Texas 2019 - 86th Regular

Texas House Bill HB4548 Compare Versions

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1-H.B. No. 4548
1+By: Wray (Senate Sponsor - Birdwell) H.B. No. 4548
2+ (In the Senate - Received from the House May 7, 2019;
3+ May 8, 2019, read first time and referred to Committee on
4+ Intergovernmental Relations; May 15, 2019, reported favorably by
5+ the following vote: Yeas 7, Nays 0; May 15, 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 292C to read as follows:
1016 CHAPTER 292C. COUNTY HEALTH CARE PROVIDER PARTICIPATION PROGRAM IN
1117 CERTAIN COUNTIES WITH HOSPITAL DISTRICT BORDERING OKLAHOMA
1218 SUBCHAPTER A. GENERAL PROVISIONS
1319 Sec. 292C.001. DEFINITIONS. In this chapter:
1420 (1) "Institutional health care provider" means a
1521 nonpublic hospital that provides inpatient hospital services and
1622 that is not located within the boundaries of a hospital district.
1723 (2) "Paying hospital" means an institutional health
1824 care provider required to make a mandatory payment under this
1925 chapter.
2026 (3) "Program" means the county health care provider
2127 participation program authorized by this chapter.
2228 Sec. 292C.002. APPLICABILITY. This chapter applies only to
2329 a county that:
2430 (1) contains a hospital district that is not
2531 countywide;
2632 (2) has a population of more than 125,000; and
2733 (3) borders Oklahoma.
2834 Sec. 292C.003. COUNTY HEALTH CARE PROVIDER PARTICIPATION
2935 PROGRAM; PARTICIPATION IN PROGRAM. (a) A county health care
3036 provider participation program authorizes a county to collect a
3137 mandatory payment from each institutional health care provider
3238 located in the county to be deposited in a local provider
3339 participation fund established by the county. Money in the fund may
3440 be used by the county to fund certain intergovernmental transfers
3541 as provided by this chapter.
3642 (b) The commissioners court of a county may adopt an order
3743 authorizing the county to participate in the program, subject to
3844 the limitations provided by this chapter.
3945 Sec. 292C.004. EXPIRATION. The authority of a county to
4046 administer and operate a program under this chapter expires
4147 December 31, 2023.
4248 SUBCHAPTER B. POWERS AND DUTIES OF COMMISSIONERS COURT
4349 Sec. 292C.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
4450 PAYMENT. The commissioners court of a county may require a
4551 mandatory payment authorized under this chapter by an institutional
4652 health care provider in the county only in the manner provided by
4753 this chapter.
4854 Sec. 292C.052. MAJORITY VOTE REQUIRED. The commissioners
4955 court of a county may not authorize the county to collect a
5056 mandatory payment authorized under this chapter without an
5157 affirmative vote of a majority of the members of the commissioners
5258 court.
5359 Sec. 292C.053. RULES AND PROCEDURES. After the
5460 commissioners court of a county has voted to require a mandatory
5561 payment authorized under this chapter, the commissioners court may
5662 adopt rules relating to the administration of the mandatory
5763 payment.
5864 Sec. 292C.054. INSTITUTIONAL HEALTH CARE PROVIDER
5965 REPORTING; INSPECTION OF RECORDS. (a) The commissioners court of a
6066 county that collects a mandatory payment authorized under this
6167 chapter shall require each institutional health care provider
6268 located in the county to submit to the county a copy of any
6369 financial and utilization data required by and reported to the
6470 Department of State Health Services under Sections 311.032 and
6571 311.033 and any rules adopted by the executive commissioner of the
6672 Health and Human Services Commission to implement those sections.
6773 (b) The commissioners court of a county that collects a
6874 mandatory payment authorized under this chapter may inspect the
6975 records of an institutional health care provider to the extent
7076 necessary to ensure compliance with the requirements of Subsection
7177 (a).
7278 SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
7379 Sec. 292C.101. HEARING. (a) Each year, the commissioners
7480 court of a county that collects a mandatory payment authorized
7581 under this chapter shall hold a public hearing on the amounts of any
7682 mandatory payments that the commissioners court intends to require
7783 during the year.
7884 (b) Not later than the fifth day before the date of the
7985 hearing required under Subsection (a), the commissioners court of
8086 the county shall publish notice of the hearing in a newspaper of
8187 general circulation in the county.
8288 (c) A representative of a paying hospital is entitled to
8389 appear at the time and place designated in the public notice and to
8490 be heard regarding any matter related to the mandatory payments
8591 authorized under this chapter.
8692 Sec. 292C.102. DEPOSITORY. (a) The commissioners court of
8793 each county that collects a mandatory payment authorized under this
8894 chapter by resolution shall designate one or more banks located in
8995 the county as the depository for mandatory payments received by the
9096 county.
9197 (b) All income received by a county under this chapter,
9298 including the revenue from mandatory payments remaining after
9399 discounts and fees for assessing and collecting the payments are
94100 deducted, shall be deposited with the county depository in the
95101 county's local provider participation fund and may be withdrawn
96102 only as provided by this chapter.
97103 (c) All funds under this chapter shall be secured in the
98104 manner provided for securing county funds.
99105 Sec. 292C.103. LOCAL PROVIDER PARTICIPATION FUND;
100106 AUTHORIZED USES OF MONEY. (a) Each county that collects a
101107 mandatory payment authorized under this chapter shall create a
102108 local provider participation fund.
103109 (b) The local provider participation fund of a county
104110 consists of:
105111 (1) all revenue received by the county attributable to
106112 mandatory payments authorized under this chapter, including any
107113 penalties and interest attributable to delinquent payments;
108114 (2) money received from the Health and Human Services
109115 Commission as a refund of an intergovernmental transfer from the
110116 county to the state for the purpose of providing the nonfederal
111117 share of Medicaid supplemental payment program payments, provided
112118 that the intergovernmental transfer does not receive a federal
113119 matching payment; and
114120 (3) the earnings of the fund.
115121 (c) Money deposited to the local provider participation
116122 fund may be used only to:
117123 (1) fund intergovernmental transfers from the county
118124 to the state to provide:
119125 (A) the nonfederal share of a Medicaid
120126 supplemental payment program authorized under the state Medicaid
121127 plan, the Texas Healthcare Transformation and Quality Improvement
122128 Program waiver issued under Section 1115 of the federal Social
123129 Security Act (42 U.S.C. Section 1315), or a successor waiver
124130 program authorizing similar Medicaid supplemental payment
125131 programs; or
126132 (B) payments to Medicaid managed care
127133 organizations that are dedicated for payment to hospitals;
128134 (2) pay the administrative expenses of the county
129135 solely for activities under this chapter;
130136 (3) refund a portion of a mandatory payment collected
131137 in error from a paying hospital; and
132138 (4) refund to paying hospitals the proportionate share
133139 of money received by the county that is not used to fund the
134140 nonfederal share of Medicaid supplemental payment program
135141 payments.
136142 (d) Money deposited to the local provider participation
137143 fund may not be used to pay for the services of a consultant or a
138144 person required to register under Chapter 305, Government Code.
139145 (e) Money in the local provider participation fund may not
140146 be commingled with other county funds.
141147 (f) An intergovernmental transfer of funds described by
142148 Subsection (c)(1) and any funds received by the county as a result
143149 of an intergovernmental transfer described by that subsection may
144150 not be used by the county or any other entity to expand Medicaid
145151 eligibility under the Patient Protection and Affordable Care Act
146152 (Pub. L. No. 111-148) as amended by the Health Care and Education
147153 Reconciliation Act of 2010 (Pub. L. No. 111-152).
148154 SUBCHAPTER D. MANDATORY PAYMENTS
149155 Sec. 292C.151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL
150156 NET PATIENT REVENUE. (a) Except as provided by Subsection (e), the
151157 commissioners court of a county that collects a mandatory payment
152158 authorized under this chapter may require an annual mandatory
153159 payment to be assessed on the net patient revenue of each
154160 institutional health care provider located in the county. The
155161 commissioners court may provide for the mandatory payment to be
156162 assessed quarterly. In the first year in which the mandatory
157163 payment is required, the mandatory payment is assessed on the net
158164 patient revenue of an institutional health care provider as
159165 determined by the data reported to the Department of State Health
160166 Services under Sections 311.032 and 311.033 in the fiscal year
161167 ending in 2017 or, if the institutional health care provider did not
162168 report any data under those sections in that fiscal year, as
163169 determined by the institutional health care provider's Medicare
164170 cost report submitted for the 2017 fiscal year or for the closest
165171 subsequent fiscal year for which the provider submitted the
166172 Medicare cost report. The county shall update the amount of the
167173 mandatory payment on an annual basis.
168174 (b) The amount of a mandatory payment authorized under this
169175 chapter must be uniformly proportionate with the amount of net
170176 patient revenue generated by each paying hospital in the county. A
171177 mandatory payment authorized under this chapter may not hold
172178 harmless any institutional health care provider, as required under
173179 42 U.S.C. Section 1396b(w).
174180 (c) The commissioners court of a county that collects a
175181 mandatory payment authorized under this chapter shall set the
176182 amount of the mandatory payment. The amount of the mandatory
177183 payment required of each paying hospital may not exceed six percent
178184 of the paying hospital's net patient revenue.
179185 (d) Subject to the maximum amount prescribed by Subsection
180186 (c), the commissioners court of a county that collects a mandatory
181187 payment authorized under this chapter shall set the mandatory
182188 payments in amounts that in the aggregate will generate sufficient
183189 revenue to cover the administrative expenses of the county for
184190 activities under this chapter and to fund an intergovernmental
185191 transfer described by Section 292C.103(c)(1), except that the
186192 amount of revenue from mandatory payments used for administrative
187193 expenses of the county for activities under this chapter in a year
188194 may not exceed $20,000, plus the cost of collateralization of
189195 deposits. If the county demonstrates to the paying hospitals that
190196 the costs of administering the program under this chapter,
191197 excluding those costs associated with the collateralization of
192198 deposits, exceed $20,000 in any year, on consent of a majority of
193199 the paying hospitals, the county may use additional revenue from
194200 mandatory payments received under this chapter to compensate the
195201 county for its administrative expenses. A paying hospital may not
196202 unreasonably withhold consent to compensate the county for
197203 administrative expenses.
198204 (e) A paying hospital may not add a mandatory payment
199205 required under this section as a surcharge to a patient.
200206 Sec. 292C.152. ASSESSMENT AND COLLECTION OF MANDATORY
201207 PAYMENTS. The county may collect or contract for the assessment and
202208 collection of mandatory payments authorized under this chapter.
203209 Sec. 292C.153. INTEREST, PENALTIES, AND DISCOUNTS.
204210 Interest, penalties, and discounts on mandatory payments required
205211 under this chapter are governed by the law applicable to county ad
206212 valorem taxes.
207213 Sec. 292C.154. PURPOSE; CORRECTION OF INVALID PROVISION OR
208214 PROCEDURE. (a) The purpose of this chapter is to generate revenue
209215 by collecting from institutional health care providers a mandatory
210216 payment to be used to provide the nonfederal share of a Medicaid
211217 supplemental payment program.
212218 (b) To the extent any provision or procedure under this
213219 chapter causes a mandatory payment authorized under this chapter to
214220 be ineligible for federal matching funds, the county may provide by
215221 rule for an alternative provision or procedure that conforms to the
216222 requirements of the federal Centers for Medicare and Medicaid
217223 Services.
218224 SECTION 2. Subtitle D, Title 4, Health and Safety Code, is
219225 amended by adding Chapter 296A to read as follows:
220226 CHAPTER 296A. COUNTY HEALTH CARE PROVIDER PARTICIPATION PROGRAM IN
221227 CERTAIN COUNTIES BORDERING TWO POPULOUS COUNTIES
222228 SUBCHAPTER A. GENERAL PROVISIONS
223229 Sec. 296A.001. DEFINITIONS. In this chapter:
224230 (1) "Institutional health care provider" means a
225231 nonpublic hospital that provides inpatient hospital services.
226232 (2) "Paying hospital" means an institutional health
227233 care provider required to make a mandatory payment under this
228234 chapter.
229235 (3) "Program" means the county health care provider
230236 participation program authorized by this chapter.
231237 Sec. 296A.002. APPLICABILITY. This chapter applies only to
232238 a county that:
233239 (1) is not served by a hospital district or a public
234240 hospital; and
235241 (2) has a population of less than 600,000 and borders
236242 two counties both with populations of one million or more.
237243 Sec. 296A.003. COUNTY HEALTH CARE PROVIDER PARTICIPATION
238244 PROGRAM; PARTICIPATION IN PROGRAM. (a) A county health care
239245 provider participation program authorizes a county to collect a
240246 mandatory payment from each institutional health care provider
241247 located in the county to be deposited in a local provider
242248 participation fund established by the county. Money in the fund may
243249 be used by the county to fund certain intergovernmental transfers
244250 and indigent care programs as provided by this chapter.
245251 (b) The commissioners court may adopt an order authorizing a
246252 county to participate in the program, subject to the limitations
247253 provided by this chapter.
248254 SUBCHAPTER B. POWERS AND DUTIES OF COMMISSIONERS COURT
249255 Sec. 296A.051. LIMITATION ON AUTHORITY TO REQUIRE MANDATORY
250256 PAYMENT. The commissioners court of a county may require a
251257 mandatory payment authorized under this chapter by an institutional
252258 health care provider in the county only in the manner provided by
253259 this chapter.
254260 Sec. 296A.052. MAJORITY VOTE REQUIRED. The commissioners
255261 court of a county may not authorize the county to collect a
256262 mandatory payment authorized under this chapter without an
257263 affirmative vote of a majority of the members of the commissioners
258264 court.
259265 Sec. 296A.053. RULES AND PROCEDURES. After the
260266 commissioners court has voted to require a mandatory payment
261267 authorized under this chapter, the commissioners court may adopt
262268 rules relating to the administration of the mandatory payment.
263269 Sec. 296A.054. INSTITUTIONAL HEALTH CARE PROVIDER
264270 REPORTING; INSPECTION OF RECORDS. (a) The commissioners court of a
265271 county that collects a mandatory payment authorized under this
266272 chapter shall require each institutional health care provider to
267273 submit to the county a copy of any financial and utilization data
268274 required by and reported to the Department of State Health Services
269275 under Sections 311.032 and 311.033 and any rules adopted by the
270276 executive commissioner of the Health and Human Services Commission
271277 to implement those sections.
272278 (b) The commissioners court of a county that collects a
273279 mandatory payment authorized under this chapter may inspect the
274280 records of an institutional health care provider to the extent
275281 necessary to ensure compliance with the requirements of Subsection
276282 (a).
277283 SUBCHAPTER C. GENERAL FINANCIAL PROVISIONS
278284 Sec. 296A.101. HEARING. (a) Each year, the commissioners
279285 court of a county that collects a mandatory payment authorized
280286 under this chapter shall hold a public hearing on the amounts of any
281287 mandatory payments that the commissioners court intends to require
282288 during the year and how the revenue derived from those payments is
283289 to be spent.
284290 (b) Not later than the 10th day before the date of the
285291 hearing required under Subsection (a), the commissioners court of
286292 the county shall publish notice of the hearing in a newspaper of
287293 general circulation in the county.
288294 (c) A representative of a paying hospital is entitled to
289295 appear at the time and place designated in the public notice and to
290296 be heard regarding any matter related to the mandatory payments
291297 authorized under this chapter.
292298 Sec. 296A.102. DEPOSITORY. (a) The commissioners court of
293299 each county that collects a mandatory payment authorized under this
294300 chapter by resolution shall designate one or more banks located in
295301 the county as the depository for mandatory payments received by the
296302 county. A bank designated as a depository serves for two years or
297303 until a successor is designated.
298304 (b) All income received by a county under this chapter,
299305 including the revenue from mandatory payments remaining after
300306 discounts and fees for assessing and collecting the payments are
301307 deducted, shall be deposited with the county depository in the
302308 county's local provider participation fund and may be withdrawn
303309 only as provided by this chapter.
304310 (c) All funds under this chapter shall be secured in the
305311 manner provided for securing county funds.
306312 Sec. 296A.103. LOCAL PROVIDER PARTICIPATION FUND;
307313 AUTHORIZED USES OF MONEY. (a) Each county that collects a
308314 mandatory payment authorized under this chapter shall create a
309315 local provider participation fund.
310316 (b) The local provider participation fund of a county
311317 consists of:
312318 (1) all revenue received by the county attributable to
313319 mandatory payments authorized under this chapter, including any
314320 penalties and interest attributable to delinquent payments;
315321 (2) money received from the Health and Human Services
316322 Commission as a refund of an intergovernmental transfer from the
317323 county to the state for the purpose of providing the nonfederal
318324 share of Medicaid supplemental payment program payments, provided
319325 that the intergovernmental transfer does not receive a federal
320326 matching payment; and
321327 (3) the earnings of the fund.
322328 (c) Money deposited to the local provider participation
323329 fund may be used only to:
324330 (1) fund intergovernmental transfers from the county
325331 to the state to provide:
326332 (A) the nonfederal share of a Medicaid
327333 supplemental payment program authorized under the state Medicaid
328334 plan, the Texas Healthcare Transformation and Quality Improvement
329335 Program waiver issued under Section 1115 of the federal Social
330336 Security Act (42 U.S.C. Section 1315), or a successor waiver
331337 program authorizing similar Medicaid supplemental payment
332338 programs; or
333339 (B) payments to Medicaid managed care
334340 organizations that are dedicated for payment to hospitals;
335341 (2) subsidize indigent programs;
336342 (3) pay the administrative expenses of the county for
337343 activities under this chapter;
338344 (4) refund a portion of a mandatory payment collected
339345 in error from a paying hospital; and
340346 (5) refund to paying hospitals the proportionate share
341347 of money received by the county from the Health and Human Services
342348 Commission that is not used to fund the nonfederal share of Medicaid
343349 supplemental payment program payments.
344350 (d) Money in the local provider participation fund may not
345351 be commingled with other county funds.
346352 (e) An intergovernmental transfer of funds described by
347353 Subsection (c)(1) and any funds received by the county as a result
348354 of an intergovernmental transfer described by Subsection (c)(1) may
349355 not be used by the county or any other entity to expand Medicaid
350356 eligibility under the Patient Protection and Affordable Care Act
351357 (Pub. L. No. 111-148) as amended by the Health Care and Education
352358 Reconciliation Act of 2010 (Pub. L. No. 111-152).
353359 SUBCHAPTER D. MANDATORY PAYMENTS
354360 Sec. 296A.151. MANDATORY PAYMENTS BASED ON PAYING HOSPITAL
355361 NET PATIENT REVENUE. (a) Except as provided by Subsection (e), the
356362 commissioners court of a county that collects a mandatory payment
357363 authorized under this chapter may require an annual mandatory
358364 payment to be assessed on the net patient revenue of each
359365 institutional health care provider located in the county. The
360366 commissioners court may provide for the mandatory payment to be
361367 assessed quarterly. In the first year in which the mandatory
362368 payment is required, the mandatory payment is assessed on the net
363369 patient revenue of an institutional health care provider as
364370 determined by the data reported to the Department of State Health
365371 Services under Sections 311.032 and 311.033 in the fiscal year
366372 ending in 2017 or, if the institutional health care provider did not
367373 report any data under those sections in that fiscal year, as
368374 determined by the institutional health care provider's Medicare
369375 cost report submitted for the 2017 fiscal year or for the closest
370376 subsequent fiscal year for which the provider submitted the
371377 Medicare cost report. The county shall update the amount of the
372378 mandatory payment on an annual basis.
373379 (b) The amount of a mandatory payment authorized under this
374380 chapter must be uniformly proportionate with the amount of net
375381 patient revenue generated by each paying hospital in the county. A
376382 mandatory payment authorized under this chapter may not hold
377383 harmless any institutional health care provider, as required under
378384 42 U.S.C. Section 1396b(w).
379385 (c) The commissioners court of a county that collects a
380386 mandatory payment authorized under this chapter shall set the
381387 amount of the mandatory payment. The amount of the mandatory
382388 payment required of each paying hospital may not exceed an amount
383389 that, when added to the amount of the mandatory payments required
384390 from all other paying hospitals in the county, equals an amount of
385391 revenue that exceeds six percent of the aggregate net patient
386392 revenue of all paying hospitals in the county.
387393 (d) Subject to the maximum amount prescribed by Subsection
388394 (c), the commissioners court of a county that collects a mandatory
389395 payment authorized under this chapter shall set the mandatory
390396 payments in amounts that in the aggregate will generate sufficient
391397 revenue to cover the administrative expenses of the county for
392398 activities under this chapter, to fund the nonfederal share of a
393399 Medicaid supplemental payment program, and to pay for indigent
394400 programs, except that the amount of revenue from mandatory payments
395401 used for administrative expenses of the county for activities under
396402 this chapter in a year may not exceed the lesser of four percent of
397403 the total revenue generated from the mandatory payment or $20,000.
398404 (e) A paying hospital may not add a mandatory payment
399405 required under this section as a surcharge to a patient.
400406 Sec. 296A.152. ASSESSMENT AND COLLECTION OF MANDATORY
401407 PAYMENTS. The county may collect or contract for the assessment and
402408 collection of mandatory payments authorized under this chapter.
403409 Sec. 296A.153. INTEREST, PENALTIES, AND DISCOUNTS.
404410 Interest, penalties, and discounts on mandatory payments required
405411 under this chapter are governed by the law applicable to county ad
406412 valorem taxes.
407413 Sec. 296A.154. PURPOSE; CORRECTION OF INVALID PROVISION OR
408414 PROCEDURE. (a) The purpose of this chapter is to generate revenue
409415 by collecting from institutional health care providers a mandatory
410416 payment to be used to provide the nonfederal share of a Medicaid
411417 supplemental payment program.
412418 (b) To the extent any provision or procedure under this
413419 chapter causes a mandatory payment authorized under this chapter to
414420 be ineligible for federal matching funds, the county may provide by
415421 rule for an alternative provision or procedure that conforms to the
416422 requirements of the federal Centers for Medicare and Medicaid
417423 Services.
418424 SECTION 3. As soon as practicable after the expiration of
419425 the authority of a county to administer and operate a health care
420426 provider participation program under Chapter 292C, Health and
421427 Safety Code, as added by this Act, the commissioners court of the
422428 county shall transfer to the institutional health care providers in
423429 the county a proportionate share of any remaining funds in any local
424430 provider participation fund created by the county under Section
425431 292C.103, Health and Safety Code, as added by this Act.
426432 SECTION 4. If before implementing any provision of this Act
427433 a state agency determines that a waiver or authorization from a
428434 federal agency is necessary for implementation of that provision,
429435 the agency affected by the provision shall request the waiver or
430436 authorization and may delay implementing that provision until the
431437 waiver or authorization is granted.
432438 SECTION 5. This Act takes effect immediately if it receives
433439 a vote of two-thirds of all the members elected to each house, as
434440 provided by Section 39, Article III, Texas Constitution. If this
435441 Act does not receive the vote necessary for immediate effect, this
436442 Act takes effect September 1, 2019.
437- ______________________________ ______________________________
438- President of the Senate Speaker of the House
439- I certify that H.B. No. 4548 was passed by the House on May 7,
440- 2019, by the following vote: Yeas 142, Nays 6, 1 present, not
441- voting.
442- ______________________________
443- Chief Clerk of the House
444- I certify that H.B. No. 4548 was passed by the Senate on May
445- 19, 2019, by the following vote: Yeas 31, Nays 0.
446- ______________________________
447- Secretary of the Senate
448- APPROVED: _____________________
449- Date
450- _____________________
451- Governor
443+ * * * * *