73R7104 PB-F
          By Johnson                                            H.B. No. 2710
          Substitute the following for H.B. No. 2710:
          By Marchant                                       C.S.H.B. No. 2710
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the operation of the Texas public school retired
    1-3  employees group insurance program and to the creation of a
    1-4  coordinated care network for that program.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 2(10), Article 3.50-4, Insurance Code, is
    1-7  amended to read as follows:
    1-8              (10)  "Retiree" means:
    1-9                    (A)  a person who has retired under the Teacher
   1-10  Retirement System of Texas, as provided by Subtitle C, Title 8,
   1-11  Government Code, with at least 10 <or more> years of service credit
   1-12  in the retirement system for actual service in Texas public schools
   1-13  and who is not eligible to be covered by a plan provided under the
   1-14  Texas Employees Uniform Group Insurance Benefits Act (Article
   1-15  3.50-2, Vernon's Texas Insurance Code), or under the Texas State
   1-16  College and University Employees Uniform Insurance Benefits Act
   1-17  (Article 3.50-3, Vernon's Texas Insurance Code); or
   1-18                    (B)  a person who has retired as a disability
   1-19  retiree under Subtitle C, Title 8, Government Code, and is entitled
   1-20  to receive monthly benefits from the retirement system.
   1-21        SECTION 2.  Section 8, Article 3.50-4, Insurance Code, is
   1-22  amended by adding Subsection (l) to read as follows:
   1-23        (l)  The trustee may contract directly with health care
    2-1  providers to provide benefits to participants in the program.
    2-2  Those benefits may include dental care, eye care, hospital care,
    2-3  surgical care and treatment, medical care and treatment,
    2-4  obstetrical care, and prescription drugs, medicines, and prosthetic
    2-5  devices.
    2-6        SECTION 3.  Article 3.50-4, Insurance Code, is amended by
    2-7  adding Section 18C to read as follows:
    2-8        Sec. 18C.  COORDINATED CARE NETWORK.  (a)  The trustee may
    2-9  take action as it determines to be necessary to implement and
   2-10  administer a coordinated care network for the program.  The trustee
   2-11  may contract with health care practitioners or facilities and may
   2-12  establish credentialing committees to evaluate the qualifications
   2-13  of those practitioners and facilities.
   2-14        (b)  The trustee may contract with additional individuals or
   2-15  entities as the trustee determines to be necessary to implement and
   2-16  administer the network.
   2-17        (c)  The trustee, the Texas public school retired employees
   2-18  group insurance program, the retired school employees group
   2-19  insurance fund, and the board of trustees, officers, advisory
   2-20  committee members, and employees of the trustee are not liable for
   2-21  damages arising from the acts or omissions of health care providers
   2-22  who are participating health care providers in the coordinated care
   2-23  network established by the trustee.  Those health care providers
   2-24  are independent contractors and are responsible for their own acts
   2-25  and omissions.
    3-1        (d)  The trustee, the Texas public school retired employees
    3-2  group insurance program, the retired school employees group
    3-3  insurance fund, or a member of a credentialing committee, or the
    3-4  board of trustees, officers, advisory committee members, or
    3-5  employees of the trustee are not liable for damages arising from
    3-6  any act, statement, determination, recommendation made, or act
    3-7  reported, without malice, in the course of the evaluation of the
    3-8  qualifications of health care providers or of the patient care
    3-9  rendered by those providers.
   3-10        (e)  Except as otherwise provided by this article, all
   3-11  proceedings and records of a credentialing committee are
   3-12  confidential, and all communications made to a credentialing
   3-13  committee are privileged.  The proceedings of a credentialing
   3-14  committee are not subject to the open meetings law, Chapter 271,
   3-15  Acts of the 60th Legislature, Regular Session, 1967 (Article
   3-16  6252-17, Vernon's Texas Civil Statutes), and its subsequent
   3-17  amendments.  Except to the extent required by the constitution of
   3-18  this state or the United States, the records and proceedings of a
   3-19  credentialing committee and a communication made to a credentialing
   3-20  committee are not subject to court subpoena.
   3-21        (f)  An individual, a health care provider, or a medical peer
   3-22  review committee that, without malice, participates in a
   3-23  credentialing committee activity or furnishes records, information,
   3-24  or assistance to a credentialing committee is not liable for
   3-25  damages arising from that act.
    4-1        (g)  Disclosure of confidential credentialing committee
    4-2  information to the affected health care provider that is relevant
    4-3  to the matter under review does not constitute a waiver of the
    4-4  confidentiality requirements imposed under this article.
    4-5        (h)  A written or oral communication made to a credentialing
    4-6  committee, and the records and proceedings of such a committee, may
    4-7  be disclosed to appropriate state or federal agencies, national
    4-8  accreditation bodies, state boards of registration or licensure, or
    4-9  medical peer review committees.  A disclosure under this subsection
   4-10  does not constitute a waiver of the confidential and privileged
   4-11  nature of the information.
   4-12        (i)  A credentialing committee, a person participating in a
   4-13  credentialing review, a health care provider, the trustee, the
   4-14  Texas public school retired employees group insurance program, or
   4-15  the board of trustees, officers, advisory committee members, or
   4-16  employees of the trustee that are named as defendants in any civil
   4-17  action filed as a result of participation in the credentialing
   4-18  process may use otherwise confidential information obtained for
   4-19  legitimate internal business and professional purposes, including
   4-20  use in their own defense.  Use of information under this subsection
   4-21  does not constitute a waiver of the confidential and privileged
   4-22  nature of the information.
   4-23        (j)  In this section, "health care provider" means an
   4-24  individual licensed as a health care practitioner, or a health care
   4-25  facility.
    5-1        SECTION 4.        This Act takes effect September 1, 1993,
    5-2  except that Section 3 takes effect immediately on passage of this
    5-3  Act.
    5-4        SECTION 5.  The importance of this legislation and the
    5-5  crowded condition of the calendars in both houses create an
    5-6  emergency and an imperative public necessity that the
    5-7  constitutional rule requiring bills to be read on three several
    5-8  days in each house be suspended, and this rule is hereby suspended,
    5-9  and that this Act take effect and be in force according to its
   5-10  terms, and it is so enacted.