H. B. 3150


(By Delegates Varner, Michael,
Compton, Craig and Leach)
[Introduced March 30, 2001; referred to the
Committee on Government Organization then Finance.]



A BILL to amend and reenact section five, article three, chapter five-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend article two, chapter nine of said code by adding thereto a new section, designated section nine-a, all relating to authorizing medicaid to execute contracts for professional health care, health care related consulting, managed care, actuarial and health care related monitoring, quality review/utilization; exempting medicaid from the purchasing division requirements and establishing a bidding process; and authorizing workers' compensation to execute contracts professional health care, prescription drug purchasing programs, health care related consulting, managed care, actuarial and health care related monitoring and quality review/utilization; exempting workers compensation from the purchasing requirements; and establishing a bidding process.

Be it enacted by the Legislature of West Virginia:
That section five, article three, chapter five-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that article two, chapter nine of said code be amended by adding thereto a new section, designated section nine-a, all to read as follows:
CHAPTER 5A. DEPARTMENT OF ADMINISTRATION.

ARTICLE 3. PURCHASING DIVISION.
§5A-3-5. Purchasing section standard specifications-Promulgation and adoption by director; applicable to all purchases.

 (a) The director shall promulgate and adopt standard specifications based on scientific and technical data for appropriate commodities, which shall establish the quality to which such commodities to be purchased and services to be contracted for by the state must conform. Standard specifications shall apply to every future purchase of or contract for the commodities described in the specifications. The purchases of no spending unit may be exempt from compliance with the standard specifications so established, but the director, whenever he deems it necessary and advisable, may exempt therefrom the purchase of particular items. The director shall update the standard specifications, as necessary.
(b) Notwithstanding the provision of subsection (a) of this section to the contrary:
(1) The commissioner of the bureau of employment programs is hereby given authorization to execute such contract or contracts as are necessary to implement professional health care, prescription drug purchasing programs, health care related consulting, managed care, actuarial and health care related monitoring and quality review/utilization for the workers' compensation program;
(2) The provisions of article three, chapter five-a of this code shall not apply to any contract or contracts for professional health care, prescription drug purchasing programs, health care related consulting, managed care, actuarial and health care related monitoring and quality review/utilization. Before entering into any contracts for any professional health care, prescription drug purchasing programs, health care related consulting, managed care, actuarial and health care related monitoring and quality review/utilization for the workers' compensation program, as herein authorized, the commissioner of the bureau of employment programs shall invite competent sealed bids from all qualified vendors of said services. The commissioner shall develop specifications and receive proposals and quotations for bid purposes. Bids shall be obtained by public notice and by soliciting sealed bids by sending requests to prospective vendors. The commissioner shall award such contract or contracts on a competitive bid basis. In awarding the contract or contracts, the commissioner shall take into consideration the experience of the offering vendor together with the cost to the state;
(3) The commissioner may at the end of any contract period discontinue any contract or contracts executed pursuant to this article.
CHAPTER 9. HUMAN SERVICES.

ARTICLE 2. DEPARTMENT OF HEALTH AND HUMAN RESOURCES, AND OFFICE OF COMMISSIONER OF HUMAN SERVICES; POWERS, DUTIES AND RESPONSIBILITIES GENERALLY.
§9-2-9a. Authorization to execute contracts for professional health care, managed care and actuarial contracts.

(a) The secretary is hereby given authorization to execute such contract or contracts as are necessary to implement professional health care, health care related consulting, managed care, actuarial and health care related monitoring, quality review/utilization, claims processing and third party recoveries for the medicaid program.
(b) The provisions of article three, chapter five-a of this code shall not apply to any contract or contracts for professional health care, prescription drug purchasing programs, health care related consulting, managed care, actuarial and health care related monitoring, quality review/utilization, claims processing and third party recoveries for the medicaid program. Before entering into any contracts for any professional health care, prescription drug purchasing programs, health care related consulting, managed care, actuarial and health care related monitoring, quality review/utilization, claims processing and third party recoveries for the medicaid program, as herein authorized, the secretary shall invite competent sealed bids from all qualified vendors of said services. The secretary shall develop specifications and receive proposals and quotations for bid purposes. Bids shall be obtained by public notice and by soliciting sealed bids by sending requests to prospective vendors. The secretary shall award such contract or contracts on a competitive bid basis. In awarding the contract or contracts, the secretary shall take into consideration the experience of the offering vendor together with the cost to the state.
(c) The secretary may at the end of any contract period discontinue any contract or contracts executed pursuant to this article.



NOTE: The purpose of this bill is to enable medicaid and workers' compensation to execute contracts for health care related services without going through the purchasing division requirements.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

§9-2-9a is new; therefore, strike-throughs and underscoring have been omitted.