1 | 1 | | 86R13482 LED-D |
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2 | 2 | | By: Muñoz, Jr. H.B. No. 2353 |
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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 administrative and other expenditures by Medicaid |
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8 | 8 | | managed care organizations. |
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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 533.036 to read as follows: |
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12 | 12 | | Sec. 533.036. ADMINISTRATIVE AND OTHER EXPENDITURES. (a) |
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13 | 13 | | The legislature, after consulting with the commission, may set in |
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14 | 14 | | the General Appropriations Act an upper limit on the percentage or |
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15 | 15 | | amount of Medicaid capitated or other premium payments that a |
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16 | 16 | | managed care organization offering a Medicaid managed care plan may |
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17 | 17 | | spend on administrative, overhead, and marketing costs in each year |
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18 | 18 | | of the state fiscal biennium. |
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19 | 19 | | (b) Not later than December 1 of each year, a managed care |
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20 | 20 | | organization offering a Medicaid managed care plan shall report to |
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21 | 21 | | the legislature and the commission for the preceding state fiscal |
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22 | 22 | | year: |
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23 | 23 | | (1) the total amount of premium payments and other |
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24 | 24 | | state money received by the managed care organization, including a |
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25 | 25 | | list of the amount and date of each premium payment and the amount, |
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26 | 26 | | date, and source of each receipt of state money; and |
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27 | 27 | | (2) the amount and percentage of premium payments and |
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28 | 28 | | other state money that the managed care organization: |
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29 | 29 | | (A) spent on administrative, overhead, and |
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30 | 30 | | marketing costs; |
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31 | 31 | | (B) spent on clinical or pharmaceutical |
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32 | 32 | | reimbursement for medical and pharmaceutical services provided to |
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33 | 33 | | enrollees; |
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34 | 34 | | (C) paid to subcontractors, including a list of |
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35 | 35 | | the identity of and the amount paid to each subcontractor; and |
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36 | 36 | | (D) retained as profit. |
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37 | 37 | | (c) If a managed care organization contracts with a |
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38 | 38 | | subcontractor, the report must include a list of the amount of each |
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39 | 39 | | payment the subcontractor paid directly to a health care provider, |
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40 | 40 | | categorized by provider type. |
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41 | 41 | | (d) A managed care organization shall report the |
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42 | 42 | | information required by this section in an aggregate form that may |
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43 | 43 | | be organized by premium payments and other state money, service |
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44 | 44 | | delivery area, and provider type. |
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45 | 45 | | (e) A managed care organization may include in the report |
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46 | 46 | | the amount and percentage of premium payments and other state money |
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47 | 47 | | that the managed care organization spent on activities that improve |
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48 | 48 | | health care quality for enrollees and all other activities for |
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49 | 49 | | those enrollees but may not include that amount and percentage in |
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50 | 50 | | the amount and percentage reported under Subsection (b)(2)(B). |
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51 | 51 | | SECTION 2. If before implementing any provision of this Act |
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52 | 52 | | a state agency determines that a waiver or authorization from a |
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53 | 53 | | federal agency is necessary for implementation of that provision, |
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54 | 54 | | the agency affected by the provision shall request the waiver or |
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55 | 55 | | authorization and may delay implementing that provision until the |
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56 | 56 | | waiver or authorization is granted. |
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57 | 57 | | SECTION 3. This Act takes effect immediately if it receives |
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58 | 58 | | a vote of two-thirds of all the members elected to each house, as |
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59 | 59 | | provided by Section 39, Article III, Texas Constitution. If this |
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60 | 60 | | Act does not receive the vote necessary for immediate effect, this |
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61 | 61 | | Act takes effect September 1, 2019. |
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