Relating to awarding contracts to managed care organizations under Medicaid and the child health plan program.

This bill changes how Texas awards Medicaid and child health plan contracts to managed care organizations (MCOs). It requires the state commission to prioritize MCOs that: (1) have strong provider networks serving Medicaid/charity care patients, (2) guarantee 3 months of continued care after Medicaid eligibility ends, and (3) meet quality benchmarks. The bill also directs special consideration for locally owned MCOs in South Texas. These changes directly affect MCOs bidding for state Medicaid contracts and aim to improve access and continuity for Medicaid recipients.