SRC-HRD H.B. 2017 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2017
By: Maxey (Shapleigh)
Health & Human Services
5-12-97
Engrossed


DIGEST 

In 1989, Texas Tech University Health Science Center (TTUHSC) received a
federal demonstration grant from the U.S. Department of Health and Human
Services Office of Rural  Health Policy.  With the funding from this
grant, HealthNet, the state's largest telemedicine system, was created.
HealthNet connects TTUHSC's four West Texas campuses with rural health
care facilities and prisons.  The system provides various medical services
that include interactive video consultations, teleradiology, health care
consultations from prisons, and continuing education.
Currently, the telemedicine system is supported through funds from the
medical school.  The consulting physicians are staff of the health science
center, and do not receive any reimbursement from Medicaid, Medicare, or
private payers.  The State Comptroller's Texas Performance Review Report,
Disturbing the Peace:  The Challenge of Change, recommended that the State
Medicaid Office establish procedures to reimburse providers who offer
services by telemedicine.    

H.B. 2017 would require the Health and Human Services Commission to
develop and implement a system to reimburse providers for services
performed using telemedicine.                   

PURPOSE

As proposed, H.B. 2017 requires the Health and Human Services Commission
to develop and implement a system to reimburse providers for services
performed using telemedicine.                                              
RULEMAKING AUTHORITY

Rulemaking authority is granted to the Health and Human Services
Commission under SECTION 1 (Section 531.0215, Government Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 531B, Government Code, by adding Section
531.0215, as follows: 

Sec. 531.0215.  PARTICIPATION AND REIMBURSEMENT OF TELEMEDICINE SERVICE
PROVIDERS UNDER MEDICAID.  Requires the Health and Human Services
Commission (commission), by rule, to develop and implement a system to
reimburse providers of services under the state Medicaid program for
services performed using telemedicine.  Sets forth requirements for the
commission in developing the system. Requires the commission to encourage
teaching hospitals, small rural hospitals, federally qualified health
centers, and state-owned health care facilities to participate as
telemedicine service providers in the health care delivery system.
Defines "telemedicine." 

SECTION 2. Requires Texas Tech University, as soon as practicable after
the effective date of this Act, and with the cooperation of the
commission, to contact the Health Care Financing Administration regarding
approval of the federal waiver submitted before the effective date of this
Act to allow Texas Tech University to receive reimbursement under the
federal research and demonstration project for telemedicine services
provided under the Medicare program. 

SECTION 3. Emergency clause.
  Effective date: upon passage.