6 | 3 | | |
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7 | 4 | | |
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8 | 5 | | A BILL TO BE ENTITLED |
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9 | 6 | | AN ACT |
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10 | 7 | | relating to the reimbursement of certain urban teaching hospitals |
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11 | 8 | | for the provision of inpatient hospital care under Medicaid. |
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12 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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13 | 10 | | SECTION 1. Subchapter B, Chapter 32, Human Resources Code, |
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14 | 11 | | is amended by adding Section 32.0285 to read as follows: |
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15 | 12 | | Sec. 32.0285. CALCULATION OF MEDICAL EDUCATION ADD-ON FOR |
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16 | 13 | | REIMBURSEMENT OF CERTAIN URBAN TEACHING HOSPITALS. (a) In this |
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17 | 14 | | section: |
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18 | 15 | | (1) "Base standard dollar amount" means the |
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19 | 16 | | standardized payment amount calculated by the commission for costs |
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20 | 17 | | incurred by prospectively paid hospitals in this state for |
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21 | 18 | | providing inpatient hospital care under Medicaid. |
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22 | 19 | | (2) "Children's hospital" means a hospital designated |
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23 | 20 | | by the Centers for Medicare and Medicaid Services as a children's |
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24 | 21 | | hospital. |
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25 | 22 | | (3) "Medical education add-on" means an adjustment to |
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26 | 23 | | the base standard dollar amount for an urban teaching hospital to |
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27 | 24 | | reflect higher patient care costs relative to nonteaching urban |
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28 | 25 | | hospitals. |
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29 | 26 | | (4) "Rural hospital" means a hospital enrolled as a |
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30 | 27 | | Medicaid provider that: |
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31 | 28 | | (A) is located in a county with a population of |
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32 | 29 | | not more than 60,000; |
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33 | 30 | | (B) is designated by the Centers for Medicare and |
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34 | 31 | | Medicaid Services as a critical access hospital, sole community |
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35 | 32 | | hospital, or rural referral center and is not located in an area |
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36 | 33 | | defined by the United States Office of Management and Budget as a |
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37 | 34 | | metropolitan statistical area; or |
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38 | 35 | | (C) meets all of the following criteria: |
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39 | 36 | | (i) has 100 or fewer beds; |
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40 | 37 | | (ii) is designated by the Centers for |
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41 | 38 | | Medicare and Medicaid Services as a critical access hospital, sole |
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42 | 39 | | community hospital, or rural referral center; and |
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43 | 40 | | (iii) is located in an area defined by the |
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44 | 41 | | United States Office of Management and Budget as a metropolitan |
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45 | 42 | | statistical area. |
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46 | 43 | | (5) "State-owned teaching hospital" means: |
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47 | 44 | | (A) The University of Texas Medical Branch at |
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48 | 45 | | Galveston; |
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49 | 46 | | (B) The University of Texas Health Science Center |
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50 | 47 | | at Tyler; and |
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51 | 48 | | (C) The University of Texas M.D. Anderson Cancer |
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52 | 49 | | Center. |
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53 | 50 | | (6) "Teaching hospital" means a hospital that incurs |
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54 | 51 | | indirect costs for operating graduate medical education programs |
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55 | 52 | | and for which the Centers for Medicare and Medicaid Services has |
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56 | 53 | | calculated and assigned a percentage Medicare education adjustment |
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57 | 54 | | factor under 42 C.F.R. Section 412.105. |
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58 | 55 | | (7) "Urban hospital" means a hospital that: |
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59 | 56 | | (A) is located in an area defined by the United |
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60 | 57 | | States Office of Management and Budget as a metropolitan |
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61 | 58 | | statistical area; and |
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62 | 59 | | (B) is not a rural hospital, children's hospital, |
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63 | 60 | | state-owned teaching hospital, or freestanding psychiatric |
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64 | 61 | | facility. |
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65 | 62 | | (b) To the extent permitted by federal law, in order to |
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66 | 63 | | ensure that urban teaching hospitals are accurately reimbursed for |
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67 | 64 | | the provision of inpatient hospital care to recipients under |
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68 | 65 | | Medicaid, the commission shall at least annually update the |
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69 | 66 | | education adjustment factor used to calculate the medical education |
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70 | 67 | | add-on using the most current data available, including: |
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71 | 68 | | (1) data related to the number of interns and |
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72 | 69 | | residents enrolled in a hospital's approved teaching program; and |
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73 | 70 | | (2) the Medicare education adjustment factor assigned |
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74 | 71 | | under 42 C.F.R. Section 412.105 in effect at the time the commission |
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75 | 72 | | makes the update. |
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76 | | - | SECTION 2. (a) In this section: |
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77 | | - | (1) "Medicaid" has the meaning assigned by Section |
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78 | | - | 531.001, Government Code. |
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79 | | - | (2) "Medical education add-on," "teaching hospital," |
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80 | | - | and "urban hospital" have the meanings assigned by Section 32.0285, |
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81 | | - | Human Resources Code, as added by this Act. |
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82 | | - | (b) As soon as practicable after the effective date of this |
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83 | | - | Act, the Health and Human Services Commission shall conduct a study |
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84 | | - | to evaluate the impacts and effectiveness of using the Medicare |
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85 | | - | education adjustment factor assigned under 42 C.F.R. Section |
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86 | | - | 412.105 in effect on the effective date of this Act to calculate the |
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87 | | - | medical education add-on used to reimburse teaching hospitals for |
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88 | | - | the provision of inpatient hospital care under Medicaid. The |
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89 | | - | commission shall develop and make recommendations on alternative |
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90 | | - | factors and methodologies for calculating and annually updating the |
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91 | | - | medical education add-on that: |
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92 | | - | (1) best recognize the higher costs incurred by |
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93 | | - | teaching hospitals; and |
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94 | | - | (2) mitigate issues identified with using the Medicare |
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95 | | - | education adjustment factor without reducing reimbursements to |
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96 | | - | urban teaching hospitals that have maintained or increased the |
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97 | | - | number of interns and residents enrolled in the hospitals' approved |
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98 | | - | teaching programs. |
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99 | | - | (c) Not later than December 1, 2020, the Health and Human |
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100 | | - | Services Commission shall report its findings and recommendations |
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101 | | - | under Subsection (b) of this section to the governor, the standing |
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102 | | - | committees of the senate and house of representatives having |
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103 | | - | primary jurisdiction over matters relating to state finance and |
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104 | | - | appropriations from the state treasury, the standing committees of |
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105 | | - | the senate and house of representatives having primary jurisdiction |
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106 | | - | over Medicaid, and the Legislative Budget Board. |
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107 | | - | SECTION 3. If before implementing any provision of this Act |
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| 73 | + | SECTION 2. If before implementing any provision of this Act |
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