Texas 2019 - 86th Regular

Texas Senate Bill SB2239 Compare Versions

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11 86R10228 JG-D
22 By: Kolkhorst S.B. No. 2239
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the operation and administration of certain health and
88 human services programs, including the Medicaid managed care
99 program.
1010 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1111 SECTION 1. Section 531.001, Government Code, is amended by
1212 adding Subdivision (4-c) to read as follows:
1313 (4-c) "Medicaid managed care organization" means a
1414 managed care organization as defined by Section 533.001 that
1515 contracts with the commission under Chapter 533 to provide health
1616 care services to Medicaid recipients.
1717 SECTION 2. Subchapter B, Chapter 531, Government Code, is
1818 amended by adding Section 531.02112 to read as follows:
1919 Sec. 531.02112. PROCEDURE FOR IMPLEMENTING CHANGES TO
2020 PAYMENT RATES UNDER MEDICAID AND CHILD HEALTH PLAN PROGRAM. (a) In
2121 adopting rules and standards related to the determination of fees,
2222 charges, and rates for payments under Medicaid and the child health
2323 plan program, the executive commissioner, in consultation with the
2424 advisory committee established under Subsection (b), shall adopt
2525 rules to ensure that changes to the fees, charges, and rates are
2626 implemented in accordance with this section and in a way that
2727 minimizes administrative complexity and financial uncertainty.
2828 (b) The executive commissioner shall establish an advisory
2929 committee to provide input for the adoption of rules and standards
3030 that comply with this section. The advisory committee is composed
3131 of representatives of managed care organizations and providers
3232 under Medicaid and the child health plan program. The advisory
3333 committee is abolished on the date the rules that comply with this
3434 section are adopted. This subsection expires September 1, 2021.
3535 (c) Before implementing a change to the fees, charges, and
3636 rates for payments under Medicaid or the child health plan program,
3737 the commission shall:
3838 (1) before or at the time notice of the proposed change
3939 is published under Subdivision (2), notify managed care
4040 organizations and the entity serving as the state's Medicaid claims
4141 administrator under the Medicaid fee-for-service delivery model of
4242 the proposed change;
4343 (2) publish notice of the proposed change:
4444 (A) for public comment in the Texas Register for
4545 a period of not less than 60 days; and
4646 (B) on the commission's and state Medicaid claims
4747 administrator's Internet websites during the period specified
4848 under Paragraph (A);
4949 (3) publish notice of a final determination to make
5050 the proposed change:
5151 (A) in the Texas Register for a period of not less
5252 than 30 days before the change becomes effective; and
5353 (B) on the commission's and state Medicaid claims
5454 administrator's Internet websites during the period specified
5555 under Paragraph (A); and
5656 (4) provide managed care organizations and the entity
5757 serving as the state's Medicaid claims administrator under the
5858 Medicaid fee-for-service delivery model with a period of not less
5959 than 30 days before the effective date of the final change to make
6060 any necessary administrative or systems adjustments to implement
6161 the change.
6262 (d) If changes to the fees, charges, or rates for payments
6363 under Medicaid or the child health plan program are mandated by the
6464 legislature or federal government on a date that does not fall
6565 within the time frame for the implementation of those changes
6666 described by this section, the commission shall:
6767 (1) prorate the amount of the change over the fee,
6868 charge, or rate period; and
6969 (2) publish the proration schedule described by
7070 Subdivision (1) in the Texas Register along with the notice
7171 provided under Subsection (c)(3).
7272 (e) This section does not apply to changes to the fees,
7373 charges, or rates for payments made to a nursing facility.
7474 SECTION 3. Section 531.02118, Government Code, is amended
7575 by amending Subsection (c) and adding Subsections (e) and (f) to
7676 read as follows:
7777 (c) In streamlining the Medicaid provider credentialing
7878 process under this section, the commission may designate a
7979 centralized credentialing entity and, if a centralized
8080 credentialing entity is designated, shall [may]:
8181 (1) share information in the database established
8282 under Subchapter C, Chapter 32, Human Resources Code, with the
8383 centralized credentialing entity to reduce the submission of
8484 duplicative information or documents necessary for both Medicaid
8585 enrollment and credentialing; and
8686 (2) require all Medicaid managed care organizations
8787 [contracting with the commission to provide health care services to
8888 Medicaid recipients under a managed care plan issued by the
8989 organization] to use the centralized credentialing entity as a hub
9090 for the collection and sharing of information.
9191 (e) To the extent permitted by federal law, the commission
9292 shall use available Medicare data to streamline the enrollment and
9393 credentialing of Medicaid providers by reducing the submission of
9494 duplicative information or documents.
9595 (f) The commission shall develop and implement a process to
9696 expedite the Medicaid provider enrollment process for a health care
9797 provider who is providing health care services through a single
9898 case agreement to a Medicaid recipient with primary insurance
9999 coverage. The commission shall use a provider's national provider
100100 identifier number to enroll a provider under this subsection. In
101101 this subsection, "national provider identifier number" has the
102102 meaning assigned by Section 531.021182.
103103 SECTION 4. Subchapter B, Chapter 531, Government Code, is
104104 amended by adding Section 531.021182 to read as follows:
105105 Sec. 531.021182. USE OF NATIONAL PROVIDER IDENTIFIER
106106 NUMBER. (a) In this section, "national provider identifier
107107 number" means the national provider identifier number required
108108 under Section 1128J(e), Social Security Act (42 U.S.C. Section
109109 1320a-7k(e)).
110110 (b) Beginning September 1, 2020, the commission:
111111 (1) may not use a state-issued provider identifier
112112 number to identify a Medicaid provider;
113113 (2) shall use only a national provider identifier
114114 number to identify a Medicaid provider; and
115115 (3) must allow a Medicaid provider to bill for
116116 Medicaid services using the provider's national provider
117117 identifier number.
118118 SECTION 5. Section 531.024(b), Government Code, is amended
119119 to read as follows:
120120 (b) The rules promulgated under Subsection (a)(7) must
121121 provide due process to an applicant for Medicaid services or
122122 programs and to a Medicaid recipient who seeks a Medicaid service,
123123 including a service that requires prior authorization. The rules
124124 must provide the protections for applicants and recipients required
125125 by 42 C.F.R. Part 431, Subpart E, including requiring that:
126126 (1) the written notice to an individual of the
127127 individual's right to a hearing must:
128128 (A) contain a clear [an] explanation of:
129129 (i) the adverse determination and the
130130 circumstances under which Medicaid is continued if a hearing is
131131 requested; and
132132 (ii) the fair hearing process, including
133133 the individual's ability to use an independent review process; and
134134 (B) be mailed at least 10 days before the date the
135135 individual's Medicaid eligibility or service is scheduled to be
136136 terminated, suspended, or reduced, except as provided by 42 C.F.R.
137137 Section 431.213 or 431.214; and
138138 (2) if a hearing is requested before the date a
139139 Medicaid recipient's service, including a service that requires
140140 prior authorization, is scheduled to be terminated, suspended, or
141141 reduced, the agency may not take that proposed action before a
142142 decision is rendered after the hearing unless:
143143 (A) it is determined at the hearing that the sole
144144 issue is one of federal or state law or policy; and
145145 (B) the agency promptly informs the recipient in
146146 writing that services are to be terminated, suspended, or reduced
147147 pending the hearing decision.
148148 SECTION 6. Subchapter B, Chapter 531, Government Code, is
149149 amended by adding Sections 531.024162, 531.0319, and 531.0602 to
150150 read as follows:
151151 Sec. 531.024162. NOTICE REQUIREMENTS REGARDING DENIAL OF
152152 COVERAGE OR PRIOR AUTHORIZATION. The commission shall ensure that
153153 notice sent by the commission or a Medicaid managed care
154154 organization to a Medicaid recipient or provider regarding the
155155 denial of coverage or prior authorization for a service includes:
156156 (1) information required by federal law;
157157 (2) a clear and easy-to-understand explanation of the
158158 reason for the denial for the recipient; and
159159 (3) a clinical explanation of the reason for the
160160 denial for the provider.
161161 Sec. 531.0319. MEDICAID MEDICAL POLICY MANUAL. (a) The
162162 commission shall develop and publish on the commission's Internet
163163 website a Medicaid medical policy manual. The manual must:
164164 (1) be updated monthly, as necessary;
165165 (2) primarily address the managed care delivery model
166166 for Medicaid benefits;
167167 (3) include a description of each service covered
168168 under Medicaid, including the scope, duration, and amount of
169169 coverage; and
170170 (4) direct Medicaid providers to the Medicaid managed
171171 care manual that applies to the provider for specific prior
172172 authorization and billing policies.
173173 (b) The commission shall publish the Medicaid medical
174174 policy manual not later than January 1, 2020. Beginning on that
175175 date, the commission may not use any prior Medicaid procedures
176176 manual for providers. This subsection expires September 1, 2021.
177177 Sec. 531.0602. MEDICALLY DEPENDENT CHILDREN (MDCP) WAIVER
178178 PROGRAM REASSESSMENTS. To the extent allowed by federal law, the
179179 commission shall require that a child participating in the
180180 medically dependent children (MDCP) waiver program be reassessed to
181181 determine whether the child meets the level of care criteria for
182182 medical necessity for nursing facility care only if the child has a
183183 significant change in function that may affect the medical
184184 necessity for that level of care instead of requiring that the
185185 reassessment be made annually.
186186 SECTION 7. Section 531.072(c), Government Code, is amended
187187 to read as follows:
188188 (c) In making a decision regarding the placement of a drug
189189 on each of the preferred drug lists, the commission shall consider:
190190 (1) the recommendations of the Drug Utilization Review
191191 Board under Section 531.0736;
192192 (2) the clinical efficacy of the drug;
193193 (3) the price of competing drugs after deducting any
194194 federal and state rebate amounts; [and]
195195 (4) the impact on recipient health outcomes and
196196 continuity of care; and
197197 (5) program benefit offerings solely or in conjunction
198198 with rebates and other pricing information.
199199 SECTION 8. Section 531.0736(c), Government Code, is amended
200200 to read as follows:
201201 (c) The executive commissioner shall determine the
202202 composition of the board, which must:
203203 (1) comply with applicable federal law, including 42
204204 C.F.R. Section 456.716;
205205 (2) include five [two] representatives of managed care
206206 organizations to represent each managed care product [as nonvoting
207207 members], at least one of whom must be a physician and one of whom
208208 must be a pharmacist;
209209 (3) include at least 17 physicians and pharmacists
210210 who:
211211 (A) provide services across the entire
212212 population of Medicaid recipients and represent different
213213 specialties, including at least one of each of the following types
214214 of physicians:
215215 (i) a pediatrician;
216216 (ii) a primary care physician;
217217 (iii) an obstetrician and gynecologist;
218218 (iv) a child and adolescent psychiatrist;
219219 and
220220 (v) an adult psychiatrist; and
221221 (B) have experience in either developing or
222222 practicing under a preferred drug list; and
223223 (4) include a consumer advocate who represents
224224 Medicaid recipients.
225225 SECTION 9. Subchapter A, Chapter 533, Government Code, is
226226 amended by adding Sections 533.00284 and 533.00285 to read as
227227 follows:
228228 Sec. 533.00284. ADOPTION OF PRIOR AUTHORIZATION PRACTICE
229229 GUIDELINES; ACCESSIBILITY. (a) In developing medical policies and
230230 standards for making medical necessity determinations for prior
231231 authorizations, each Medicaid managed care organization shall:
232232 (1) in consultation with health care providers in the
233233 organization's provider network, adopt practice guidelines that:
234234 (A) are based on valid and reliable clinical
235235 evidence or the medical consensus among health care professionals
236236 who practice in the applicable field; and
237237 (B) take into consideration the health care needs
238238 of the recipients enrolled in a managed care plan offered by the
239239 organization; and
240240 (2) develop a written process describing the method
241241 for periodically reviewing and amending utilization management
242242 clinical review criteria.
243243 (b) A Medicaid managed care organization shall annually
244244 review and, as necessary, update the practice guidelines adopted
245245 under Subsection (a)(1).
246246 (c) The executive commissioner by rule shall require each
247247 Medicaid managed care organization or other entity responsible for
248248 authorizing coverage for health care services under Medicaid to
249249 ensure that:
250250 (1) coverage criteria and prior authorization
251251 requirements are:
252252 (A) made available to recipients and providers on
253253 the organization's or entity's Internet website; and
254254 (B) communicated in a clear, concise, and easily
255255 understandable manner;
256256 (2) any necessary or supporting documents needed to
257257 obtain prior authorization are made available on a web page of the
258258 organization's or entity's Internet website accessible through a
259259 clearly marked link to the web page; and
260260 (3) the process for contacting the organization or
261261 entity for clarification or assistance in obtaining prior
262262 authorization is not arduous or overly burdensome to a recipient or
263263 provider.
264264 Sec. 533.00285. PRIOR AUTHORIZATION PROCEDURES. In
265265 addition to the requirements of Section 533.005, a contract between
266266 a Medicaid managed care organization and the commission described
267267 by that section must include:
268268 (1) time frames for the prior authorization of health
269269 care services that enable Medicaid providers to:
270270 (A) deliver those services in a timely manner;
271271 and
272272 (B) request a peer review regarding the prior
273273 authorization before the organization makes a final decision on the
274274 prior authorization; and
275275 (2) a requirement that the organization:
276276 (A) has appropriate personnel reasonably
277277 available at a toll-free telephone number to receive prior
278278 authorization requests between 6 a.m. and 6 p.m. central time
279279 Monday through Friday on each day that is not a legal holiday and
280280 between 9 a.m. and noon central time on Saturday and Sunday; and
281281 (B) has a telephone system capable of receiving
282282 and recording incoming telephone calls for prior authorization
283283 requests after 6 p.m. central time Monday through Friday and after
284284 noon central time on Saturday and Sunday.
285285 SECTION 10. Section 533.0071, Government Code, is amended
286286 to read as follows:
287287 Sec. 533.0071. ADMINISTRATION OF CONTRACTS. The commission
288288 shall make every effort to improve the administration of contracts
289289 with Medicaid managed care organizations. To improve the
290290 administration of these contracts, the commission shall:
291291 (1) ensure that the commission has appropriate
292292 expertise and qualified staff to effectively manage contracts with
293293 managed care organizations under the Medicaid managed care program;
294294 (2) evaluate options for Medicaid payment recovery
295295 from managed care organizations if the enrollee dies or is
296296 incarcerated or if an enrollee is enrolled in more than one state
297297 program or is covered by another liable third party insurer;
298298 (3) maximize Medicaid payment recovery options by
299299 contracting with private vendors to assist in the recovery of
300300 capitation payments, payments from other liable third parties, and
301301 other payments made to managed care organizations with respect to
302302 enrollees who leave the managed care program;
303303 (4) decrease the administrative burdens of managed
304304 care for the state, the managed care organizations, and the
305305 providers under managed care networks to the extent that those
306306 changes are compatible with state law and existing Medicaid managed
307307 care contracts, including decreasing those burdens by:
308308 (A) where possible, decreasing the duplication
309309 of administrative reporting and process requirements for the
310310 managed care organizations and providers, such as requirements for
311311 the submission of encounter data, quality reports, historically
312312 underutilized business reports, and claims payment summary
313313 reports;
314314 (B) allowing managed care organizations to
315315 provide updated address information directly to the commission for
316316 correction in the state system;
317317 (C) promoting consistency and uniformity among
318318 managed care organization policies, including policies relating to
319319 the preauthorization process, lengths of hospital stays, filing
320320 deadlines, levels of care, and case management services;
321321 (D) reviewing the appropriateness of primary
322322 care case management requirements in the admission and clinical
323323 criteria process, such as requirements relating to including a
324324 separate cover sheet for all communications, submitting
325325 handwritten communications instead of electronic or typed review
326326 processes, and admitting patients listed on separate
327327 notifications; and
328328 (E) providing a portal through which providers in
329329 any managed care organization's provider network may submit acute
330330 care services and long-term services and supports claims; and
331331 (5) ensure that the commission's fair hearing process
332332 and [reserve the right to amend] the managed care organization's
333333 process for resolving recipient and provider appeals of denials
334334 based on medical necessity [to] include an independent review
335335 process established by the commission for final determination of
336336 these disputes.
337337 SECTION 11. Section 533.0076(c), Government Code, is
338338 amended to read as follows:
339339 (c) The commission shall allow a recipient who is enrolled
340340 in a managed care plan under this chapter to disenroll from that
341341 plan and enroll in another managed care plan[:
342342 [(1)] at any time for cause in accordance with federal
343343 law[; and
344344 [(2) once for any reason after the periods described
345345 by Subsections (a) and (b)].
346346 SECTION 12. Subchapter A, Chapter 533, Government Code, is
347347 amended by adding Sections 533.038 and 533.039 to read as follows:
348348 Sec. 533.038. COORDINATION OF BENEFITS. (a) In this
349349 section, "Medicaid wrap-around benefit" means a Medicaid-covered
350350 service, including a pharmacy or medical benefit, that is provided
351351 to a recipient with both Medicaid and primary health benefit plan
352352 coverage when the recipient has exceeded the primary health benefit
353353 plan coverage limit or when the service is not covered by the
354354 primary health benefit plan issuer.
355355 (b) The commission, in coordination with Medicaid managed
356356 care organizations, shall develop and adopt a clear policy for a
357357 Medicaid managed care organization to ensure the coordination and
358358 timely delivery of Medicaid wrap-around benefits for recipients
359359 with both primary health benefit plan coverage and Medicaid
360360 coverage.
361361 (c) To further assist with the coordination of benefits, the
362362 commission, in coordination with Medicaid managed care
363363 organizations, shall develop and maintain a list of services that
364364 are not traditionally covered by primary health benefit plan
365365 coverage that a Medicaid managed care organization may approve
366366 without having to coordinate with the primary health benefit plan
367367 issuer and that can be resolved through third-party liability
368368 resolution processes. The commission shall review and update the
369369 list quarterly.
370370 (d) A Medicaid managed care organization that in good faith
371371 and following commission policies provides coverage for a Medicaid
372372 wrap-around benefit shall include the cost of providing the benefit
373373 in the organization's financial reports. The commission shall
374374 include the reported costs in computing capitation rates for the
375375 managed care organization.
376376 (e) If the commission determines that a recipient's primary
377377 health benefit plan issuer should have been the primary payor of a
378378 claim, the Medicaid managed care organization that paid the claim
379379 shall work with the commission on the recovery process and make
380380 every attempt to reduce health care provider and recipient
381381 abrasion.
382382 (f) The executive commissioner may seek a waiver from the
383383 federal government as needed to:
384384 (1) address federal policies related to coordination
385385 of benefits and third-party liability; and
386386 (2) maximize federal financial participation for
387387 recipients with both primary health benefit plan coverage and
388388 Medicaid coverage.
389389 (g) Notwithstanding Sections 531.073 and 533.005(a)(23) or
390390 any other law, the commission shall ensure that a prescription drug
391391 that is covered under the Medicaid vendor drug program or other
392392 applicable formulary and is prescribed to a recipient with primary
393393 health benefit plan coverage is not subject to any prior
394394 authorization requirement if the primary health benefit plan issuer
395395 will pay at least $0.01 on the prescription drug claim. If the
396396 primary insurer will pay nothing on a prescription drug claim, the
397397 prescription drug is subject to any applicable Medicaid clinical or
398398 nonpreferred prior authorization requirement.
399399 (h) The commission shall ensure that the daily Medicaid
400400 managed care eligibility files indicate whether a recipient has
401401 primary health benefit plan coverage or health insurance premium
402402 payment coverage. For a recipient who has that coverage, the files
403403 must include the following up-to-date, accurate information
404404 related to primary health benefit plan coverage:
405405 (1) the health benefit plan issuer's name and address
406406 and the recipient's policy number;
407407 (2) the primary health benefit plan coverage start and
408408 end dates;
409409 (3) the primary health benefit plan coverage benefits,
410410 limits, copayment, and coinsurance information; and
411411 (4) any additional information that would be useful to
412412 ensure the coordination of benefits.
413413 (i) The commission shall develop and implement processes
414414 and policies to allow a health care provider who is primarily
415415 providing services to a recipient through primary health benefit
416416 plan coverage to receive Medicaid reimbursement for services
417417 ordered, referred, prescribed, or delivered, regardless of whether
418418 the provider is enrolled as a Medicaid provider. The commission
419419 shall allow a provider who is not enrolled as a Medicaid provider to
420420 order, refer, prescribe, or deliver services to a recipient based
421421 on the provider's national provider identifier number and may not
422422 require an additional state provider identifier number to receive
423423 reimbursement for the services. The commission may seek a waiver of
424424 Medicaid provider enrollment requirements for providers of
425425 recipients with primary health benefit plan coverage to implement
426426 this subsection.
427427 (j) The commission shall develop and implement a clear and
428428 easy process to allow a recipient with complex medical needs who has
429429 established a relationship with a specialty provider in an area
430430 outside of the recipient's Medicaid managed care organization's
431431 service delivery area to continue receiving care from that provider
432432 if the provider will enter into a single-case agreement with the
433433 Medicaid managed care organization. A single-case agreement with a
434434 provider outside of the organization's service delivery area in
435435 accordance with this subsection is not considered an
436436 out-of-network agreement and must be included in the organization's
437437 network adequacy determination.
438438 (k) The commission shall develop and implement processes
439439 to:
440440 (1) reimburse a recipient with primary health benefit
441441 plan coverage who pays a copayment, coinsurance, or other
442442 cost-sharing amount out of pocket because the primary health
443443 benefit plan issuer refuses to enroll in Medicaid, enter into a
444444 single-case agreement, or bill the recipient's Medicaid managed
445445 care organization; and
446446 (2) capture encounter data for the Medicaid
447447 wrap-around benefits provided by the Medicaid managed care
448448 organization under this subsection.
449449 Sec. 533.039. COORDINATION OF BENEFITS FOR PERSONS DUALLY
450450 ELIGIBLE UNDER MEDICAID AND MEDICARE. (a) In this section,
451451 "Medicaid wrap-around benefit" means a Medicaid-covered service,
452452 including a pharmacy or medical benefit, that is provided to a
453453 recipient with both Medicaid and Medicare coverage when the
454454 recipient has exceeded the Medicare coverage limit or when the
455455 service is not covered by Medicare.
456456 (b) The executive commissioner, in consultation with
457457 Medicaid managed care organizations, by rule shall develop and
458458 implement a policy that ensures the coordinated and timely delivery
459459 of Medicaid wrap-around benefits. The policy must:
460460 (1) include a benefits equivalency crosswalk or other
461461 method for mapping equivalent benefits under Medicaid and Medicare;
462462 and
463463 (2) in a manner that is consistent with federal and
464464 state law, require sharing of information concerning third-party
465465 sources of coverage and reimbursement.
466466 SECTION 13. (a) Not later than December 31, 2019, the
467467 executive commissioner of the Health and Human Services Commission
468468 shall establish the advisory committee as required by Section
469469 531.02112(b), Government Code, as added by this Act.
470470 (b) The procedure for implementing changes to payment rates
471471 required by Section 531.02112, Government Code, as added by this
472472 Act, applies only to a change to a fee, charge, or rate that takes
473473 effect on or after January 1, 2021.
474474 SECTION 14. Section 531.0602, Government Code, as added by
475475 this Act, applies only to a reassessment of a child's eligibility
476476 for the medically dependent children (MDCP) waiver program made on
477477 or after December 1, 2019.
478478 SECTION 15. As soon as practicable after the effective date
479479 of this Act, the executive commissioner of the Health and Human
480480 Services Commission shall adopt rules necessary to implement the
481481 changes in law made by this Act.
482482 SECTION 16. (a) Section 533.00285, Government Code, as
483483 added by this Act, applies only to a contract between the Health and
484484 Human Services Commission and a Medicaid managed care organization
485485 under Chapter 533, Government Code, that is entered into or renewed
486486 on or after the effective date of this Act.
487487 (b) The Health and Human Services Commission shall seek to
488488 amend contracts entered into with Medicaid managed care
489489 organizations under Chapter 533, Government Code, before the
490490 effective date of this Act to include the provisions required by
491491 Section 533.00285, Government Code, as added by this Act.
492492 SECTION 17. If before implementing any provision of this
493493 Act a state agency determines that a waiver or authorization from a
494494 federal agency is necessary for implementation of that provision,
495495 the agency affected by the provision shall request the waiver or
496496 authorization and may delay implementing that provision until the
497497 waiver or authorization is granted.
498498 SECTION 18. This Act takes effect September 1, 2019.