HBA-MPM H.B. 2807 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2807 By: Kitchen Public Health 3/20/2001 Introduced BACKGROUND AND PURPOSE Texas has enacted many laws that address the provision of health coverage for its uninsured children. However, low-income adults are often unable to obtain affordable, quality health care. Workers in families that fall below 200 percent of the federal poverty level are less likely to receive health insurance through their employer. More than two-thirds of employed adults aged 18 and older in Texas do not receive health insurance through an employer. A January 1999 poll conducted by the W.K. Kellogg Foundation indicated that 86 percent of Americans believe that working poor families should have access to health care coverage. Currently, there are a number of local initiatives that address the health needs of low-income, uninsured adults who do not qualify for Medicaid. Through a demonstration project, these initiatives could receive federal matching funds to expand health coverage for low-income adults. House Bill 2807 requires the Health and Human Services Commission to establish such a demonstration project. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 2807 amends the Human Resources Code to require the Health and Human Services Commission (HHSC) to establish a demonstration project (project) to provide medical assistance to an adult who has a family income that is at or below 100 percent of the federal poverty level, is not otherwise eligible for medical assistance, and is not covered by a health benefits plan offering adequate coverage. HHSC is required to ensure that the project is financed using funds made available by certain local governmental entities to HHSC for matching purposes to maximize federal funds for the medical assistance program. The bill requires the Texas Department of Health (TDH) to administer the project at the direction of HHSC and to select one or more counties, one of which has at least a population of more than 725,000, in which to implement the project. TDH is required to implement the project no later than January 1, 2002. The bill requires TDH to evaluate and report to the legislature on the operation and cost-effectiveness of the project. EFFECTIVE DATE On passage, of if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.