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