2017S0406-T 03/06/17     By: Perry S.B. No. 2088     A BILL TO BE ENTITLED   AN ACT   relating to the reimbursement of rural hospitals in the Texas   Medicaid program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle F, Title 1, Health and Safety Code,   Chapter 533, Section 533.002 is amended to read as follows:          Sec. 533.002.  PURPOSE.  The commission shall implement the   Medicaid managed care program by contracting with managed care   organizations in a manner that, to the extent possible:                (1)  improves the health of Texans by:                      (A)  emphasizing prevention;                      (B)  promoting continuity of care; and                      (C)  providing a medical home for recipients;                (2)  ensures that each recipient receives high quality,   comprehensive health care services in the recipient's local   community;                (3)  encourages the training of and access to primary   care physicians and providers;                (4)  maximizes cooperation with existing public health   entities, including local departments of health;                (5)  provides incentives to managed care organizations   to improve the quality of health care services for recipients by   providing value-added services; [and]                (6)  reduces administrative and other nonfinancial   barriers for recipients in obtaining health care services; and                (7)  provides for reimbursement to rural hospitals as   defined in the Texas Medicaid program on a per individual hospital   cost basis using payment methodology established by the commission   that assures rural hospitals recover allowable cost incurred to   provide services to Medicaid beneficiaries.  The commission may   directly reimburse rural hospitals or contract with managed care   organizations to process reimbursement payments however contracts   associated with managed care organizations must allow for full pass   through of allowable cost reimbursement to rural hospitals.          SECTION 2.  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, 2017.