SRC-AAA S.B. 534 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 534
By: Harris
Jurisprudence
2-19-97
As Filed


DIGEST 

Currently, when a state agency pays for certain medical services, the
state has a right to recover its costs from any payments a patient may
receive in the settlement of a related lawsuit.  Texas could avoid some of
these medical expenditures by identifying potential third-party liability
sources when the suit is initially filed. This bill improves collection
efforts by directing the Health and Human Services Commission to enter
into subrogation contracts as appropriate. 
 
PURPOSE

As proposed, S.B. 534  improves collection efforts by directing the Health
and Human Services Commission to enter into subrogation contracts as
appropriate. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 531B, Government Code, by adding Section
531.0391, as follows: 

Sec. 531.0391. SUBROGATION AND THIRD-PARTY REIMBURSEMENT COLLECTION
CONTRACT. (a) Requires the Health and Human Services Commission
(commission) to enter into contracts to recover money under a subrogation
or third-party reimbursement right held by the commission.  Sets forth the
requirements of the contracts.  

(b) Requires the commission to develop a process  for identifying certain
claims. Requires a health and human services agency to cooperate with a
contractor on a claim of the agency referred to the contractor for
collection.   

(c)  Provides that the commission is not required to enter into a contract
under Subsection (a) if the commission cannot identify a contractor who is
willing to contract with the commission on reasonable terms. Requires the
commission to develop and implement alternative policies to ensure the
collection of money under a subrogation or third-party reimbursement
right, if the commission cannot identify a contractor who is willing to
contract on reasonable terms. 

(d) Authorizes the commission to allow a state agency other than a health
and human services to be a party to contracts required in Subsection (a).
Requires the commission to modify  the contract as necessary to reflect
the services to be provided by the contractor to the additional state
agency. 

SECTION 2. Requires the commission to enter into an initial contract or
implement the alternative policies as required by Section 531.0391,
Government Code, by February 1, 1998. 

SECTION 3. Requires the commission to prepare a report for certain
persons.  Sets forth the contents of the report. 

 SECTION 4. Emergency clause.
  Effective date: upon passage.