Bill > HB3505

This bill establishes a new legal framework for health care provider participation districts in specific local governments in Texas, focusing on creating a mechanism for nonpublic hospitals to contribute mandatory payments that can be used to provide additional Medicaid supplemental payments. The bill applies to local governments in certain counties with specific population sizes and allows these districts to create a health care provider participation program where institutional health care providers (nonpublic hospitals) can be required to pay up to 6% of their net patient revenue. These mandatory payments will be collected and deposited into a local provider participation fund, which can only be used for specific purposes such as funding intergovernmental transfers to support Medicaid payments, covering administrative expenses (limited to $150,000), and potentially refunding payments. The bill includes detailed provisions about the district's governance, including how board members are appointed, their qualifications, and term lengths, and establishes strict rules about how funds can be collected and used. Importantly, the bill explicitly prohibits using these funds to expand Medicaid eligibility under the Affordable Care Act and requires transparency through annual public hearings and reporting to the Health and Human Services Commission. The legislation is designed to provide a structured, regulated method for local governments to support healthcare funding through a collaborative, hospital-supported mechanism.