1 | 1 | | By: Harrison H.B. No. 985 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | A BILL TO BE ENTITLED |
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7 | 7 | | AN ACT |
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8 | 8 | | relating to hospital-owned outpatient facilities, including |
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9 | 9 | | site-neutral reimbursement rates under Medicaid. |
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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 A, Chapter 311, Health and Safety |
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12 | 12 | | Code, is amended by adding Section 311.006 to read as follows: |
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13 | 13 | | Sec. 311.006. ACQUISITION OF OUTPATIENT HEALTH CARE |
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14 | 14 | | FACILITIES. (a) In this section: |
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15 | 15 | | (1) "Commission" means the Health and Human Services |
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16 | 16 | | Commission. |
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17 | 17 | | (2) "Hospital" means a hospital licensed under Chapter |
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18 | 18 | | 241. |
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19 | 19 | | (b) A hospital that acquires an outpatient health care |
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20 | 20 | | facility shall provide written notice of the acquisition to the |
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21 | 21 | | office of the attorney general and the commission. |
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22 | 22 | | SECTION 2. Subchapter B, Chapter 32, Human Resources Code, |
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23 | 23 | | is amended by adding Section 32.0286 to read as follows: |
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24 | 24 | | Sec. 32.0286. SITE-NEUTRAL REIMBURSEMENT RATE FOR |
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25 | 25 | | OUTPATIENT SERVICES. (a) In this section, "hospital-owned |
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26 | 26 | | outpatient facility" means a department, unit, clinic, or other |
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27 | 27 | | facility or organization that a hospital provider either creates or |
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28 | 28 | | acquires for the purpose of furnishing outpatient services. The |
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29 | 29 | | term includes a hospital outpatient department. |
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30 | 30 | | (b) Notwithstanding any other law, the commission shall |
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31 | 31 | | ensure the Medicaid reimbursement rate for outpatient services |
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32 | 32 | | provided by a hospital-owned outpatient facility is the same as the |
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33 | 33 | | reimbursement rate for outpatient services an independent, |
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34 | 34 | | physician-owned practice provides if: |
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35 | 35 | | (1) the outpatient services are not dependent on |
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36 | 36 | | technology associated with the facility; and |
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37 | 37 | | (2) evidence-based rationale does not support a |
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38 | 38 | | different reimbursement rate for a specific outpatient service. |
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39 | 39 | | SECTION 3. (a) In this section: |
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40 | 40 | | (1) "Commission" means the Health and Human Services |
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41 | 41 | | Commission. |
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42 | 42 | | (2) "Department" means the Texas Department of |
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43 | 43 | | Insurance. |
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44 | 44 | | (3) "Medicaid" means the medical assistance program |
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45 | 45 | | established under Chapter 32, Human Resources Code. |
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46 | 46 | | (b) The department, in consultation with the commission and |
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47 | 47 | | the office of the attorney general, shall conduct a study on the |
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48 | 48 | | feasibility and advisability of expanding the policy under Section |
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49 | 49 | | 32.0286, Human Resources Code, as added by this Act, to commercial |
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50 | 50 | | health benefit plan issuers in this state by prohibiting the |
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51 | 51 | | issuers from providing provider-based billing rates for outpatient |
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52 | 52 | | services that are greater than the rates provided to independent, |
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53 | 53 | | physician-owned practices providing the same outpatient services. |
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54 | 54 | | (c) Not later than September 1, 2026, the department shall |
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55 | 55 | | prepare and submit to the legislature and the standing committees |
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56 | 56 | | of the legislature with primary jurisdiction over insurance and |
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57 | 57 | | Medicaid a report containing the results of the study conducted |
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58 | 58 | | under Subsection (b) of this section and any recommendations for |
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59 | 59 | | legislative or other action. The report must include an estimate of |
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60 | 60 | | any projected cost savings to health care consumers in this state |
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61 | 61 | | that would result from commercial health benefit plan issuers |
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62 | 62 | | implementing a site-neutral payment policy for outpatient |
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63 | 63 | | services. |
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64 | 64 | | SECTION 4. Not later than January 1, 2026, the executive |
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65 | 65 | | commissioner of the Health and Human Services Commission shall |
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66 | 66 | | adopt or amend rules as necessary to comply with Section 32.0286, |
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67 | 67 | | Human Resources Code, as added by this Act. |
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68 | 68 | | SECTION 5. Section 311.006, Health and Safety Code, as |
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69 | 69 | | added by this Act, applies only to a hospital's acquisition of an |
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70 | 70 | | outpatient facility on or after the effective date of this Act. |
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71 | 71 | | SECTION 6. If before implementing any provision of this Act |
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72 | 72 | | a state agency determines that a waiver or authorization from a |
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73 | 73 | | federal agency is necessary for implementation of that provision, |
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74 | 74 | | the agency affected by the provision shall request the waiver or |
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75 | 75 | | authorization and may delay implementing that provision until the |
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76 | 76 | | waiver or authorization is granted. |
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77 | 77 | | SECTION 7. This Act takes effect September 1, 2025. |
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