(a) The executive commissioner may seek a waiver under Section 1115 of the Social Security Act (42 U.S.C. § 1315) to develop and, subject to Subsection (c), implement tailored benefit packages designed to:
(1) provide Medicaid benefits that are customized to meet the health care needs of recipients within defined categories of the Medicaid population through a defined system of care;
(2) improve health outcomes and access to services for those recipients;
(3) achieve cost containment and efficiency; and
(4) reduce the administrative complexity of delivering Medicaid benefits.
(b) The commission:
(1) shall develop a tailored benefit package that is customized to meet the health care needs of recipients who are children with special health care needs, subject to approval of the waiver described by Subsection (a); and
(2) may develop tailored benefit packages that are customized to meet the health care needs of other categories of recipients.

(c) If the commission develops tailored benefit packages under Subsection (b)(2), the commission shall submit to the standing committees of the senate and house of representatives having primary jurisdiction over Medicaid a report that specifies in detail the categories of recipients to which each of those packages will apply and the services available under each package.
(d) Except as otherwise provided by this section and subject to the terms of the waiver authorized by this section, the commission has broad discretion to develop the tailored benefit packages and determine the respective categories of recipients to which the packages apply in a manner that preserves recipients’ access to necessary services and is consistent with federal requirements. In developing the tailored benefit packages, the commission shall consider similar benefit packages established in other states as a guide.
(e) Each tailored benefit package must include:
(1) a basic set of benefits that are provided under all tailored benefit packages;
(2) to the extent applicable to the category of recipients to which the package applies:
(A) a set of benefits customized to meet the health care needs of recipients in that category; and
(B) services to integrate the management of a recipient’s acute and long-term care needs, to the extent feasible; and
(3) if the package applies to recipients who are children, at least the services required by federal law under the early and periodic screening, diagnosis, and treatment program.
(f) A tailored benefit package may include any service available under the state Medicaid plan or under any federal Medicaid waiver, including any preventive health or wellness service.
(g) A tailored benefit package must increase this state’s flexibility with respect to the state’s use of Medicaid funding and may not reduce the benefits available under the Medicaid state plan to any recipient population.
(h) The executive commissioner by rule shall define each category of recipients to which a tailored benefit package applies and a mechanism for appropriately placing recipients in specific categories. Recipient categories must include children with special health care needs and may include:
(1) individuals with disabilities or special health care needs;
(2) elderly individuals;
(3) children without special health care needs; and
(4) working-age parents and caretaker relatives.

Text of section effective on April 01, 2025