TX SB236

Authorizes Medicaid managed care organizations to offer evidence-based mental health, substance use disorder services, and health-related non-medical services as alternatives to services specified in the state Medicaid plan

Removes the requirement that alternative services be approved by the state Medicaid managed care advisory committee before inclusion in contracts

Expands the scope of "in lieu of" services beyond just mental health and substance use disorder services to include broader health-related non-medical services

Requires the Health and Human Services Commission to submit annual reports to the legislature on utilization of these alternative services and to consider their actual costs when setting capitation rates for managed care organizations

Takes effect September 1, 2025, and applies to contracts entered into or renewed on or after that date, with implementation contingent on any necessary federal waivers or authorizations