87R7118 BDP-D
By: Kolkhorst S.B. No. 1150
A BILL TO BE ENTITLED
AN ACT
relating to assignment or transfer of certain contracts with
managed care organizations under Medicaid and the child health plan
program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 531, Government Code, is
amended by adding Section 531.06965 to read as follows:
Sec. 531.06965. ASSIGNMENT OR TRANSFER OF CERTAIN MANAGED
CARE ORGANIZATION CONTRACTS. (a) In this section:
(1) "Managed care organization" means a Medicaid
managed care organization and a managed care organization that
contracts with the commission to provide health care services to
child health plan program enrollees.
(2) "Terminating managed care organization" means a
managed care organization that notifies the commission in writing
or otherwise of the organization's intent to terminate the
organization's contract with the commission to provide health care
services to Medicaid recipients or child health plan program
enrollees.
(b) The commission shall develop a process to assign or
transfer a contract from a terminating managed care organization to
a managed care organization currently under contract with the
commission if the commission determines that the termination:
(1) puts the commission at risk of violating a state or
federal law or regulation;
(2) jeopardizes the health and safety of Medicaid
recipients or child health plan program enrollees; or
(3) otherwise impedes the most cost-effective
delivery of capitated managed care under the applicable program.
(c) Notwithstanding any other law, the provisions of
Chapter 2155 do not apply to the assignment or transfer of a
contract through the process the commission develops under this
section.
SECTION 2. If before implementing any provision of this Act
a state agency determines that a waiver or authorization from a
federal agency is necessary for implementation of that provision,
the agency affected by the provision shall request the waiver or
authorization and may delay implementing that provision until the
waiver or authorization is granted.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.