1-1                                   AN ACT

 1-2     relating to telemedicine services provided under the Medicaid and

 1-3     Medicare programs.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter B, Chapter 531, Government Code, is

 1-6     amended by adding  Section 531.0215 to read as follows:

 1-7           Sec. 531.0215.  PARTICIPATION AND REIMBURSEMENT OF

 1-8     TELEMEDICINE SERVICE PROVIDERS UNDER MEDICAID.  (a)  The commission

 1-9     by rule shall develop and implement a system to reimburse providers

1-10     of services under the state Medicaid program for services performed

1-11     using telemedicine.

1-12           (b)  In developing the system, the commission shall:

1-13                 (1)  review programs and pilot projects in other states

1-14     to determine the most effective method for reimbursement;

1-15                 (2)  establish billing codes and a fee schedule for

1-16     services; and

1-17                 (3)  provide for an approval process before a provider

1-18     can receive reimbursement for services.

1-19           (c)  The commission shall encourage teaching hospitals, small

1-20     rural hospitals, federally qualified health centers, and

1-21     state-owned health care facilities to participate as telemedicine

1-22     service providers in the health care delivery system.  The

1-23     commission may not require that a service be provided to a patient

1-24     through telemedicine when the service can reasonably be provided by

 2-1     a physician through a face-to-face consultation with the patient in

 2-2     the community in which the patient resides or works.  This

 2-3     subsection does not prohibit the authorization of the provision of

 2-4     any service to a patient through telemedicine at the patient's

 2-5     request.

 2-6           (d)  Subject to Section 5.11, Medical Practice Act (Article

 2-7     4495b, Vernon's Texas Civil Statutes), the commission may adopt

 2-8     rules as necessary to implement this section.

 2-9           (e)  In this section, "telemedicine" has the meaning assigned

2-10     by Section 3.606, Public Utility Regulatory Act of 1995 (Article

2-11     1446c-0, Vernon's Texas Civil Statutes).

2-12           SECTION 2.  Subchapter E, Medical Practice Act (Article

2-13     4495b, Vernon's Texas Civil Statutes), is amended by adding Section

2-14     5.11 to read as follows:

2-15           Sec. 5.11.  RULES REGARDING TELEMEDICINE SERVICES.  The

2-16     board, in consultation with the Health and Human Services

2-17     Commission and the commissioner of insurance, may adopt rules as

2-18     necessary to:

2-19                 (1)  ensure that appropriate care is provided to

2-20     Medicaid and Medicare patients who receive services that are

2-21     provided through telemedicine; and

2-22                 (2)  prevent abuse and fraud in the use of telemedicine

2-23     services for Medicaid and Medicare patients, including rules

2-24     relating to filing of claims and records required to be maintained

2-25     in relation to telemedicine.

2-26           SECTION 3.  As soon as practicable after the effective date

2-27     of this Act, Texas Tech University Health Sciences Center, with the

 3-1     cooperation of the Health and Human Services Commission, shall

 3-2     contact the Health Care Financing Administration regarding approval

 3-3     of the federal waiver submitted before the effective date of this

 3-4     Act to allow Texas Tech University Health Sciences Center to

 3-5     receive reimbursement under the federal research and demonstration

 3-6     project for telemedicine services provided under the Medicare

 3-7     program.

 3-8           SECTION 4.  The importance of this legislation and the

 3-9     crowded condition of the calendars in both houses create an

3-10     emergency and an imperative public necessity that the

3-11     constitutional rule requiring bills to be read on three several

3-12     days in each house be suspended, and this rule is hereby suspended,

3-13     and that this Act take effect and be in force from and after its

3-14     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 2017 was passed by the House on May

         7, 1997, by a non-record vote; that the House refused to concur in

         Senate amendments to H.B. No. 2017 on May 23, 1997, and requested

         the appointment of a conference committee to consider the

         differences between the two houses; and that the House adopted the

         conference committee report on H.B. No. 2017 on May 30, 1997, by

         the following vote:  Yeas 145, Nays 0, 1 present, not voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 2017 was passed by the Senate, with

         amendments, on May 21, 1997, by the following vote:  Yeas 31, Nays

         0; at the request of the House, the Senate appointed a conference

         committee to consider the differences between the two houses; and

         that the Senate adopted the conference committee report on H.B. No.

         2017 on May 31, 1997, by the following vote:  Yeas 30, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor