Texas 2023 88th Regular

Texas House Bill HB2401 Engrossed / Bill

Filed 05/11/2023

                    By: Oliverson, Burrows, Jetton, Shaheen, H.B. No. 2401
 Noble, et al.


 A BILL TO BE ENTITLED
 AN ACT
 relating to certain contracting requirements under the Medicaid
 managed care delivery model.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 533.003(a), Government Code, is amended
 to read as follows:
 (a)  In awarding contracts to managed care organizations,
 the commission shall:
 (1)  give preference to organizations that have
 significant participation in the organization's provider network
 from each health care provider in the region who has traditionally
 provided care to Medicaid and charity care patients;
 (2)  give extra consideration to organizations that
 agree to assure continuity of care for at least three months beyond
 the period of Medicaid eligibility for recipients;
 (3)  consider the need to use different managed care
 plans to meet the needs of different populations;
 (4)  consider the ability of organizations to process
 Medicaid claims electronically; [and]
 (5)  in the initial implementation of managed care in
 the South Texas service region, give extra consideration to an
 organization that [either:
 [(A)] is locally owned, managed, and operated, if
 one exists; and
 (6)  consider the potential benefit to the Medicaid
 managed care program implemented under this chapter that may be
 derived from awarding a contract to provide health care services to
 recipients in a service delivery area to an organization that is
 licensed under Chapter 843, Insurance Code, and is:
 (A)  wholly owned and operated by a hospital
 district in the service delivery area; or
 (B)  created by a nonprofit organization that has
 a contract, agreement, or other arrangement with a hospital
 district in that service delivery area or with a municipality in
 that service delivery area that owns a hospital licensed under
 Chapter 241, Health and Safety Code, and has an obligation to
 provide health care to indigent patients [is in compliance with the
 requirements of Section 533.004].
 SECTION 2.  Section 533.004, Government Code, is repealed.
 SECTION 3.  (a) Except as provided by Subsection (b) of this
 section, the changes in law made by this Act apply only after the
 next operational start date of the Health and Human Services
 Commission's STAR and STAR+PLUS procurements. A procurement before
 the next operational start date for the Health and Human Services
 Commission's STAR and STAR+PLUS procurements is governed by the law
 in effect before the effective date of this Act and the former law
 is continued in effect for that purpose.
 (b)  The changes in law made by this Act apply to any STAR
 Kids procurement on or after the effective date of this Act.
 SECTION 4.  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 5.  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, 2023.