Texas 2019 - 86th Regular

Texas House Bill HB1142 Compare Versions

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1-H.B. No. 1142
1+By: Lambert (Senate Sponsor - Buckingham) H.B. No. 1142
2+ (In the Senate - Received from the House April 16, 2019;
3+ April 17, 2019, read first time and referred to Committee on
4+ Intergovernmental Relations; May 6, 2019, reported favorably by
5+ the following vote: Yeas 7, Nays 0; May 6, 2019, sent to printer.)
6+Click here to see the committee vote
27
38
9+ A BILL TO BE ENTITLED
410 AN ACT
511 relating to the creation and operations of health care provider
612 participation programs in certain counties.
713 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
814 SECTION 1. Subtitle D, Title 4, Health and Safety Code, is
915 amended by adding Chapter 293C to read as follows:
1016 CHAPTER 293C. COUNTY HEALTH CARE PROVIDER PARTICIPATION PROGRAM IN
1117 CERTAIN COUNTIES NOT BORDERING CERTAIN POPULOUS COUNTIES
1218 SUBCHAPTER A. GENERAL PROVISIONS
1319 Sec. 293C.001. DEFINITIONS. In this chapter:
1420 (1) "Institutional health care provider" means a
1521 nonpublic hospital that provides inpatient hospital services.
1622 (2) "Paying hospital" means an institutional health
1723 care provider required to make a mandatory payment under this
1824 chapter.
1925 (3) "Program" means a county health care provider
2026 participation program authorized by this chapter.
2127 Sec. 293C.002. APPLICABILITY. This chapter applies only to
2228 a county that:
2329 (1) is not served by a hospital district or a public
2430 hospital;
2531 (2) has a population of more than 125,000 and less than
2632 140,000; and
2733 (3) is not adjacent to a county with a population of
2834 one million or more.
2935 Sec. 293C.003. COUNTY HEALTH CARE PROVIDER PARTICIPATION
3036 PROGRAM. (a) A county health care provider participation program
3137 authorizes a county to collect a mandatory payment from each
3238 institutional health care provider located in the county to be
3339 deposited in a local provider participation fund established by the
3440 county. Money in the fund may be used by the county to fund certain
3541 intergovernmental transfers and indigent care programs as provided
3642 by this chapter.
3743 (b) The commissioners court of a county may adopt an order
3844 authorizing the county to participate in the program, subject to
3945 the limitations provided by this chapter.
4046 SUBCHAPTER B. POWERS AND DUTIES OF COMMISSIONERS COURT
4147 Sec. 293C.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
4248 PAYMENT. The commissioners court of a county may require a
4349 mandatory payment authorized under this chapter by an institutional
4450 health care provider in the county only in the manner provided by
4551 this chapter.
4652 Sec. 293C.052. MAJORITY VOTE REQUIRED. The commissioners
4753 court of a county may not authorize the county to collect a
4854 mandatory payment authorized under this chapter without an
4955 affirmative vote of a majority of the members of the commissioners
5056 court.
5157 Sec. 293C.053. RULES AND PROCEDURES. After the
5258 commissioners court of a county has voted to require a mandatory
5359 payment authorized under this chapter, the commissioners court may
5460 adopt rules relating to the administration of the mandatory
5561 payment.
5662 Sec. 293C.054. INSTITUTIONAL HEALTH CARE PROVIDER
5763 REPORTING; INSPECTION OF RECORDS. (a) The commissioners court of a
5864 county that collects a mandatory payment authorized under this
5965 chapter shall require each institutional health care provider
6066 located in the county to submit to the county a copy of any
6167 financial and utilization data required by and reported to the
6268 Department of State Health Services under Sections 311.032 and
6369 311.033 and any rules adopted by the executive commissioner of the
6470 Health and Human Services Commission to implement those sections.
6571 (b) The commissioners court of a county that collects a
6672 mandatory payment authorized under this chapter may inspect the
6773 records of an institutional health care provider to the extent
6874 necessary to ensure compliance with the requirements of Subsection
6975 (a).
7076 SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
7177 Sec. 293C.101. HEARING. (a) Each year, the commissioners
7278 court of a county that collects a mandatory payment authorized
7379 under this chapter shall hold a public hearing on the amounts of any
7480 mandatory payments that the commissioners court intends to require
7581 during the year.
7682 (b) Not later than the fifth day before the date of the
7783 hearing required under Subsection (a), the commissioners court of
7884 the county shall publish notice of the hearing in a newspaper of
7985 general circulation in the county.
8086 (c) A representative of a paying hospital is entitled to
8187 appear at the public hearing and be heard regarding any matter
8288 related to the mandatory payments authorized under this chapter.
8389 Sec. 293C.102. DEPOSITORY. (a) The commissioners court of
8490 each county that collects a mandatory payment authorized under this
8591 chapter by resolution shall designate one or more banks located in
8692 the county as the depository for mandatory payments received by the
8793 county.
8894 (b) All income received by a county under this chapter,
8995 including the revenue from mandatory payments remaining after
9096 discounts and fees for assessing and collecting the payments are
9197 deducted, shall be deposited with the county depository in the
9298 county's local provider participation fund and may be withdrawn
9399 only as provided by this chapter.
94100 (c) All funds under this chapter shall be secured in the
95101 manner provided for securing county funds.
96102 Sec. 293C.103. LOCAL PROVIDER PARTICIPATION FUND;
97103 AUTHORIZED USES OF MONEY. (a) Each county that collects a
98104 mandatory payment authorized under this chapter shall create a
99105 local provider participation fund.
100106 (b) The local provider participation fund of a county
101107 consists of:
102108 (1) all revenue received by the county attributable to
103109 mandatory payments authorized under this chapter, including any
104110 penalties and interest attributable to delinquent payments;
105111 (2) money received from the Health and Human Services
106112 Commission as a refund of an intergovernmental transfer from the
107113 county to the state for the purpose of providing the nonfederal
108114 share of Medicaid supplemental payment program payments, provided
109115 that the intergovernmental transfer does not receive a federal
110116 matching payment; and
111117 (3) the earnings of the fund.
112118 (c) Money deposited to the local provider participation
113119 fund may be used only to:
114120 (1) fund intergovernmental transfers from the county
115121 to the state to provide:
116122 (A) the nonfederal share of a Medicaid
117123 supplemental payment program authorized under the state Medicaid
118124 plan, the Texas Healthcare Transformation and Quality Improvement
119125 Program waiver issued under Section 1115 of the federal Social
120126 Security Act (42 U.S.C. Section 1315), or a successor waiver
121127 program authorizing similar Medicaid supplemental payment
122128 programs; or
123129 (B) payments to Medicaid managed care
124130 organizations that are dedicated for payment to hospitals;
125131 (2) subsidize indigent programs;
126132 (3) pay the administrative expenses of the county
127133 solely for activities under this chapter;
128134 (4) refund a portion of a mandatory payment collected
129135 in error from a paying hospital; and
130136 (5) refund to paying hospitals the proportionate share
131137 of money received by the county that is not used to fund the
132138 nonfederal share of Medicaid supplemental payment program
133139 payments.
134140 (d) Money in the local provider participation fund may not
135141 be commingled with other county funds.
136142 (e) An intergovernmental transfer of funds described by
137143 Subsection (c)(1) and any funds received by the county as a result
138144 of an intergovernmental transfer described by that subsection may
139145 not be used by the county or any other entity to expand Medicaid
140146 eligibility under the Patient Protection and Affordable Care Act
141147 (Pub. L. No. 111-148) as amended by the Health Care and Education
142148 Reconciliation Act of 2010 (Pub. L. No. 111-152).
143149 SUBCHAPTER D. MANDATORY PAYMENTS
144150 Sec. 293C.151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL
145151 NET PATIENT REVENUE. (a) Except as provided by Subsection (e), the
146152 commissioners court of a county that collects a mandatory payment
147153 authorized under this chapter may require an annual mandatory
148154 payment to be assessed on the net patient revenue of each
149155 institutional health care provider located in the county. The
150156 commissioners court may provide for the mandatory payment to be
151157 assessed quarterly. In the first year in which the mandatory
152158 payment is required, the mandatory payment is assessed on the net
153159 patient revenue of an institutional health care provider as
154160 determined by the data reported to the Department of State Health
155161 Services under Sections 311.032 and 311.033 in the fiscal year
156162 ending in 2017 or, if the institutional health care provider did not
157163 report any data under those sections in that fiscal year, as
158164 determined by the institutional health care provider's Medicare
159165 cost report submitted for the 2017 fiscal year or for the closest
160166 subsequent fiscal year for which the provider submitted the
161167 Medicare cost report. The county shall update the amount of the
162168 mandatory payment on an annual basis.
163169 (b) The amount of a mandatory payment authorized under this
164170 chapter must be uniformly proportionate with the amount of net
165171 patient revenue generated by each paying hospital in the county. A
166172 mandatory payment authorized under this chapter may not hold
167173 harmless any institutional health care provider, as required under
168174 42 U.S.C. Section 1396b(w).
169175 (c) The commissioners court of a county that collects a
170176 mandatory payment authorized under this chapter shall set the
171177 amount of the mandatory payment. The amount of the mandatory
172178 payment required of each paying hospital may not exceed six percent
173179 of the hospital's net patient revenue.
174180 (d) Subject to the maximum amount prescribed by Subsection
175181 (c), the commissioners court of a county that collects a mandatory
176182 payment authorized under this chapter shall set the mandatory
177183 payments in amounts that in the aggregate will generate sufficient
178184 revenue to cover the administrative expenses of the county for
179185 activities under this chapter, to fund an intergovernmental
180186 transfer described by Section 293C.103(c)(1), and to pay for
181187 indigent programs, except that the amount of revenue from mandatory
182188 payments used for administrative expenses of the county for
183189 activities under this chapter in a year may not exceed the lesser of
184190 four percent of the total revenue generated from the mandatory
185191 payment or $20,000.
186192 (e) A paying hospital may not add a mandatory payment
187193 required under this section as a surcharge to a patient.
188194 Sec. 293C.152. ASSESSMENT AND COLLECTION OF MANDATORY
189195 PAYMENTS. The county may collect or contract for the assessment and
190196 collection of mandatory payments authorized under this chapter.
191197 Sec. 293C.153. INTEREST, PENALTIES, AND DISCOUNTS.
192198 Interest, penalties, and discounts on mandatory payments required
193199 under this chapter are governed by the law applicable to county ad
194200 valorem taxes.
195201 Sec. 293C.154. PURPOSE; CORRECTION OF INVALID PROVISION OR
196202 PROCEDURE. (a) The purpose of this chapter is to generate revenue
197203 by collecting from institutional health care providers a mandatory
198204 payment to be used to provide an intergovernmental transfer
199205 described by Section 293C.103(c)(1).
200206 (b) To the extent any provision or procedure under this
201207 chapter causes a mandatory payment authorized under this chapter to
202208 be ineligible for federal matching funds, the county may provide by
203209 rule for an alternative provision or procedure that conforms to the
204210 requirements of the federal Centers for Medicare and Medicaid
205211 Services.
206- SECTION 2. Subtitle D, Title 4, Health and Safety Code, is
207- amended by adding Chapter 298E to read as follows:
208- CHAPTER 298E. HEALTH CARE PROVIDER PARTICIPATION PROGRAM IN CERTAIN
209- HOSPITAL DISTRICTS
210- SUBCHAPTER A. GENERAL PROVISIONS
211- Sec. 298E.001. DEFINITIONS. In this chapter:
212- (1) "Board" means the board of hospital managers of a
213- district.
214- (2) "District" means a hospital district to which this
215- chapter applies.
216- (3) "Institutional health care provider" means a
217- hospital that is not owned and operated by a federal, state, or
218- local government and provides inpatient hospital services.
219- (4) "Paying provider" means an institutional health
220- care provider required to make a mandatory payment under this
221- chapter.
222- (5) "Program" means a health care provider
223- participation program authorized by this chapter.
224- Sec. 298E.002. APPLICABILITY. This chapter applies only to
225- a hospital district created in a county with a population of more
226- than 800,000 that was not included in the boundaries of a hospital
227- district before September 1, 2003.
228- Sec. 298E.003. HEALTH CARE PROVIDER PARTICIPATION PROGRAM;
229- PARTICIPATION IN PROGRAM. The board of a district may authorize the
230- district to participate in a health care provider participation
231- program on the affirmative vote of a majority of the board, subject
232- to the provisions of this chapter.
233- Sec. 298E.004. EXPIRATION. (a) Subject to Section
234- 298E.153(d), the authority of a district to administer and operate
235- a program under this chapter expires December 31, 2023.
236- (b) This chapter expires December 31, 2023.
237- SUBCHAPTER B. POWERS AND DUTIES OF BOARD
238- Sec. 298E.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
239- PAYMENT. The board of a district may require a mandatory payment
240- authorized under this chapter by an institutional health care
241- provider located in the district only in the manner provided by this
242- chapter.
243- Sec. 298E.052. RULES AND PROCEDURES. The board of a
244- district may adopt rules relating to the administration of the
245- program, including collection of the mandatory payments,
246- expenditures, audits, and any other administrative aspects of the
247- program.
248- Sec. 298E.053. INSTITUTIONAL HEALTH CARE PROVIDER
249- REPORTING. If the board of a district authorizes the district to
250- participate in a program under this chapter, the board shall
251- require each institutional health care provider located in the
252- district to submit to the district a copy of any financial and
253- utilization data required by and reported to the Department of
254- State Health Services under Sections 311.032 and 311.033 and any
255- rules adopted by the executive commissioner of the Health and Human
256- Services Commission to implement those sections.
257- SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
258- Sec. 298E.101. HEARING. (a) In each year that the board of
259- a district authorizes a program under this chapter, the board shall
260- hold a public hearing on the amounts of any mandatory payments that
261- the board intends to require during the year and how the revenue
262- derived from those payments is to be spent.
263- (b) Not later than the fifth day before the date of the
264- hearing required under Subsection (a), the board shall publish
265- notice of the hearing in a newspaper of general circulation in the
266- district and provide written notice of the hearing to each
267- institutional health care provider located in the district.
268- Sec. 298E.102. DEPOSITORY. (a) If the board of a district
269- requires a mandatory payment authorized under this chapter, the
270- board shall designate one or more banks as a depository for the
271- district's local provider participation fund.
272- (b) All funds collected by a district under this chapter
273- shall be secured in the manner provided for securing other funds of
274- the district.
275- Sec. 298E.103. LOCAL PROVIDER PARTICIPATION FUND;
276- AUTHORIZED USES OF MONEY. (a) If a district requires a mandatory
277- payment authorized under this chapter, the district shall create a
278- local provider participation fund.
279- (b) A district's local provider participation fund consists
280- of:
281- (1) all revenue received by the district attributable
282- to mandatory payments authorized under this chapter;
283- (2) money received from the Health and Human Services
284- Commission as a refund of an intergovernmental transfer under the
285- program, provided that the intergovernmental transfer does not
286- receive a federal matching payment; and
287- (3) the earnings of the fund.
288- (c) Money deposited to the local provider participation
289- fund of a district may be used only to:
290- (1) fund intergovernmental transfers from the
291- district to the state to provide the nonfederal share of Medicaid
292- payments for:
293- (A) uncompensated care payments to hospitals in
294- the Medicaid managed care service area in which the district is
295- located, if those payments are authorized under the Texas
296- Healthcare Transformation and Quality Improvement Program waiver
297- issued under Section 1115 of the federal Social Security Act (42
298- U.S.C. Section 1315);
299- (B) uniform rate enhancements for hospitals in
300- the Medicaid managed care service area in which the district is
301- located;
302- (C) payments available under another waiver
303- program authorizing payments that are substantially similar to
304- Medicaid payments to hospitals described by Paragraph (A) or (B);
305- or
306- (D) any reimbursement to hospitals for which
307- federal matching funds are available;
308- (2) subject to Section 298E.151(d), pay the
309- administrative expenses of the district in administering the
310- program, including collateralization of deposits;
311- (3) refund a mandatory payment collected in error from
312- a paying provider;
313- (4) refund to paying providers a proportionate share
314- of the money that the district:
315- (A) receives from the Health and Human Services
316- Commission that is not used to fund the nonfederal share of Medicaid
317- supplemental payment program payments; or
318- (B) determines cannot be used to fund the
319- nonfederal share of Medicaid supplemental payment program
320- payments;
321- (5) transfer funds to the Health and Human Services
322- Commission if the district is legally required to transfer the
323- funds to address a disallowance of federal matching funds with
324- respect to programs for which the district made intergovernmental
325- transfers described by Subdivision (1); and
326- (6) reimburse the district if the district is required
327- by the rules governing the uniform rate enhancement program
328- described by Subdivision (1)(B) to incur an expense or forego
329- Medicaid reimbursements from the state because the balance of the
330- local provider participation fund is not sufficient to fund that
331- rate enhancement program.
332- (d) Money in the local provider participation fund of a
333- district may not be commingled with other district funds.
334- (e) Notwithstanding any other provision of this chapter,
335- with respect to an intergovernmental transfer of funds described by
336- Subsection (c)(1) made by a district, any funds received by the
337- state, district, or other entity as a result of that transfer may
338- not be used by the state, district, or any other entity to:
339- (1) expand Medicaid eligibility under the Patient
340- Protection and Affordable Care Act (Pub. L. No. 111-148) as amended
341- by the Health Care and Education Reconciliation Act of 2010 (Pub. L.
342- No. 111-152); or
343- (2) fund the nonfederal share of payments to hospitals
344- available through the Medicaid disproportionate share hospital
345- program or the delivery system reform incentive payment program.
346- SUBCHAPTER D. MANDATORY PAYMENTS
347- Sec. 298E.151. MANDATORY PAYMENTS BASED ON PAYING PROVIDER
348- NET PATIENT REVENUE. (a) Except as provided by Subsection (e), if
349- the board of a district authorizes a health care provider
350- participation program under this chapter, the board may require an
351- annual mandatory payment to be assessed on the net patient revenue
352- of each institutional health care provider located in the district.
353- The board may provide for the mandatory payment to be assessed
354- quarterly. In the first year in which the mandatory payment is
355- required, the mandatory payment is assessed on the net patient
356- revenue of an institutional health care provider as reported in the
357- provider's Medicare cost report submitted for the most recent
358- fiscal year for which the provider submitted a Medicare cost
359- report. If the mandatory payment is required, the district shall
360- update the amount of the mandatory payment on an annual basis.
361- (b) The amount of a mandatory payment assessed under this
362- chapter by the board of a district must be uniformly proportionate
363- with the amount of net patient revenue generated by each paying
364- provider in the district as permitted under federal law. A health
365- care provider participation program authorized under this chapter
366- may not hold harmless any institutional health care provider
367- located in the district, as required under 42 U.S.C. Section
368- 1396b(w).
369- (c) If the board of a district requires a mandatory payment
370- authorized under this chapter, the board shall set the amount of the
371- mandatory payment, subject to the limitations of this chapter. The
372- aggregate amount of the mandatory payments required of all paying
373- providers in the district may not exceed six percent of the
374- aggregate net patient revenue from hospital services provided by
375- all paying providers in the district.
376- (d) Subject to Subsection (c), if the board of a district
377- requires a mandatory payment authorized under this chapter, the
378- board shall set the mandatory payments in amounts that in the
379- aggregate will generate sufficient revenue to cover the
380- administrative expenses of the district for activities under this
381- chapter and to fund an intergovernmental transfer described by
382- Section 298E.103(c)(1). The annual amount of revenue from
383- mandatory payments that shall be paid for administrative expenses
384- by the district is $150,000, plus the cost of collateralization of
385- deposits, regardless of actual expenses.
386- (e) A paying provider may not add a mandatory payment
387- required under this section as a surcharge to a patient.
388- (f) A mandatory payment assessed under this chapter is not a
389- tax for hospital purposes for purposes of Section 4, Article IX,
390- Texas Constitution, or Section 281.045 of this code.
391- Sec. 298E.152. ASSESSMENT AND COLLECTION OF MANDATORY
392- PAYMENTS. (a) A district may designate an official of the district
393- or contract with another person to assess and collect the mandatory
394- payments authorized under this chapter.
395- (b) The person charged by the district with the assessment
396- and collection of mandatory payments shall charge and deduct from
397- the mandatory payments collected for the district a collection fee
398- in an amount not to exceed the person's usual and customary charges
399- for like services.
400- (c) If the person charged with the assessment and collection
401- of mandatory payments is an official of the district, any revenue
402- from a collection fee charged under Subsection (b) shall be
403- deposited in the district general fund and, if appropriate, shall
404- be reported as fees of the district.
405- Sec. 298E.153. PURPOSE; CORRECTION OF INVALID PROVISION OR
406- PROCEDURE; LIMITATION OF AUTHORITY. (a) The purpose of this
407- chapter is to authorize a district to establish a program to enable
408- the district to collect mandatory payments from institutional
409- health care providers to fund the nonfederal share of a Medicaid
410- supplemental payment program or the Medicaid managed care rate
411- enhancements for hospitals to support the provision of health care
412- by institutional health care providers located in the district to
413- district residents in need of health care.
414- (b) This chapter does not authorize a district to collect
415- mandatory payments for the purpose of raising general revenue or
416- any amount in excess of the amount reasonably necessary to fund the
417- nonfederal share of a Medicaid supplemental payment program or
418- Medicaid managed care rate enhancements for hospitals and to cover
419- the administrative expenses of the district associated with
420- activities under this chapter.
421- (c) To the extent any provision or procedure under this
422- chapter causes a mandatory payment authorized under this chapter to
423- be ineligible for federal matching funds, the board of a district
424- may provide by rule for an alternative provision or procedure that
425- conforms to the requirements of the federal Centers for Medicare
426- and Medicaid Services. A rule adopted under this section may not
427- create, impose, or materially expand the legal or financial
428- liability or responsibility of the district or an institutional
429- health care provider in the district beyond the provisions of this
430- chapter. This section does not require the board to adopt a rule.
431- (d) A district may only assess and collect a mandatory
432- payment authorized under this chapter if a waiver program, uniform
433- rate enhancement, or reimbursement described by Section
434- 298E.103(c)(1) is available to the district.
435- SECTION 3. As soon as practicable after the expiration of
436- the authority of a hospital district to administer and operate a
437- health care provider participation program under Chapter 298E,
438- Health and Safety Code, as added by this Act, the board of hospital
439- managers of the hospital district shall transfer to each
440- institutional health care provider in the district that provider's
441- proportionate share of any remaining funds in any local provider
442- participation fund created by the district under Section 298E.103,
443- Health and Safety Code, as added by this Act.
444- SECTION 4. If before implementing any provision of this Act
212+ SECTION 2. If before implementing any provision of this Act
445213 a state agency determines that a waiver or authorization from a
446214 federal agency is necessary for implementation of that provision,
447215 the agency affected by the provision shall request the waiver or
448216 authorization and may delay implementing that provision until the
449217 waiver or authorization is granted.
450- SECTION 5. This Act takes effect immediately if it receives
218+ SECTION 3. This Act takes effect immediately if it receives
451219 a vote of two-thirds of all the members elected to each house, as
452220 provided by Section 39, Article III, Texas Constitution. If this
453221 Act does not receive the vote necessary for immediate effect, this
454222 Act takes effect September 1, 2019.
455- ______________________________ ______________________________
456- President of the Senate Speaker of the House
457- I certify that H.B. No. 1142 was passed by the House on April
458- 16, 2019, by the following vote: Yeas 122, Nays 13, 1 present, not
459- voting; and that the House concurred in Senate amendments to H.B.
460- No. 1142 on May 14, 2019, by the following vote: Yeas 125, Nays 16,
461- 2 present, not voting.
462- ______________________________
463- Chief Clerk of the House
464- I certify that H.B. No. 1142 was passed by the Senate, with
465- amendments, on May 9, 2019, by the following vote: Yeas 31, Nays 0.
466- ______________________________
467- Secretary of the Senate
468- APPROVED: __________________
469- Date
470- __________________
471- Governor
223+ * * * * *