals. |
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| 40 | 40 | | SECTION 2. This Act takes effect immediately if it receives |
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| 41 | 41 | | a vote of two-thirds of all the members elected to each house, as |
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| 42 | 42 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 43 | 43 | | Act does not receive the vote necessary for immediate effect, this |
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| 44 | 44 | | Act takes effect September 1, 2017. |
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