Texas Senate Approves Medicaid Reform Legislation, Allows ACO-Like Arrangements

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The Texas Senate has approved two pieces of legislation that would reform how its Medicaid program reimburses providers, according to a Texas Tribune report.

The first bill, Senate Bill 7, would allow providers to set-up ACO-like arrangements for Medicaid patients and reduces payments for preventable readmissions and complications. It would also require patients to make co-payments for unnecessary ER visits, according to the report.

The second bill, Senate Bill 8, would help non-Medicaid insurers move toward pay-for-performance by establishing the Texas Institute of Health Care Quality and Efficiency. The 15-person board would explore ways to link payments to outcomes and determine the feasibility of developing a centralized cost database to compare costs across providers, according to the report.

The bills now move to the Texas House of Representatives.

Read the Texas Tribune report on Texas Medicaid.

Read previous coverage on Texas Medicaid:

- Texas Eyes Medicaid Overhaul to Allow ACO-Like Arrangements

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