Hinojosa Medicaid Moratorium Bill Keeps Current Contractors In Place

The text as introduced · 439 words

89R4913 SCF-D

By: Hinojosa of Hidalgo
S.B. No. 2547

A BILL TO BE ENTITLED

AN ACT

relating to imposing a moratorium on the awarding of certain

contracts by the Health and Human Services Commission under

Medicaid and the child health plan program.

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

SECTION 1. DEFINITION. In this Act, "commission" means the

Health and Human Services Commission.

SECTION 2. MORATORIUM ON NEW CONTRACTS UNDER CERTAIN

MANAGED CARE PROGRAMS. (a) This section applies only to the award

of a contract by the commission to a managed care organization to

provide health care services to enrollees under the child health

plan program or Medicaid recipients under the STAR Medicaid managed

care program, including an award that, on the effective date of this

Act:

(1) has not progressed beyond issuance of an intent to

award a contract under the procurement process; or

(2) is subject to pending litigation.

(b) Except as provided by Subsection (c), the commission may

not procure or award a contract to which this section applies for

the period:

(1) beginning on the effective date of this Act; and

(2) ending on the date the commission is next subject

to review under Chapter 325, Government Code (Texas Sunset Act), in

accordance with Section 523.0003, Government Code.

(c) As appropriate, the commission shall seek to renew each

existing contract with a managed care organization to provide

health care services to enrollees under the child health plan

program or Medicaid recipients under the STAR Medicaid managed care

program. If a managed care organization elects not to renew an

existing contract or enter into a new contract with the commission

to continue providing health care services in a service region, the

commission may procure and award a new contract with a managed care

organization for that region in accordance with applicable

procurement law.

SECTION 3. EXPIRATION. This Act expires on the day

immediately after the date described by Section 2(b)(2) of this

Act.

SECTION 4. FEDERAL AUTHORIZATION. 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 5. EFFECTIVE DATE. This Act takes effect

immediately if it receives a vote of two-thirds of all the members

elected to each house, as provided by Section 39, Article III, Texas

Constitution. If this Act does not receive the vote necessary for

immediate effect, this Act takes effect September 1, 2025.