85R11733 KKR-D     By: Schwertner S.B. No. 1207       A BILL TO BE ENTITLED   AN ACT   relating to the repeal of certain contracting requirements under   the Medicaid managed care delivery model.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 533.003(a), Government Code, is amended   to read as follows:          (a)  In awarding contracts to managed care organizations,   the commission shall:                (1)  give preference to organizations that have   significant participation in the organization's provider network   from each health care provider in the region who has traditionally   provided care to Medicaid and charity care patients;                (2)  give extra consideration to organizations that   agree to assure continuity of care for at least three months beyond   the period of Medicaid eligibility for recipients;                (3)  consider the need to use different managed care   plans to meet the needs of different populations;                (4)  consider the ability of organizations to process   Medicaid claims electronically; and                (5)  in the initial implementation of managed care in   the South Texas service region, give extra consideration to an   organization that [either:                      [(A)]  is locally owned, managed, and operated, if   one exists[; or                      [(B)     is in compliance with the requirements of   Section 533.004].          SECTION 2.  Section 533.004, Government Code, is repealed.          SECTION 3.  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.