bill letting Medicaid plans offer food assistance instead

The text as introduced · 423 words

89R8398 SCF-D

By: Blanco
S.B. No. 1753

A BILL TO BE ENTITLED

AN ACT

relating to requiring contracts with Medicaid managed care

organizations to permit the organizations to offer certain mental

health or substance use services or food and nutrition assistance

services in lieu of other state Medicaid plan services.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 540.0272, Government Code, as effective

April 1, 2025, is amended to read as follows:

Sec. 540.0272. CERTAIN SERVICES PERMITTED IN LIEU OF STATE

MEDICAID PLAN SERVICES [ OTHER MENTAL HEALTH OR SUBSTANCE USE

DISORDER SERVICES ]; ANNUAL REPORT. A contract to which this

subchapter applies must contain language permitting the

contracting Medicaid managed care organization to offer recipients

enrolled in the organization's managed care plan medically

appropriate, cost-effective, evidence-based mental health or

substance use services or food and nutrition assistance services

from a list of services approved by the state Medicaid managed care

advisory committee and included in the contract as services the

organization may provide recipients in lieu of [ mental health or

substance use disorder ] services specified in the state Medicaid

plan. A recipient is not required to use a service from the list

included in the contract in lieu of a [ another mental health or

substance use disorder ] service specified in the state Medicaid

plan. The commission shall:

(1) prepare and submit to the legislature an annual

report on the number of times during the preceding year a service

from the list included in the contract is used; and

(2) consider the actual cost and use of any services

from the list included in the contract that are offered by a

Medicaid managed care organization when setting the capitation

rates for that organization under the contract.

SECTION 2. The changes in law made by this Act apply to a

contract entered into or renewed on or after the effective date of

this Act. A contract entered into or renewed before that date is

governed by the law in effect on the date the contract was entered

into or renewed, and that law is continued in effect for that

purpose.

SECTION 3. If before implementing any provision of this Act

a state agency determines that a waiver or authorization from a

federal agency is necessary for implementation of that provision,

the agency affected by the provision shall request the waiver or

authorization and may delay implementing that provision until the

waiver or authorization is granted.

SECTION 4. This Act takes effect September 1, 2025.