BG S.B. 162 75(R)BILL ANALYSIS


PUBLIC HEALTH
S.B. 162
By: Barrientos (Raymond)
3-19-97
Committee Report (Unamended)


BACKGROUND

Currently, Texas does not have a program dedicated to the prevention and
treatment of diabetes.  Diabetes is the sixth leading cause of death in
Texas.  According to the Texas Department of Health (TDH), more than
865,000 Texans have diabetes, and experts believe that twice as many cases
may exist undetected.   Studies show that the disease disproportionally
affects Hispanics, African Americans, women, and older people.  

The disease results from the body's inability to produce insulin, a
reduction in the biological effectiveness of insulin, or both. Insulin is
a hormone that aids the body in regulating sugar use and storage in the
body and allows sugar to enter the cells to provide energy. Diabetics run
a higher risk of heart attack, stroke, high blood pressure, nerve disease,
kidney failure, blindness and circulatory problems. Diabetes
disproportionally strikes Hispanics, African Americans, women, and the
elderly.   

Diabetes costs Texans approximately $4 billion in 1992 in direct and
indirect medical costs of lost productivity, according to a report
prepared by the LBJ School of Public Affairs for the Texas Diabetes
Council.  The cost to the state, including its share of Medicaid, was $52
million. Of that amount, TDH, the Texas Rehabilitation Commission, and the
Texas Commission for the Blind spent $18.3 million on diabetes-related
programs. 

Maryland received a Medicaid waiver in 1991 to establish a diabetes care
program as a managed care model.  The goal was to reduce the number of
hospital admissions through improved prevention.  A trial program during
1993 and 1994 resulted in a 40 percent decreased risk of hospital
admission for enrollees the first year, and a 50 percent reduction the
second year.  The program promoted nutrition counseling, case management
and structured outpatient diabetes education programs, which are services
not normally provided by Medicaid.  

PURPOSE

S.B. 162 provides for the development and implementation of a diabetes
care program in selected counties with a high incidence of diabetes and
diabetes death rates. This bill also provides for the education of the
public about diabetes. 

RULEMAKING AUTHORITY 

It is the committee's opinion that this bill expressly grants additional
rulemaking authority to the Health and Human Services Commission (HHSC) in
ARTICLE 1, SECTION 1.02 (a) and to the Commissioner of the Texas
Department of Insurance in ARTICLE 2, Section 2.01 (Art. 21.53D, Sec.
3(a), Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

ARTICLE 1.  TEXAS DIABETES CARE PILOT PROGRAM.

SECTION 1.01. Defines commission, council, and program.

SECTION 1.02. Subsection (a) requires that HHSC develop, by rule, the
Texas Diabetes    Care Program for initial implementation in counties
selected by HHSC with a high  incidence and death rate for diabetes.  

Subsection (b) requires the program to provide continuous care, including
specified preventive services, to Medicaid recipients who have
diabetes-related conditions. Requires the commission to consider the
program operated in Maryland in developing this program. 

Subsection (c) requires the Texas Diabetes Council (council) to administer
the program under the direction of HHSC. 

Subsection (d) requires the HHSC and the council to implement the program
by November 1, 1997, except as provided by Section 1.04 of this article. 

SECTION 1.03.  Requires HHSC to submit an interim written report to the
lieutenant governor and the speaker concerning the effectiveness,
including the cost-effectiveness, of the program, no later than September
1, 1998. Requires HHSC to submit a final report by September 1, 1999. 

SECTION 1.04. Requires HHSC to request a waiver if the commission
determines that this is necessary for implementation.  Allows for delay of
program implementation until the waiver or authorization is granted.  

SECTION 1.05. Establishes September 1, 2001 as the expiration date of this
article.  

ARTICLE 2.  BENEFITS FOR DIABETES CARE PROVIDED UNDER HEALTH BENEFIT PLANS

SECTION 2.01. Amends Subchapter E, Chapter 21, Insurance Code, by adding
Article 21.53D, entitled "Guidelines for Diabetes Care," as follows: 

Sec. 1.  Defines enrollee and health benefit plan. 

Sec. 2. Subsection (a) establishes that the scope of this article applies
only to certain health benefit plans that provides benefits for medical or
surgical costs incurred as a result of a health condition accident, or
sickness.  Provides that this includes individual, group, blanket or
franchise insurance contracts; and health service agreements, to the
extent permitted by ERISA.      

Subsection (b) provides that this article does not apply to a plan that
provides coverage only for a specified disease, accidental death or
dismemberment, disability payments or supplemental liability insurance.
Establishes that the article does not apply to a plan under Chapter 26 of
the Insurance Code, Medicare supplemental policies, workers' compensation
coverage, medical payment insurance issued as part of motor vehicle
insurance policy, or a long-term care plan. 

Sec. 3. Subsection (a) requires the Commissioner of Texas Department of
Insurance (TDI), by rule, and in consultation with the council to adopt
minimum standards for care provided to diabetic enrollees.  

Subsection (b) requires each health care benefit plan to provide benefits
for care, according to the adopted minimum standards of Subsection (a) of
this section. 

Subsection (c) prohibits any deductible, coinsurance or copayment
requirement that exceeds the applicable deductible, coinsurance or
copayment applicable to other similar benefits provided under the plan. 

SECTION 2.02. Requires that the commissioner of TDI, in consultation with
the council, adopt minimum standards of care by September 1, 1998, as
mandated by Article 21.53D, Insurance Code, which was added by this Act. 
 

SECTION 2.03. Establishes that this article only applies to health benefit
plans issued or renewed by January 1, 1999.  Provides that a policy issued
or renewed prior to January 1, 1999, is governed by existing law. 

ARTICLE 3.  DIABETES INFORMATION AND EDUCATION

SECTION 3.01.  Amends Chapter 103, Health and Safety Code, by amending
Section 103.017, and adding Section 103.0175, as follows: 

Sec.  103.017.  PUBLIC AWARENESS AND TRAINING.  Requires the strategy
developed under Subsection (a) to include a plan under which the council
provides public awareness information through businesses, civic
organizations, and similar entities.   Makes conforming and nonsubstantive
changes. 

Sec.  103.0175.  MATERIALS FOR SCHOOL-BASED AND SCHOOL-LINKED CLINICS.
Requires the council, in consultation with the TDH to develop and make
available materials that provide information about diabetes to be
distributed to students and the parents of students by health clinics at
public primary or secondary schools. 

SECTION 3.02. Amends Section 28.002, Education Code, by adding subsection
(k) to require the State Board of Education, in consultation with TDH and
the council to develop a diabetes education program for school districts
to use in health curriculum under Section 28.002(a)(2)(B), Education Code. 

ARTICLE 4.  EFFECTIVE DATE, EMERGENCY CLAUSE

SECTION 4.01. This act takes effect September 1, 1997.

SECTION 4.02. Emergency clause.