MINUTES SENATE INTERIM COMMITTEE ON HEALTH AND HUMAN SERVICES Friday, May 29, 1998 9 a.m. Senate Chamber ***** Pursuant to a notice posted in accordance with Senate Rule 11.11, a public hearing of the Senate Interim Committee on Health and Human Services was held on Friday, May 29, 1998, in the Senate Chamber at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Judith Zaffirini, Chair Senator Chris Harris Senator John Carona Senator Jon Lindsay Senator Frank Madla ***** The chair called the meeting to order at 9 a.m. There being a quorum present, the following business was transacted. The chair laid out the October 7, 1997, and the January 22, 1998, minutes and called for revisions. There being none, Senator Madla moved approval. There being no objection, the motion prevailed by unanimous consent. The chair made opening remarks and announced that the purpose of the meeting was to receive progress reports and preliminary recommendations regarding the charges issued to the committee by Lt. Gov. Bob Bullock. The chair called invited panelists to present progress reports and preliminary recommendations regarding the implementation of SB 30 by Sen. Judith Zaffirini and Rep. Glen Maxey, relating to fraud and improper payments under the state Medicaid program. The following person provided oral and written testimony: Don Gilbert, commissioner, Texas Health and Human Services Commission, 4900 North Lamar, Austin, Texas 78751. The following persons provided oral testimony: Beth Taylor, director, Medicaid Fraud Control Unit, Office of the Attorney General, P.O. Box 12548, Austin, Texas 78711-25548. Eric Bost, commissioner, Texas Department of Human Services, P.O. Box 149030, Austin, Texas 78714-3011. The chair called the following person who registered as a resource witness on SB 30 to provide oral testimony: Aurora F. LeBrun, associate commissioner, Office of Investigations and Enforcement, Texas Health and Human Services Commission, 4900 N. Lamar, Austin, Texas 78751. The following person registered as a resource witness on SB 30, but did not testify: Randy Washington, deputy commissioner for health care financing, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756. The chair called invited panelists to present progress reports and preliminary recommendations regarding efforts to reduce fraud and improper payments under state Medicaid and welfare programs. The following persons provided oral testimony: Beth Taylor, director, Medicaid Fraud Control Unit, Office of the Attorney General, P.O. Box 12548, Austin, Texas 78711-2548. Don Gilbert, commissioner, Texas Health and Human Services Commission, 4900 North Lamar, Austin, Texas 78751. Eric Bost, commissioner, Texas Department of Human Services, P.O. Box 149030, Austin, Texas 78714-3011. Dr. William Archer, commissioner, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78757. The chair called the following person who registered as a resource witness on Medicaid and welfare fraud to provide oral testimony: Aurora F. LeBrun, associate commissioner, Office of Investigations and Enforcement, Texas Health and Human Services Commission, 4900 N. Lamar, Austin, Texas 78751. The following person registered as a resource witness on Medicaid and welfare fraud, but did not testify: Randy Washington, deputy commissioner for health care financing, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756. The chair called invited panelists to present progress reports and preliminary recommendations regarding federal welfare reform. The following person provided oral and written testimony: Diane Rath, commissioner, Texas Workforce Commission, 101 East 15th Street, Austin, Texas 78778-0001. The following persons provided oral testimony: Eric Bost, commissioner, Texas Department of Human Services, P.O. Box 149030, Austin, Texas 78714-3011. Jorge Vega, first assistant attorney general, Office of the Attorney General, P.O. Box 12548, Austin, Texas 78711-2548. The chair called invited panelists to present progress reports and preliminary recommendations regarding implementation of SB 55 by Sen. Judith Zaffirini and Rep. Hugo Berlanga, relating to minors' access to tobacco. The following persons provided oral testimony: Dr. William Archer, commissioner, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78757. Robin Herskowitz, senior policy analyst, Comptroller of Public Accounts, 111 East 17th Street, Austin, Texas 78711-3528. The following person registered as a resource witness on SB 55, but did not testify: Phil Huang, MD, chief, Bureau of Chronic Disease, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78756. The chair called invited panelists to present progress reports regarding developments in the federal tobacco settlement. The following person provided oral and written testimony: Laurie M. Rich, executive director, Texas Office of State-Federal Relations, 122 C. Street, N.W., Suite 200, Washington, DC 20001. The chair called invited panelists to present progress reports regarding demographic trends of Texas that will impact the health and human services delivery system in the future. The following person provided oral and written testimony: Arturo Hernandez, deputy for programs, Texas Commission on Alcohol and Drug Abuse, 9001 N. IH 35, Suite 105, Austin, Texas 78753. The following persons provided oral testimony: Jim Hine, executive director, Texas Department of Protective and Regulatory Services, P.O. Box 149030, Austin, Texas 78714-9030. Eric Bost, commissioner, Texas Department of Human Services, P.O. Box 149030, Austin, Texas 78714-3011. Dr. William Archer, commissioner, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78757. The chair called invited panelists to present progress reports and preliminary recommendations regarding current practices in patient billing by Texas hospitals and providers of health care to evaluate the accuracy, clarity and timeliness of patient billing. The following person provided oral and written testimony: Dr. Bruce Levy, chair, Health Professions Council, and executive director, Texas State Board of Medical Examiners, 333 Guadalupe, Tower III, Suite 610, Austin, Texas 78768-2018. The following persons provided oral testimony: Phillip A. Caron, chief financial officer, United Regional Health Care System, 1600 Tenth Street, Wichita Falls, Texas 76301. Roy Ray, PhD, legislative volunteer, American Association of Retired Persons, P.O. Box 12786, Austin, Texas 78757. John Evans, hospital licensing director, Health Facility Licensing Division, Texas Department of Health, 1100 West 49th Street, Austin, Texas 78757. Tony Cobos, legal counsel, Texas State Board of Medical Examiners, 333 Guadalupe, Tower III, Suite 610, Austin, Texas 78768-2018. The chair called the following person who registered as a public witness to provide testimony regarding current practices in patient billing. The following person provided oral testimony: Paul B. Handel, president, Harris County Medical Society, 1213 Hermann, Houston, Texas 77004. There being no other witnesses registered or responding to the chair's call for public testimony related to the charges, the chair closed public testimony. The chair announced that anyone wishing to submit recommendations relating to the charges must do so by June 30. An extended staff working group will develop recommendations to be considered by committee members for possible inclusion in the committee's Oct. 1 report to Lt. Gov. Bullock. With no other business to come before the committee and upon a motion by Senator Carona, the chair recessed the committee by unanimous consent at 12:45 p.m., subject to the call of the chair. Senator Judith Zaffirini, Chair Monica D. Cruz, Committee Clerk