H.B. No. 3305 establishes a health care provider participation program for counties with populations of one million or more that lack a hospital district. It introduces Chapter 292F to the Health and Safety Code, detailing the program's definitions, applicability, and structure. The program enables counties to collect mandatory payments from institutional health care providers to create a local provider participation fund, which can be utilized for Medicaid payments and other health care-related expenses. Key provisions include public hearings by the commissioners court on mandatory payments, the establishment of a local fund, and a cap on total mandatory payments not exceeding six percent of the aggregate net patient revenue from hospital services in the county. The program's authority is set to expire on December 31, 2030.

The bill also outlines new provisions for assessing and collecting mandatory payments to fund the nonfederal share of certain Medicaid programs, including a cap on annual revenue for administrative expenses at $150,000 plus collateralization costs. It prohibits providers from passing mandatory payments as surcharges to patients and allows counties to collect or contract for these payments, with a collection fee not exceeding the provider's usual charges. Any collected revenue must go into the county general fund if collected by a county official. Additionally, the bill emphasizes compliance with federal requirements for matching funds, restricts counties from collecting payments for general revenue, and mandates the transfer of remaining funds to health care providers after the program's expiration. The act will take effect immediately upon a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

Statutes affected:
Introduced: Health and Safety Code 300.0155 (Health and Safety Code 300)
House Committee Report: (Health and Safety Code 300)