The bill, S.B. No. 3001, amends Section 540.0272 of the Government Code to allow Medicaid managed care organizations to offer nutrition counseling and instruction services as alternatives to certain state Medicaid plan services. Specifically, it permits these organizations to provide medically appropriate, cost-effective, evidence-based mental health or substance use services, as well as nutrition counseling, from a list approved by the state Medicaid managed care advisory committee. The bill removes the previous requirement that these services be in lieu of mental health or substance use disorder services, thereby broadening the scope of services that can be offered.

Additionally, the bill mandates that the commission prepare and submit an annual report to the legislature detailing the usage of these services and requires consideration of their costs when setting capitation rates for Medicaid managed care organizations. It also specifies that the list of nutrition counseling and instruction services must exclude home-delivered meals, food prescriptions, and grocery support. The changes will apply to contracts entered into or renewed on or after the effective date of the Act, which is September 1, 2025.