| 1 | 1 | | 87R7118 BDP-D |
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| 2 | 2 | | By: Kolkhorst S.B. No. 1150 |
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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 assignment or transfer of certain contracts with |
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| 8 | 8 | | managed care organizations under Medicaid and the child health plan |
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| 9 | 9 | | program. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter B, Chapter 531, Government Code, is |
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| 12 | 12 | | amended by adding Section 531.06965 to read as follows: |
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| 13 | 13 | | Sec. 531.06965. ASSIGNMENT OR TRANSFER OF CERTAIN MANAGED |
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| 14 | 14 | | CARE ORGANIZATION CONTRACTS. (a) In this section: |
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| 15 | 15 | | (1) "Managed care organization" means a Medicaid |
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| 16 | 16 | | managed care organization and a managed care organization that |
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| 17 | 17 | | contracts with the commission to provide health care services to |
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| 18 | 18 | | child health plan program enrollees. |
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| 19 | 19 | | (2) "Terminating managed care organization" means a |
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| 20 | 20 | | managed care organization that notifies the commission in writing |
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| 21 | 21 | | or otherwise of the organization's intent to terminate the |
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| 22 | 22 | | organization's contract with the commission to provide health care |
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| 23 | 23 | | services to Medicaid recipients or child health plan program |
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| 24 | 24 | | enrollees. |
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| 25 | 25 | | (b) The commission shall develop a process to assign or |
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| 26 | 26 | | transfer a contract from a terminating managed care organization to |
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| 27 | 27 | | a managed care organization currently under contract with the |
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| 28 | 28 | | commission if the commission determines that the termination: |
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| 29 | 29 | | (1) puts the commission at risk of violating a state or |
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| 30 | 30 | | federal law or regulation; |
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| 31 | 31 | | (2) jeopardizes the health and safety of Medicaid |
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| 32 | 32 | | recipients or child health plan program enrollees; or |
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| 33 | 33 | | (3) otherwise impedes the most cost-effective |
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| 34 | 34 | | delivery of capitated managed care under the applicable program. |
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| 35 | 35 | | (c) Notwithstanding any other law, the provisions of |
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| 36 | 36 | | Chapter 2155 do not apply to the assignment or transfer of a |
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| 37 | 37 | | contract through the process the commission develops under this |
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| 38 | 38 | | section. |
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| 39 | 39 | | SECTION 2. If before implementing any provision of this Act |
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| 40 | 40 | | a state agency determines that a waiver or authorization from a |
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| 41 | 41 | | federal agency is necessary for implementation of that provision, |
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| 42 | 42 | | the agency affected by the provision shall request the waiver or |
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| 43 | 43 | | authorization and may delay implementing that provision until the |
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| 44 | 44 | | waiver or authorization is granted. |
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| 45 | 45 | | SECTION 3. This Act takes effect immediately if it receives |
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| 46 | 46 | | a vote of two-thirds of all the members elected to each house, as |
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| 47 | 47 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 48 | 48 | | Act does not receive the vote necessary for immediate effect, this |
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| 49 | 49 | | Act takes effect September 1, 2021. |
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