HBA-GUM C.S.S.B. 1588 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 1588
By: Zaffirini
Public Health
5/7/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Texas expended $7.3 billion in 1997 on its Medicaid program. The 75th Texas
Legislature directed the comptroller of public accounts to study the size
and nature of fraud and overpayments in the Medicaid program and other
state health care programs. C.S.S.B. 1588 requires an MCO to submit certain
information to HHSC, and requires an MCO to cooperate with HHSC
investigations. 

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 A, Chapter 533, Government Code, by adding
Section 533.012, as follows:  

Sec. 533.012. INFORMATION FOR FRAUD CONTROL. (a)  Requires each managed
care organization (MCO) contracting with the Health and Human Services
Commission (HHSC) to submit certain specified documents to HHSC.   

(b)  Provides that submitted information must be in a form prescribed by
HHSC, and be updated as required by HHSC.   

(c)  Requires the HHSC office of investigations and enforcement to review
submitted information for fraud in the Medicaid managed care program, as
appropriate.  Authorizes the comptroller of public accounts to review the
information.  

(d)  Provides that for a subcontractor who reenrolled as a provider in the
Medicaid program as required by Section 2.07 (Development of New Provider
Contract), Chapter 1153, Acts of the 75th Legislature, Regular Session,
1997, or who modified a contract in compliance with that section, a managed
care organization is not required to submit, and the provider is not
required to provide, fraud control information different than the
information submitted in connection with the reenrollment or contract
modification. 

(e)  Provides that certain specified information submitted to HHSC under
Subsection (a) is confidential and not subject to disclosure under Chapter
552 (Public Information), Government Code. 

SECTION 2.  Amends Section 533.005, Government Code, to require a contract
between an MCO and HHSC to contain a requirement that the MCO provide
required information, and comply with HHSC investigations and enforcement.  

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Makes application of this Act prospective.

SECTION 5. Emergency clause.
 COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 1 in proposed Section
533.012 (Information for Fraud Control), Government Code, to make a
nonsubstantive change, and add Subsections (d) and (e).  New Subsection (d)
provides that for a subcontractor who reenrolled as a provider in the
Medicaid program, or who modified a contract in a specified manner, a
managed care organization is not required to submit, and the provider is
not required to provide, fraud control information which is not connected
with the reenrollment or contract modification.  New Subsection (e)
provides that information describing a financial or other business
relationship between an organization and a subcontractor providing health
care services under a contract with the Health and Human Services
Commission is confidential, and is not subject to disclosure under Chapter
552 (Public Information), Government Code.