The Appropriations Subcommittee on Article II met to hear invited and public testimony on Interim Charges 11, 12, and 18(g). This report covers Interim Charge 12: Review the state's readiness to care for aging Texans by reviewing the reimbursement methodologies for nursing homes and assisted living facilities, including supplemental payments, Medicaid add-on payments, and availability of alternative methods of finance. Identify methodologies to adequately finance Medicaid rates for long-term care facilities under managed care capitation, support high-quality care for Texas seniors, accommodate new models of care, and encourage care coordination to treat higher incidence of complex conditions.