MINUTES SENATE COMMITTEE ON CHILDREN'S HEALTH INSURANCE (INTERIM) Thursday, May 21, 1998 9:30 am Capitol Extension E1.030 ***** Pursuant to a notice posted in accordance with Senate Rule 11.11, a public hearing of the Senate Committee on Children's Health Insurance (Interim) was held on Thursday, May 21, 1998 in Capitol Extension E1.030, at Austin, Texas. Note: The public hearing was a joint hearing of the Senate Interim Committee on Children's Health Insurance, the House Committee on Public Health and the House Committee on Appropriations. The following reflects only information relating to the Senate committee. Minutes for the House committees will be provided by the respective committee staffs. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Mike Moncrief, Chair None Senator Bill Ratliff Senator Eliot Shapleigh ***** The Chair called the meeting to order at 9:45 am. There being a quorum present, the following business was transacted. The following members arrived after the roll was called: none. The Chair made opening remarks, welcomed invited speakers, state agency staff and the public. The Chair announced that the purpose of the hearing was to obtain information relating to the background and plans for the implementation of the Texas Children's Health Insurance Program (hereafter CHIP) authorized by the Federal Balanced Budget Act of 1997 and Title XXI of the Social Security Act. The Chair then called on Senator Bill Ratliff who made brief opening remarks regarding funding sources for the program. The Chair introduced and welcomed Senator Mario Gallegos, Jr. who was present for the hearing although not a member of the Committee. The Chair called the Legislative Budget Board staff, Ms. Maureen McCormack, Mr. Trey Berndt, and Ms. Janice Ehlert, to brief the Committee on the background of and facts related to the CHIP program, and to review the decisions that will have to be made in the development of the Phase II portion of a Texas CHIP plan. The Legislative Budget Board staff responded to questions by Committee Members. The Chair thanked and dismissed the witnesses. The Chair then called Ms. Rhonda Myron, representing the Texas Department of Insurance, to make a presentation regarding the current insurance marketplace in Texas, and the issues of crowd-out and adverse selection as they relate to health insurance coverage for children. Ms. Myron responded to questions from the Committee Members. The Chair thanked and dismissed the witness. The Chair called Ms. Tyrette Hamilton, representing the Texas Healthy Kids Corporation to make a presentation on the status of the program authorized by House Bill 3, 75th Regular Session. Accompanying Ms. Hamilton was Ms. Gwyn Shea, a member of the Texas Healthy Kids Corporation Board. Ms. Hamilton provided the Committee with a status report and answered Members' questions. The Chair thanked and dismissed the witnesses. The Chair recessed the Committee at 12:15 p.m. The Chair reconvened the hearing at 1:30 p.m. and introduced the newly appointed Commissioner of Health & Human Services, Mr. Don Gilbert. The Chair called Ms. Linda Wertz, the Texas State Medicaid Director, to make a presentation on the status of the 1115 Waiver authorized under Senate Bill 10, 74th Regular Session. Ms. Wertz responded to questions by members. The Chair thanked and dismissed the witness. The Chair called Dr.William R. Archer, Texas Commissioner of Health, to make present a CHIP proposal developed by the Texas Department of Health. The Commissioner responded to questions. The Chair thanked and dismissed the witness. The Chair then called Mr. Jason Cooke, Texas Health & Human Services Commission, and Mr. Randy Fritz, Texas Department of Health, to discuss eligibility policy issues relating to CHIP. The witnesses responded to Committee Members questions. The Chair thanked and dismissed the witnesses. The Chair called a panel to further discuss matters related to eligibility policy. The panel members were: David R. Page, Texas Association of Public and Not For Profit Hospitals Anne Dunkelberg, Center for Public Policy Priorities Michael Blanchett, M.D., Texas Medical Association, Texas Association of Family Physicians, and Texas PediatricSociety Bryan Sperry, Children's Hospital Association of Texas The panel testified and responded to questions. The Chair thanked and dismissed the panel. The Chair made closing comments. At 4:40 p.m., Senator Moncrief announced that the Committee would stand recessed subject to call of the Chair. Without objection, it was so ordered. ____________________________________ Senator Mike Moncrief, Chair ____________________________________ Gina Martin, Clerk