bill on Medicaid contracts with nursing homes

The text as introduced · 378 words

2025S0205-1 03/10/25

By: Hancock
S.B. No. 2578

A BILL TO BE ENTITLED

AN ACT

relating to licensure and contracting for the delivery of medical

assistance by nursing facilities.

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

SECTION 1. Section 32.021, Human Resources Code, is amended

by adding Subsection (t) to read as follows:

(t) The commission shall ensure that contracts for the

delivery of medical assistance to a nursing facility:

(1) are awarded on terms and conditions that are no

more stringent than the federal requirements governing Medicare

certification and enrollment of skilled nursing facilities ;

(2) allow uninterrupted Medicaid payments if:

(A) the new provider meets the requirements of

this chapter and licensure requirements under Chapter 242, Health

and Safety Code;

(B) the new provider assumes the prior provider's

contract terms and conditions that were in effect as of the time of

ownership transfer; and

(C) the new provider enters into a successor

liability agreement with the commission and the prior provider

indicating the new provider agrees to pay the commission for any

liabilities that exist or may be found to exist during the period of

the prior provider's contract with the commission; and

(3) satisfy the requirements of Section 242.033(h),

Health and Safety Code.

SECTION 2. Section 242.033, Health and Safety Code, is

amended by adding Subsection (h) to read as follows:

(h) The department shall ensure that rules adopted under

this section:

(1) provide for a single application for licensure and

contracting for the delivery of medical assistance consistent with

Section 532.0052, Government Code;

(2) require the department to issue a contract for the

delivery of medical assistance within 30 days after the date of

issuance of a temporary change of ownership license as provided by

Section 242.0336(c); and

(3) ensure that vendor payments are made to nursing

facilities within 30 days of the effective date of a contract for

delivery of medical assistance, including requiring any managed

care organization contracts with the commission to provide for

expedited credentialing of nursing facilities consistent with the

commission's rules within 30 days, and that managed care

organizations' contracts with nursing facilities be effective on

the date of the commission's Medicaid contract with such nursing

facilities.

SECTION 3. This Act takes effect September 1, 2025.