The bill, H.B. No. 2946, aims to enhance nutrition support services for Medicaid recipients by allowing these services to be provided in lieu of certain state Medicaid plan services. Specifically, it amends Section 540.0272 of the Government Code to permit Medicaid managed care organizations to offer medically appropriate, cost-effective, evidence-based mental health or substance use services, as well as nutrition support services approved by the commission. The bill also mandates that the commission submit an annual report to the legislature detailing the usage of these services and their associated costs when setting capitation rates for Medicaid managed care organizations.

Additionally, the bill introduces Section 540.02721, which outlines the definition and requirements for community-based nutrition support organizations and establishes a framework for implementing nutrition support services. It includes provisions for a biennial report on health outcomes related to these services, assessing metrics such as hemoglobin A1c levels and emergency room visits. The bill emphasizes the importance of ensuring that recipients do not receive duplicate services under Medicaid and establishes a separate provider type for community-based nutrition support organizations for enrollment and reimbursement purposes. The changes will take effect on September 1, 2025.