Texas 2025 - 89th Regular

Texas House Bill HB5244 Compare Versions

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11 89R11869 JG-F
22 By: Manuel H.B. No. 5244
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77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the development and implementation of the Texas Plan
1010 demonstration program to fund the purchase by and provision to
1111 certain eligible individuals of health care services.
1212 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1313 SECTION 1. Subtitle I, Title 4, Government Code, is amended
1414 by adding Chapter 532A to read as follows:
1515 CHAPTER 532A. TEXAS PLAN DEMONSTRATION PROGRAM
1616 SUBCHAPTER A. GENERAL PROVISIONS
1717 Sec. 532A.0001. DEFINITIONS. In this chapter:
1818 (1) "Board" means the board of directors of the
1919 med-pool.
2020 (2) "Eligible individual" means an individual who is
2121 eligible to participate in the program.
2222 (3) "Health benefit account" means a health benefit
2323 account the comptroller establishes for a participant under
2424 Subchapter E.
2525 (4) "Health care provider" means:
2626 (A) a primary care provider;
2727 (B) a specialty and major medical care provider;
2828 and
2929 (C) an integrated health care organization.
3030 (5) "Integrated health care organization" means a
3131 health care organization that provides all of a participant's
3232 health care needs, including primary care and specialty and major
3333 medical care services, using a capitated payment model.
3434 (6) "Med-pool" means the risk pool established under
3535 Subchapter F to provide specialty and major medical care services
3636 to participants.
3737 (7) "Nondiscriminatory price" means a fixed,
3838 transparent, nonnegotiable price for a health care service that a
3939 health care provider charges each individual for the service
4040 regardless of the payment model used to pay for the service.
4141 (8) "Participant" means an individual who is enrolled
4242 in the program.
4343 (9) "Primary care provider" means a provider of
4444 primary care services.
4545 (10) "Primary care services" includes whole-person,
4646 integrated, and accessible health care provided by
4747 interprofessional teams that are engaged to address the majority of
4848 an individual's health and wellness needs across different health
4949 care settings through sustained relationships with patients,
5050 families, and communities in order to achieve better health
5151 outcomes, better care, and lower health care prices.
5252 (11) "Program" means the Texas Plan demonstration
5353 program established under this chapter.
5454 (12) "Specialty and major medical care provider" means
5555 a provider of specialty and major medical care services.
5656 (13) "Specialty and major medical care services" means
5757 health care services other than primary care services. The term
5858 includes:
5959 (A) emergency care;
6060 (B) urgent care;
6161 (C) hospital care;
6262 (D) allergy and immunology;
6363 (E) anesthesiology;
6464 (F) cardiology;
6565 (G) dermatology;
6666 (H) diagnostic radiology;
6767 (I) medical genetics;
6868 (J) nephrology;
6969 (K) neurology;
7070 (L) nuclear medicine;
7171 (M) obstetrics and gynecology;
7272 (N) oncology;
7373 (O) ophthalmology;
7474 (P) orthopedics;
7575 (Q) pathology;
7676 (R) pediatrics;
7777 (S) physical medicine and rehabilitation;
7878 (T) psychiatry;
7979 (U) radiation oncology;
8080 (V) surgery; and
8181 (W) urology.
8282 Sec. 532A.0002. FEDERAL AUTHORIZATION FOR PROGRAM. (a)
8383 The executive commissioner shall develop and seek a waiver under
8484 Section 1115 of the Social Security Act (42 U.S.C. Section 1315) or,
8585 if available, a block grant or comparable funding system that may be
8686 used for this purpose to obtain any federal money available for
8787 implementing the Texas Plan demonstration program to assist
8888 eligible individuals in obtaining health care services.
8989 (b) The terms of the waiver the executive commissioner seeks
9090 must:
9191 (1) be designed to:
9292 (A) make high value health care services more
9393 accessible to eligible individuals;
9494 (B) provide money to cover the costs of a
9595 participant's primary care services, specialty and major medical
9696 care services, dental health services, prescription drugs, and
9797 other eligible out-of-pocket health care expenses;
9898 (C) for the purpose of shifting costs from
9999 hospital care to prevention, emphasize the provision of capitated,
100100 whole-person, person-centered primary care, including case
101101 management, mental health services, and health system navigation,
102102 as a core component of the program's overall health goals;
103103 (D) improve health outcomes of participants
104104 based on the value of care the program offers, including by:
105105 (i) when diagnosing and treating a
106106 participant, considering nonmedical factors that impact the
107107 participant's health, including nutrition, transportation,
108108 housing, and employment; and
109109 (ii) to the extent possible, coordinating
110110 with community health organizations and other local resources
111111 available to address the nonmedical factors;
112112 (E) emphasize and encourage price and quality
113113 transparency by program health care providers to enable:
114114 (i) a participant to make informed
115115 decisions regarding health care price and quality; and
116116 (ii) the commission and board to collect
117117 accurate and current pricing information for each provider,
118118 including nondiscriminatory price information;
119119 (F) provide a framework for the commission and
120120 board to use existing data sources or develop new data sources to
121121 obtain and publish information on high-value care that:
122122 (i) identifies health care providers who
123123 provide low health care prices and high quality of care, including
124124 health care centers of excellence; and
125125 (ii) facilitates a participant's ability to
126126 navigate between health care providers to obtain high-value care;
127127 and
128128 (G) subject to Section 532A.0104, provide
129129 continuous coverage for participants for the duration of the
130130 program;
131131 (2) because some participants may have limited primary
132132 care options, recognize a broad range of primary care arrangements
133133 and providers under the program, including:
134134 (A) direct primary care, advanced primary care,
135135 and similar primary care service arrangements provided virtually or
136136 on-site;
137137 (B) federally qualified health centers, as
138138 defined by 42 U.S.C. Section 1396d(l)(2)(B); and
139139 (C) commercial retailers that provide primary
140140 care services at a published, nondiscriminatory price for each
141141 offered service;
142142 (3) allow health care services to be provided remotely
143143 as telehealth services or telemedicine medical services; and
144144 (4) allow for the operation of the program consistent
145145 with the requirements of this chapter for a period of five years,
146146 except to the extent deviation from the requirements is necessary
147147 to obtain the waiver.
148148 Sec. 532A.0003. FUNDING. (a) Subject to approval of the
149149 waiver described by Section 532A.0002, the commission shall
150150 implement the program using federal money obtained and state money
151151 available for that purpose.
152152 (b) The commission shall implement the program in
153153 accordance with the following spending requirements:
154154 (1) except as provided by Subdivision (2), the
155155 commission shall use state money appropriated for the program to
156156 cover:
157157 (A) the administrative costs of implementing and
158158 operating the program; and
159159 (B) the costs of med-pool health care claims and
160160 excess loss coverage to protect the med-pool against financial
161161 losses that may place the med-pool's solvency in financial
162162 jeopardy; and
163163 (2) except as provided by Subsection (c), the
164164 commission shall use federal money received for the program and an
165165 amount of state money appropriated for the program that the
166166 commission determines necessary to cover the costs of providing
167167 health care services to program participants by distributing the
168168 money among each participant on a per capita basis in the following
169169 proportions and manner:
170170 (A) 25 percent of allocated money must be:
171171 (i) used to cover the costs of providing a
172172 participant's primary care services, including dental health and
173173 prescription drug costs related to those services; and
174174 (ii) deposited into the participant's
175175 health benefit account in accordance with Subchapter E; and
176176 (B) 75 percent of allocated money must be:
177177 (i) used to cover the costs of providing a
178178 participant's specialty and major medical care services, including
179179 prescription drug costs related to those services; and
180180 (ii) disbursed to the med-pool.
181181 (c) For a participant who receives all of the participant's
182182 health care needs from an integrated health care organization, the
183183 commission shall:
184184 (1) disburse 96 percent of the per capita amount
185185 described by Subsection (b)(2) to the organization to cover the
186186 costs of providing the participant's health care services; and
187187 (2) deposit the remaining four percent into the
188188 participant's health benefit account in accordance with Subchapter
189189 E to cover the costs of eligible out-of-pocket health care
190190 expenses.
191191 Sec. 532A.0004. EXPIRATION. The program concludes and this
192192 chapter expires September 1, 2031.
193193 SUBCHAPTER B. PROGRAM ADMINISTRATION
194194 Sec. 532A.0051. PROGRAM OBJECTIVE. The program's objective
195195 is to enable eligible individuals to obtain, and to provide money to
196196 participants to cover the costs of, health care services, including
197197 dental health services, and prescription drugs in a manner that:
198198 (1) offers convenient access to high-value care;
199199 (2) prioritizes whole-person, person-centered,
200200 coordinated primary care services; and
201201 (3) lowers the overall costs for providing health care
202202 services to participants over the course of the program.
203203 Sec. 532A.0052. PROGRAM PROMOTION. The commission shall
204204 promote and provide information on the program to individuals who
205205 are potentially eligible to participate in the program. The
206206 commission shall ensure the program's promotion is designed in a
207207 manner to reach as many eligible individuals as possible.
208208 Sec. 532A.0053. COMMISSION'S AUTHORITY RELATED TO
209209 ELIGIBILITY AND MEDICAID COORDINATION. The commission may:
210210 (1) accept applications for program participation and
211211 implement program eligibility screening and enrollment procedures;
212212 (2) resolve grievances related to eligibility
213213 determinations; and
214214 (3) to the extent possible, coordinate the program
215215 with Medicaid and any exchange offering a health benefit plan under
216216 the Patient Protection and Affordable Care Act (Pub. L. No.
217217 111-148), as amended by the Health Care and Education
218218 Reconciliation Act of 2010 (Pub. L. No. 111-152).
219219 SUBCHAPTER C. PROGRAM ELIGIBILITY
220220 Sec. 532A.0101. ELIGIBILITY REQUIREMENTS. An individual is
221221 eligible to participate in the program if:
222222 (1) the individual is a:
223223 (A) citizen or permanent resident of the United
224224 States; and
225225 (B) resident of this state;
226226 (2) the individual is 19 years of age or older but
227227 younger than 65 years of age;
228228 (3) applying the eligibility criteria in effect in
229229 this state on December 31, 2024, the individual is not eligible for
230230 Medicaid; and
231231 (4) federal money is available to provide benefits to
232232 the individual under the program.
233233 Sec. 532A.0102. APPLICATION FORM AND PROCEDURES. (a) The
234234 executive commissioner shall adopt an application form and
235235 application procedures for the program. The form and procedures
236236 may be coordinated with Medicaid forms and procedures to ensure
237237 there is a single consolidated application process to seek health
238238 care services under the program or Medicaid.
239239 (b) To the extent possible, the commission shall make the
240240 application form available in languages other than English.
241241 (c) The executive commissioner may permit an individual to
242242 apply by mail, over the telephone, or through the Internet.
243243 Sec. 532A.0103. ELIGIBILITY SCREENING AND ENROLLMENT. (a)
244244 The executive commissioner shall adopt eligibility screening and
245245 enrollment procedures or use the Texas Integrated Enrollment
246246 Services eligibility determination system or a compatible or
247247 successor system to screen individuals and enroll eligible
248248 individuals in the program.
249249 (b) The eligibility screening and enrollment procedures
250250 must ensure that an individual applying for the program who appears
251251 eligible for Medicaid is identified and assisted with obtaining
252252 Medicaid coverage. If the individual is denied Medicaid coverage
253253 but is otherwise determined eligible to participate in the program,
254254 the commission shall enroll the individual in the program without
255255 additional application or qualification.
256256 (c) Not later than the 30th day after the date an individual
257257 submits a complete application form and unless the individual is
258258 identified and assisted with obtaining Medicaid coverage under
259259 Subsection (b), the commission shall ensure that the individual's
260260 eligibility to participate in the program is determined and that
261261 the individual is enrolled in the program.
262262 (d) At the time an eligible individual is enrolled in the
263263 program and using the database the commission establishes under
264264 Section 532A.0152, the commission shall assist the individual in
265265 selecting an accessible, high-value primary care provider under the
266266 program. A participant may:
267267 (1) change the participant's primary care provider at
268268 any time; and
269269 (2) contact the commission for assistance in selecting
270270 a new primary care provider.
271271 Sec. 532A.0104. CONTINUOUS COVERAGE; ELIGIBILITY
272272 REDETERMINATION AND DISENROLLMENT. (a) If authorized by the terms
273273 of the waiver the executive commissioner seeks under Section
274274 532A.0002, the commission shall ensure that an individual who is
275275 initially determined to be eligible to participate in the program
276276 remains enrolled in the program until the program concludes.
277277 (b) If the terms of the waiver the executive commissioner
278278 seeks under Section 532A.0002 do not authorize continuous coverage
279279 described by Subsection (a), the commission shall:
280280 (1) redetermine a participant's eligibility to
281281 participate in the program during the later of the 12th month
282282 following the date the participant is initially enrolled in the
283283 program or was most recently redetermined eligible for the program;
284284 (2) to the extent possible, conduct an eligibility
285285 redetermination automatically without requiring information from
286286 the participant using information from verifiable electronic data
287287 sources or that is otherwise available to the commission;
288288 (3) not later than the 60th day before the expiration
289289 of a participant's coverage period, take all reasonable steps to
290290 notify the participant regarding the eligibility redetermination
291291 process and request documentation necessary to redetermine the
292292 participant's eligibility;
293293 (4) disenroll a participant from the program if:
294294 (A) the participant does not submit the requested
295295 eligibility redetermination documentation on or before the last day
296296 of the participant's coverage period; or
297297 (B) the commission, based on the submitted
298298 documentation, determines the participant is no longer eligible to
299299 participate in the program; and
300300 (5) ensure the eligibility redetermination process is
301301 as seamless and contains as little administrative burden for the
302302 participant as possible to facilitate the participant's successful
303303 eligibility redetermination.
304304 SUBCHAPTER D. HEALTH CARE PROVIDERS AND PROVISION OF HEALTH CARE
305305 UNDER PROGRAM
306306 Sec. 532A.0151. HEALTH CARE PROVIDER REGISTRATION AND
307307 PRICING INFORMATION. (a) The commission shall establish a
308308 streamlined registration process through which a health care
309309 provider may register to participate in the program.
310310 (b) As part of the registration process, a health care
311311 provider may submit to the commission:
312312 (1) information on:
313313 (A) the provider's office location; and
314314 (B) specific pricing information the provider
315315 charges for a health care service, including pricing information
316316 on, as applicable:
317317 (i) capitated arrangements;
318318 (ii) bundled services;
319319 (iii) fee-for-service prices; and
320320 (iv) health care services for which the
321321 provider charges a nondiscriminatory price; and
322322 (2) other information or data the provider determines
323323 relevant to allow the commission and board to assess the provider's
324324 value of care based on metrics that include:
325325 (A) patient-reported health outcomes for
326326 patients the provider serves; and
327327 (B) the provider's quality of care provided based
328328 on objective clinical metrics.
329329 (c) The commission shall ensure a health care provider is
330330 able to easily and timely update any information the provider
331331 submits.
332332 (d) A primary care provider charging a monthly or annual
333333 capitated rate may not charge a participant for a health care
334334 service, regardless of the payment model used to pay for the
335335 service, in an amount that is greater than the amount specified for
336336 that service in the pricing information submitted under this
337337 section but may charge participants different amounts in accordance
338338 with price categories the provider establishes based on age or
339339 gender only if the provider charges the same price for all
340340 participants in those price categories.
341341 (e) The commission, in collaboration with the board, may
342342 develop processes to ensure information on a health care provider's
343343 pricing and quality of care is accurate and up-to-date to enable the
344344 commission and board to adequately and meaningfully measure and
345345 assess the provider's value of services for the purpose of
346346 compiling and processing data under Section 532A.0152.
347347 Sec. 532A.0152. VALUE OF CARE METRICS AND DATA; PROVIDER
348348 DATABASE. (a) The commission may develop and use metrics to
349349 measure and assess the value of care provided by program health care
350350 providers who submit to the commission the information described by
351351 Section 532A.0151. The metrics may:
352352 (1) include measurements that demonstrate
353353 improvements in an individual's objective and subjective health
354354 outcomes relative to the cost of achieving those improvements; and
355355 (2) be designed to measure as broad a range of health
356356 care services as is practicable, including:
357357 (A) primary care services; and
358358 (B) specialty and major medical care services.
359359 (b) The commission may compile and process data on a health
360360 care provider's value of care based on the measurements and
361361 assessments submitted to the commission by the provider or based on
362362 information independently obtained by the commission or board. The
363363 commission shall ensure the data is sufficient to enable a
364364 participant to make informed decisions in selecting, including at
365365 the time the participant is initially enrolled in the program,
366366 health care providers that:
367367 (1) are accessible to the participant; and
368368 (2) provide high-value care.
369369 (c) The commission may develop and maintain a public
370370 machine-readable database of high-value program health care
371371 providers as the commission and board determine in accordance with
372372 this section.
373373 (d) The commission shall collaborate with the board in
374374 implementing this section.
375375 Sec. 532A.0153. SPECIALTY AND MAJOR MEDICAL CARE. (a) The
376376 med-pool or integrated health care organization with which a
377377 participant enrolls shall pay the costs for providing the
378378 participant's specialty and major medical care services, including
379379 prescription drug costs related to those services.
380380 (b) The board and commission shall develop and implement
381381 procedures for a participant to seek and obtain payment for
382382 specialty and major medical care costs the participant incurs.
383383 Sec. 532A.0154. EMERGENCY CARE PRICING. Unless the board
384384 determines otherwise or contracts for a lesser rate, emergency care
385385 services provided to a participant through the med-pool or an
386386 integrated health care organization will be reimbursed at the same
387387 rate at which those services are reimbursed under the Medicare
388388 program.
389389 SUBCHAPTER E. HEALTH BENEFIT ACCOUNTS
390390 Sec. 532A.0201. ESTABLISHMENT OF HEALTH BENEFIT ACCOUNTS.
391391 (a) The comptroller, in collaboration with the commission and
392392 board, shall establish and maintain for each participant a health
393393 benefit account that is funded in accordance with this subchapter.
394394 The comptroller may contract with a qualified entity to perform the
395395 comptroller's duties under this subchapter.
396396 (b) The comptroller shall establish an electronic portal or
397397 similar system through which a participant may electronically
398398 access and manage money in and information regarding the
399399 participant's health benefit account.
400400 Sec. 532A.0202. HEALTH BENEFIT ACCOUNT FUNDING. Subject to
401401 Section 532A.0003, the comptroller shall fund each participant's
402402 health benefit account with federal and state money in accordance
403403 with Section 532A.0003(b). The amount deposited must be:
404404 (1) equal for each participant based on the program's
405405 total funding and the spending requirements prescribed in Section
406406 532A.0003; and
407407 (2) in excess of money remaining in a participant's
408408 health benefit account from a preceding coverage period, as
409409 applicable.
410410 Sec. 532A.0203. USE OF HEALTH BENEFIT ACCOUNT MONEY. (a) A
411411 participant may use money in the participant's health benefit
412412 account to pay primary care costs, including dental health costs,
413413 prescription drug costs related to primary care services, and other
414414 eligible out-of-pocket health care expenses. The comptroller shall
415415 issue to the participant an electronic payment card that allows the
416416 participant to use the card to pay costs described by this section.
417417 (b) For purposes of this section, "eligible out-of-pocket
418418 health care expense" means a health care-related expense not
419419 covered by the primary care capitation rate, including copayments
420420 for blood draws and other primary care services, over-the-counter
421421 medications, vision care, and copayments that may be required for
422422 specialty and major medical care services.
423423 Sec. 532A.0204. CLOSING OF HEALTH BENEFIT ACCOUNT. If at
424424 the end of a participant's coverage period the participant chooses
425425 to cease participating in the program or is no longer eligible to
426426 participate in the program, the comptroller shall close the
427427 participant's health benefit account and the commission shall:
428428 (1) recoup any money remaining in the account at the
429429 time it is closed; and
430430 (2) use the recouped money to continue to fund the
431431 program in accordance with the spending requirements prescribed by
432432 Section 532A.0003.
433433 SUBCHAPTER F. MED-POOL
434434 Sec. 532A.0251. ESTABLISHMENT. The med-pool is established
435435 to provide specialty and major medical care services to
436436 participants.
437437 Sec. 532A.0252. BOARD OF DIRECTORS. (a) The med-pool is
438438 governed by a board of directors. The board is composed of the
439439 following seven members appointed by the executive commissioner:
440440 (1) two members with appropriate expertise in health
441441 insurance, risk pools, and the evaluation of risk within risk
442442 pools;
443443 (2) one member who is a licensed physician;
444444 (3) one member with appropriate expertise in health
445445 care technology;
446446 (4) one member who is a representative of a federally
447447 qualified health center;
448448 (5) one member who is a representative of a community
449449 health organization; and
450450 (6) one public member.
451451 (b) In making appointments under Subsection (a), the
452452 executive commissioner shall make an effort to select board members
453453 who reflect the ethnic and geographic diversity of this state.
454454 (c) The board shall select from among the board members a
455455 presiding officer.
456456 Sec. 532A.0253. EXCESS LOSS COVERAGE AUTHORIZED. The board
457457 may purchase excess loss coverage for the med-pool to the extent
458458 available state money is insufficient to protect the med-pool
459459 against actuarially projected financial losses the board
460460 determines may place the med-pool's solvency in financial jeopardy.
461461 Sec. 532A.0254. INVESTMENTS. (a) The board shall invest
462462 med-pool money in accordance with Subchapter A, Chapter 2256,
463463 Government Code, to the extent that law can be made applicable.
464464 (b) In addition to investments authorized under Subchapter
465465 A, Chapter 2256, Government Code, the board may invest med-pool
466466 money in any investment authorized under Subtitle B, Title 9,
467467 Property Code.
468468 Sec. 532A.0255. AUDITS. (a) The board shall have the
469469 med-pool's fiscal accounts and records audited annually by an
470470 independent auditor. The audit must cover the med-pool's fiscal
471471 year.
472472 (b) The independent auditor must be a certified public
473473 accountant or public accountant licensed by the Texas State Board
474474 of Public Accountancy.
475475 (c) The board shall file annually with the commission a copy
476476 of the audit report. The commission shall make copies of the audit
477477 reports available to the public on the commission's Internet
478478 website.
479479 Sec. 532A.0256. APPLICATION OF CERTAIN LAWS. The med-pool
480480 is not:
481481 (1) insurance or an insurer under the Insurance Code
482482 and other laws of this state; or
483483 (2) subject to regulation by the commissioner of
484484 insurance or the Texas Department of Insurance.
485485 Sec. 532A.0257. LOW-VALUE PROVIDER COPAYMENT. The med-pool
486486 may require that a participant pay a copayment for services
487487 received from a provider that the commission has designated as a
488488 low-value provider unless a high-value provider is not available to
489489 the participant. The participant may use money in the participant's
490490 health benefit account to pay this expense.
491491 SECTION 2. (a) The executive commissioner of the Health and
492492 Human Services Commission shall:
493493 (1) apply for and actively pursue from the Centers for
494494 Medicare and Medicaid Services or another appropriate federal
495495 agency the waiver as required by Section 532A.0002, Government
496496 Code, as added by this Act, as soon as practicable after the
497497 effective date of this Act; and
498498 (2) begin operating the Texas Plan demonstration
499499 program under Chapter 532A, Government Code, as added by this Act,
500500 not later than September 1, 2026.
501501 (b) The Health and Human Services Commission may delay
502502 implementing this Act until the waiver described by Subsection
503503 (a)(1) of this section is granted.
504504 SECTION 3. This Act takes effect immediately if it receives
505505 a vote of two-thirds of all the members elected to each house, as
506506 provided by Section 39, Article III, Texas Constitution. If this
507507 Act does not receive the vote necessary for immediate effect, this
508508 Act takes effect September 1, 2025.