Texas Senate Votes to ‘Streamline’ Medicaid By Shifting Program Control

The Texas Senate on April 24 passed a bill (SB 1156) that would shift control of the state's $650 million Medicaid program from the Department of Health to the Health and Human Services Commission, the Ft. Worth Star-Telegram reports. Currently, administrative tasks are "spread among" a variety of state agencies, but the bill would "streamline" the program and eliminate "repetitive paperwork" to save the state about $8 million over the next two-year budget cycle (Ft. Worth Star-Telegram, 4/24). The movement to restructure Medicaid "gained speed" when the state auditor released a report that found accounting errors and the mishandling of federal funds at the health department. In addition to moving Medicaid jurisdiction, the bill requires the commission to seek a federal waiver to allow "limited income" families to receive treatment for bipolar disorder and schizophrenia through Medicaid. The bill also requires the state to draft rules to "recogniz[e] and rewar[d]" physicians who treat a large number of Medicaid patients. The legislation also authorizes the state to charge Medicaid beneficiaries a copayment for prescription drugs. State Sen. Judith Zaffirini (D), the bill's sponsor, said, "We face significant cost increases as fewer Texans receive adequate health care." She added that the bill would "improve the health status of Texans while increasing administrative efficiency, introducing an effective system of checks and balances and improving cost savings" (Gott, Associated Press, 4/24). The measure's companion bill is currently before the House Committee on Public Health. The bill as passed by the Senate is available here.