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.