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. 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 establishes a framework for nutrition support services, including definitions for community-based nutrition support organizations and medically tailored meals. It outlines the types of services that may be included, such as case management, nutrition counseling, and food prescription programs. The commission is tasked with ensuring that these organizations can provide services without duplicating existing Medicaid services and must submit a biennial report on health outcomes related to these nutrition support services. The changes will take effect on September 1, 2025, and will apply to contracts entered into or renewed after that date.