1 | 1 | | 86R9410 KKR-F |
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2 | 2 | | By: Price H.B. No. 2035 |
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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 reimbursement of rural hospitals participating in the |
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8 | 8 | | Medicaid managed care 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. Subchapter A, Chapter 533, Government Code, is |
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11 | 11 | | amended by adding Section 533.0041 to read as follows: |
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12 | 12 | | Sec. 533.0041. REIMBURSEMENT METHODOLOGY FOR RURAL |
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13 | 13 | | HOSPITALS. (a) In this section, "rural hospital" has the meaning |
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14 | 14 | | assigned by commission rules for purposes of Medicaid. |
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15 | 15 | | (b) To the extent allowed by federal law and notwithstanding |
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16 | 16 | | any state law, the executive commissioner shall by rule adopt a |
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17 | 17 | | reimbursement methodology for the payment of rural hospitals |
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18 | 18 | | participating in the Medicaid managed care program that ensures the |
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19 | 19 | | rural hospitals are reimbursed on an individual basis that allows |
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20 | 20 | | the rural hospitals to fully recover allowable costs incurred in |
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21 | 21 | | providing services to recipients. In adopting rules under this |
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22 | 22 | | section, the executive commissioner: |
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23 | 23 | | (1) may adopt a methodology that requires: |
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24 | 24 | | (A) the commission to directly reimburse rural |
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25 | 25 | | hospitals for allowable costs; |
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26 | 26 | | (B) a managed care organization to reimburse |
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27 | 27 | | rural hospitals; or |
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28 | 28 | | (C) both the commission and a managed care |
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29 | 29 | | organization to share in the total amount of reimbursement paid to |
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30 | 30 | | rural hospitals; and |
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31 | 31 | | (2) shall: |
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32 | 32 | | (A) define "allowable costs" for purposes of this |
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33 | 33 | | section; and |
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34 | 34 | | (B) require that the amount of reimbursement paid |
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35 | 35 | | to a rural hospital is subject to any applicable adjustments made by |
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36 | 36 | | the commission for payments to or penalties imposed on the rural |
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37 | 37 | | hospital that are based on a quality-based or performance-based |
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38 | 38 | | requirement under the Medicaid managed care program. |
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39 | 39 | | (c) Not later than January 1 of each even-numbered year, |
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40 | 40 | | the commission shall, as applicable: |
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41 | 41 | | (1) make an initial determination of the allowable |
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42 | 42 | | costs incurred by a rural hospital participating in the Medicaid |
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43 | 43 | | managed care program that is based on the rural hospital's cost |
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44 | 44 | | reports submitted to the federal Centers for Medicare and Medicaid |
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45 | 45 | | Services and other available information that the commission |
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46 | 46 | | considers relevant in determining the hospital's allowable costs; |
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47 | 47 | | or |
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48 | 48 | | (2) review and update the allowable costs previously |
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49 | 49 | | determined or updated under this subsection using the same criteria |
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50 | 50 | | required under Subdivision (1). |
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51 | 51 | | SECTION 2. Not later than January 1, 2020, the Health and |
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52 | 52 | | Human Services Commission shall determine the allowable costs |
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53 | 53 | | incurred by a rural hospital participating in the Medicaid managed |
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54 | 54 | | care program before that date as required by Section |
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55 | 55 | | 533.0041(c)(1), Government Code, as added by this Act. |
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56 | 56 | | SECTION 3. If before implementing any provision of this Act |
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57 | 57 | | a state agency determines that a waiver or authorization from a |
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58 | 58 | | federal agency is necessary for implementation of that provision, |
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59 | 59 | | the agency affected by the provision shall request the waiver or |
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60 | 60 | | authorization and may delay implementing that provision until the |
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61 | 61 | | waiver or authorization is granted. |
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62 | 62 | | SECTION 4. This Act takes effect September 1, 2019. |
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