HBA-JRA H.B. 1487 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1487 By: Averitt Public Health 3/12/1999 Introduced BACKGROUND AND PURPOSE The Texas legislature has appropriated $151 million from tobacco settlement funds to apply for federal matching funds to pay for a Children's Health Insurance Program (CHIP). A CHIP proposal will be submitted by the governor to the federal Health Care Financing Administration. H.B. 1487 establishes a CHIP plan to be overseen by the Health and Human Services Commission (HHS). This bill also authorizes HHS to contract with a third party administrator, such as the Texas Health Kids Corporation, and requires the third party to be accountable to HHS with regard to all functions of program operation. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 531, Government Code, by adding Section 531.076, as follows: Sec. 531.076. IMPLEMENTATION OF STATE CHILD HEALTH PLAN. Defines "state child health plan" in this section. Authorizes the Health and Human Services Commission (HHS) to contract with a third party administrator to provide enrollment and related services under the state child health plan or another entity (corporation), including the Texas Healthy Kids Corporation, to obtain health benefit plan coverage for children who are eligible for coverage under the state child health plan. SECTION 2. Amends Chapter 109, Health and Safety Code, by adding Subchapter F, as follows: SUBCHAPTER F. STATE CHILD HEALTH PLAN Sec. 109.201. DEFINITIONS. Defines "commission" as the Health and Human Services Commission and "state child health plan" as a child health plan program to obtain health benefits coverage for low-income children that qualifies for federal funding under Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended. Sec. 109.202. STATE CHILD HEALTH PLAN COVERAGE. (a) Authorizes HHS to use appropriated funds to purchase coverage under a health benefit plan provided through the corporation for children who are eligible for coverage under a state child health plan and to contract with the corporation for other services under this subchapter. (b) Provides that state child health plan coverage offered under this subchapter must be approved by HHS. Requires HHS to ensure that coverage provided under this subchapter is designed and administered in a manner that qualifies for federal funding under Title XXI of the Social Security Act (42 U.S.C. Section 1397aa et seq.), as amended, and any other applicable law or regulations. Sec. 109.203. ELIGIBILITY. Provides that an individual who is eligible for coverage under the state child health plan is eligible for coverage provided through the corporation under this subchapter, notwithstanding any other provision of this chapter or the eligibility criteria established under Section 109.061 (Health Benefit Program), Health and Safety Code. Sec. 109.204. COMMUNITY OUTREACH; ELIGIBILITY SCREENING. (a) Authorizes the corporation, under the direction of HHS, to conduct a community outreach and education program to provide information relating to the availability of health benefits and perform eligibility screening and enrollment services. (b) Provides that the eligibility screening and enrollment services must comply with the requirements of 42 U.S.C. Section 1397bb, as amended, and any other applicable law or regulations, and ensure that Medicaid-eligible children are identified and enrolled in the Medicaid program. Sec. 109.205. REPORTING AND ACCOUNTABILITY. Requires the corporation to report to HHS as required by HHS with respect to coverage and services provided under this subchapter. Requires HHS to establish a procedure to monitor the provision of coverage and services under this subchapter. SECTION 3. Emergency clause. Effective date: upon passage.