H.B. No. 2540
 
 
 
 
AN ACT
  relating to implementing a pilot project to simplify, streamline,
  and reduce costs associated with the Medicaid cost reporting and
  auditing process for certain providers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 531, Government Code, is
  amended by adding Section 531.02114 to read as follows:
         Sec. 531.02114. PILOT PROJECT TO SIMPLIFY, STREAMLINE, AND
  REDUCE COSTS ASSOCIATED WITH MEDICAID COST REPORTING AND AUDITING
  PROCESS FOR CERTAIN PROVIDERS. (a) In this section:
               (1)  "Pilot project" means the pilot project to
  simplify, streamline, and reduce costs associated with the Medicaid
  cost reporting and auditing process for providers implemented by
  the commission under this section.
               (2)  "Provider" means a private ICF-MR facility or home
  and community-based services waiver program provider.
         (b)  The commission shall develop and implement a pilot
  project to simplify, streamline, and reduce costs associated with
  the Medicaid cost reporting and auditing process for private ICF-MR
  facilities and home and community-based services waiver program
  providers.
         (c)  The executive commissioner by rule shall, with the
  assistance of the work group established under Subsection (d),
  adopt cost reporting and auditing processes and guidelines similar
  to standard business financial reporting processes and guidelines.
  The rules must:
               (1)  require that cost report forms:
                     (A)  not exceed 20 letter-size pages in length,
  including any appendices; and
                     (B)  be distributed to providers at least one
  month before the beginning of the applicable reporting period;
               (2)  require that a provider summarize information
  regarding program revenue, administrative costs, central office
  costs, facility costs, and direct-care costs, including the hourly
  wage detail of direct-care staff;
               (3)  allow a provider to electronically submit cost
  reports;
               (4)  require the filing of cost reports in alternating
  years as follows:
                     (A)  in even-numbered years, private ICF-MR
  facility providers; and
                     (B)  in odd-numbered years, home and
  community-based services waiver program providers;
               (5)  allow a provider to request and receive from the
  commission information, including reports, relating to the
  services provided by the provider that is maintained by the
  commission in a database or under another program or system to
  facilitate the cost reporting process; and
               (6)  require that each provider receive a full audit by
  the commission's office of inspector general at least once during
  the period the pilot project is in operation.
         (d)  In developing the pilot project, the commission shall
  establish a work group that reports to the executive commissioner
  and is responsible for:
               (1)  developing and proposing cost report forms and
  processes, audit processes, and rules necessary to implement the
  pilot project;
               (2)  developing:
                     (A)  a plan for monitoring the pilot project's
  implementation; and
                     (B)  recommendations for improving and expanding
  the pilot project to other Medicaid programs;
               (3)  establishing an implementation date for the pilot
  project that allows the commission to have sufficient information
  related to the pilot project for purposes of preparing the
  commission's legislative appropriations request for the state
  fiscal biennium beginning September 1, 2009;
               (4)  monitoring wage levels of the direct-care staff of
  providers to assess the value and need for minimum spending levels;
  and
               (5)  submitting a quarterly report to the lieutenant
  governor, the speaker of the house of representatives, the senate
  finance committee, and the house appropriations committee
  regarding the status of the pilot project.
         (e)  The executive commissioner shall determine the number
  of members of the work group described by Subsection (d). The
  executive commissioner shall ensure that the work group includes
  members who represent:
               (1)  public and private providers of ICF-MR services
  and home and community-based waiver program services;
               (2)  experienced cost report preparers who have
  received cost report training from the commission;
               (3)  accounting firms licensed under Chapter 901,
  Occupations Code, that are familiar with the provision of program
  services described by Subdivision (1);
               (4)  commission staff; and
               (5)  other interested stakeholders, as determined by
  the executive commissioner.
         (f)  Not later than September 1, 2012, the commission shall
  submit a report to the legislature that:
               (1)  evaluates the operation of the pilot project; and
               (2)  makes recommendations regarding the continuation
  or expansion of the pilot project.
         (g)  This section expires September 1, 2013.
         SECTION 2.  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 3.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2540 was passed by the House on May
  11, 2007, by the following vote:  Yeas 144, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2540 was passed by the Senate on May
  23, 2007, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor