89R5364 SCF-F By: Oliverson H.B. No. 2946 A BILL TO BE ENTITLED AN ACT relating to the provision of nutrition support services to Medicaid recipients in lieu of other state Medicaid plan services and a report on the health outcomes of providing those services. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 540.0272, Government Code, as effective April 1, 2025, is amended to read as follows: Sec. 540.0272. CERTAIN SERVICES PERMITTED IN LIEU OF STATE MEDICAID PLAN SERVICES [OTHER MENTAL HEALTH OR SUBSTANCE USE DISORDER SERVICES]; ANNUAL REPORT. (a) A contract to which this subchapter applies must contain language permitting the contracting Medicaid managed care organization to offer recipients enrolled in the organization's managed care plan medically appropriate, cost-effective, evidence-based mental health or substance use services or, subject to Section 540.02721, nutrition support services from a list of services approved by the commission [state Medicaid managed care advisory committee] and included in the contract as services the organization may provide recipients in lieu of [mental health or substance use disorder] services specified in the state Medicaid plan. A recipient is not required to use a service from the list included in the contract in lieu of a [another mental health or substance use disorder] service specified in the state Medicaid plan. (b) The commission shall: (1) not later than November 1 of each year, prepare and submit to the legislature a [an annual] report on the number of times during the preceding year a service from the list included in the contract is used; and (2) consider the actual cost and use of any services from the list included in the contract that are offered by a Medicaid managed care organization when setting the capitation rates for that organization under the contract. SECTION 2. Subchapter F, Chapter 540, Government Code, as effective April 1, 2025, is amended by adding Section 540.02721 to read as follows: Sec. 540.02721. NUTRITION SUPPORT SERVICES; BIENNIAL REPORT. (a) In this section: (1) "Community-based nutrition support organization" means an organization that: (A) provides nutrition support services; (B) has an established agreement with a health care provider to implement nutrition support services under this section; and (C) employs: (i) at least one registered dietitian nutritionist; (ii) culinary personnel; and (iii) support personnel capable of providing patient referrals to a health care provider, sourcing ingredients, and packaging and delivering meals to eligible recipients. (2) "Food prescription program" means a program under which a health care provider prescribes nutritious food, including fresh fruits and vegetables, to an individual who has or is at risk of developing a diet-related chronic disease to, as appropriate, treat the disease or reduce the individual's risk of developing the disease by increasing the patient's access to and consumption of healthy food. (3) "Medically tailored meal" means food prepared as prescribed by a dietician or other health care provider to treat an individual's diet-related chronic disease or health condition and any associated symptoms. (b) In approving the list of nutrition support services that are permitted in lieu of services specified in the state Medicaid plan under Section 540.0272, the commission shall consider including the following services: (1) case management services related to food and nutrition access; (2) nutrition counseling and guidance that is specific to an individual's needs or designed to improve health outcomes; (3) the provision of medically tailored meals; (4) food prescription programs; and (5) any other nutrition support service the commission determines to be appropriate, evidence-based, and cost-effective. (c) In implementing Section 540.0272 as it relates to nutrition support services and this section, the commission shall ensure that: (1) community-based nutrition support organizations may provide nutrition support services to recipients under Medicaid; and (2) a recipient does not receive duplicate services under Medicaid. (d) The executive commissioner shall establish a separate provider type for community-based nutrition support organizations for purposes of enrollment and reimbursement as a provider under Medicaid. (e) Not later than November 1 of each even-numbered year, the commission shall prepare and submit to the legislature a biennial report on the health outcomes of providing nutrition support services in lieu of services specified in the state Medicaid plan. The report must include: (1) the number of recipients receiving nutrition support services during the preceding two-year period; and (2) an assessment of those individuals' health outcomes based on relevant National Committee for Quality Assurance Healthcare Effectiveness Data and Information Set (HEDIS) measures, including: (A) hemoglobin A1c levels; (B) blood pressure control; (C) birth weight, if applicable; (D) emergency room visits; and (E) any other measure of the health outcomes the commission determines relevant to evaluate the effectiveness of nutrition support services. SECTION 3. The changes in law made by this Act apply to a contract entered into or renewed on or after the effective date of this Act. A contract entered into or renewed before that date is governed by the law in effect on the date the contract was entered into or renewed, and that law is continued in effect for that purpose. 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 September 1, 2025.