Bill Caption

Relating to the authority of the Health and Human Services Commission to retain certain money received by the commission to administer certain Medicaid programs.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for SB 2138, Committee Report 2nd House, Substituted: an impact of $0 through the biennium ending August 31, 2021. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

Bill Analysis

SB 2138 would authorize the Health and Human Services Commission (HHSC) to retain up to $8 million of funds received to operate health care programs under the Medicaid program. The commission would not be required to retain the full amount and may retain a lesser amount. The funds would provide for the implementation and administrative costs of certain programs for which the money was received. If the commission determines that more funds are needed to administer the programs, the commission would be permitted to retain an additional .25% of funds with the approval of the governor and the Legislative Budget Board. 

The commission would also be required to submit an annual report to the governor and the Legislative Budget Board detailing use of the funds. 

Vote Recommendation Notes

When this bill appeared in the Senate, Texas Action recommended No; Amend because the bill would have allowed HHSC to retain 1% of funds which would have been about $50 million more than necessary to administer the programs the funds are designated for. We recommended that the amount allowed to be retained be reduced to a lower amount and accountability be required for use of the funds.

CSSB 2138 is in alignment with our amendment recommendations, therefore we have withdrawn our opposition to the bill.