SB 2547

relating to imposing a moratorium on the awarding of certain
contracts by the Health and Human Services Commission under
Medicaid and the child health plan program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  DEFINITION.  In this Act, "commission" means the
Health and Human Services Commission.
SECTION 2.  MORATORIUM ON NEW CONTRACTS UNDER CERTAIN
MANAGED CARE PROGRAMS.  (a)  This section applies only to the award
of a contract by the commission to a managed care organization to
provide health care services to enrollees under the child health
plan program or Medicaid recipients under the STAR Medicaid managed
care program, including an award that, on the effective date of this
(1)  has not progressed beyond issuance of an intent to
award a contract under the procurement process; or
(2)  is subject to pending litigation.
(b)  Except as provided by Subsection (c), the commission may
not procure or award a contract to which this section applies for
(1)  beginning on the effective date of this Act; and
(2)  ending on the date the commission is next subject
to review under Chapter 325, Government Code (Texas Sunset Act), in
accordance with Section 523.0003, Government Code.
(c)  As appropriate, the commission shall seek to renew each
existing contract with a managed care organization to provide
health care services to enrollees under the child health plan
program or Medicaid recipients under the STAR Medicaid managed care
program.  If a managed care organization elects not to renew an
existing contract or enter into a new contract with the commission
to continue providing health care services in a service region, the
commission may procure and award a new contract with a managed care
organization for that region in accordance with applicable
SECTION 3.  EXPIRATION.  This Act expires on the day
immediately after the date described by Section 2(b)(2) of this
SECTION 4.  FEDERAL AUTHORIZATION.  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 5.  EFFECTIVE DATE.  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, 2025.