Texas 2019 - 86th Regular

Texas House Bill HB2798 Compare Versions

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1-86R26244 KFF-D
2- By: Klick, Deshotel, Clardy, Hinojosa, H.B. No. 2798
3- et al.
4- Substitute the following for H.B. No. 2798:
5- By: Clardy C.S.H.B. No. 2798
1+86R6626 KFF-D
2+ By: Klick H.B. No. 2798
63
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85 A BILL TO BE ENTITLED
96 AN ACT
107 relating to the reimbursement of certain urban teaching hospitals
118 for the provision of inpatient hospital care under Medicaid.
129 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1310 SECTION 1. Subchapter B, Chapter 32, Human Resources Code,
1411 is amended by adding Section 32.0285 to read as follows:
1512 Sec. 32.0285. CALCULATION OF MEDICAL EDUCATION ADD-ON FOR
1613 REIMBURSEMENT OF CERTAIN URBAN TEACHING HOSPITALS. (a) In this
1714 section:
1815 (1) "Base standard dollar amount" means the
1916 standardized payment amount calculated by the commission for costs
2017 incurred by prospectively paid hospitals in this state for
2118 providing inpatient hospital care under Medicaid.
2219 (2) "Children's hospital" means a hospital designated
2320 by the Centers for Medicare and Medicaid Services as a children's
2421 hospital.
2522 (3) "Medical education add-on" means an adjustment to
2623 the base standard dollar amount for an urban teaching hospital to
2724 reflect higher patient care costs relative to nonteaching urban
2825 hospitals.
2926 (4) "Rural hospital" means a hospital enrolled as a
3027 Medicaid provider that:
3128 (A) is located in a county with a population of
3229 not more than 60,000;
3330 (B) is designated by the Centers for Medicare and
3431 Medicaid Services as a critical access hospital, sole community
3532 hospital, or rural referral center and is not located in an area
3633 defined by the United States Office of Management and Budget as a
3734 metropolitan statistical area; or
3835 (C) meets all of the following criteria:
3936 (i) has 100 or fewer beds;
4037 (ii) is designated by the Centers for
4138 Medicare and Medicaid Services as a critical access hospital, sole
4239 community hospital, or rural referral center; and
4340 (iii) is located in an area defined by the
4441 United States Office of Management and Budget as a metropolitan
4542 statistical area.
4643 (5) "State-owned teaching hospital" means:
4744 (A) The University of Texas Medical Branch at
4845 Galveston;
4946 (B) The University of Texas Health Science Center
5047 at Tyler; and
5148 (C) The University of Texas M.D. Anderson Cancer
5249 Center.
5350 (6) "Teaching hospital" means a hospital that incurs
5451 indirect costs for operating graduate medical education programs
5552 and for which the Centers for Medicare and Medicaid Services has
5653 calculated and assigned a percentage Medicare education adjustment
5754 factor under 42 C.F.R. Section 412.105.
5855 (7) "Urban hospital" means a hospital that:
5956 (A) is located in an area defined by the United
6057 States Office of Management and Budget as a metropolitan
6158 statistical area; and
6259 (B) is not a rural hospital, children's hospital,
6360 state-owned teaching hospital, or freestanding psychiatric
6461 facility.
6562 (b) To the extent permitted by federal law, in order to
6663 ensure that urban teaching hospitals are accurately reimbursed for
6764 the provision of inpatient hospital care to recipients under
6865 Medicaid, the commission shall at least annually update the
6966 education adjustment factor used to calculate the medical education
7067 add-on using the most current data available, including:
7168 (1) data related to the number of interns and
7269 residents enrolled in a hospital's approved teaching program; and
7370 (2) the Medicare education adjustment factor assigned
7471 under 42 C.F.R. Section 412.105 in effect at the time the commission
7572 makes the update.
76- SECTION 2. (a) In this section:
77- (1) "Medicaid" has the meaning assigned by Section
78- 531.001, Government Code.
79- (2) "Medical education add-on," "teaching hospital,"
80- and "urban hospital" have the meanings assigned by Section 32.0285,
81- Human Resources Code, as added by this Act.
82- (b) As soon as practicable after the effective date of this
83- Act, the Health and Human Services Commission shall conduct a study
84- to evaluate the impacts and effectiveness of using the Medicare
85- education adjustment factor assigned under 42 C.F.R. Section
86- 412.105 in effect on the effective date of this Act to calculate the
87- medical education add-on used to reimburse teaching hospitals for
88- the provision of inpatient hospital care under Medicaid. The
89- commission shall develop and make recommendations on alternative
90- factors and methodologies for calculating and annually updating the
91- medical education add-on that:
92- (1) best recognize the higher costs incurred by
93- teaching hospitals; and
94- (2) mitigate issues identified with using the Medicare
95- education adjustment factor without reducing reimbursements to
96- urban teaching hospitals that have maintained or increased the
97- number of interns and residents enrolled in the hospitals' approved
98- teaching programs.
99- (c) Not later than December 1, 2020, the Health and Human
100- Services Commission shall report its findings and recommendations
101- under Subsection (b) of this section to the governor, the standing
102- committees of the senate and house of representatives having
103- primary jurisdiction over matters relating to state finance and
104- appropriations from the state treasury, the standing committees of
105- the senate and house of representatives having primary jurisdiction
106- over Medicaid, and the Legislative Budget Board.
107- SECTION 3. If before implementing any provision of this Act
73+ SECTION 2. If before implementing any provision of this Act
10874 a state agency determines that a waiver or authorization from a
10975 federal agency is necessary for implementation of that provision,
11076 the agency affected by the provision shall request the waiver or
11177 authorization and may delay implementing that provision until the
11278 waiver or authorization is granted.
113- SECTION 4. This Act takes effect immediately if it receives
79+ SECTION 3. This Act takes effect immediately if it receives
11480 a vote of two-thirds of all the members elected to each house, as
11581 provided by Section 39, Article III, Texas Constitution. If this
11682 Act does not receive the vote necessary for immediate effect, this
11783 Act takes effect September 1, 2019.