SRC-JBJ S.B. 1063 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1063
76R3254 AJA-FBy: Fraser
Economic Development
4/19/1999
As Filed


DIGEST 

Currently, health care providers and physicians in rural areas may choose
an alternative, the Rural Health Care System, from an urban-based
management care organization or hospital network.  An area may receive
eligibility for the system if the area is considered rural as determined by
its population (less than 50,000 persons), delineated by the U.S. Census
Bureau, or declared by the commissioner of insurance.  The criteria used by
the commissioner may be amended to consider other factors when declaring a
rural area.  S.B. 1063 would require the commissioner to consider certain
criteria in designating rural areas, amend language regarding prepaid
health care services, and authorize the commissioner to provide, by rule,
exceptions to the application of the Texas Health Maintenance Organization
Act.  S.B. 1063 also would amend regulations governing the board of
directors of the statewide rural health care system and the advisory
committee of the board of directors. 

PURPOSE

As proposed, S.B. 1063 makes changes to the operation of a statewide rural
health care system. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the commissioner of insurance under
SECTION 3 (Article 20C.04(b), Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 20C.02, Insurance Code, to redefine "rural area."
Requires the commissioner of insurance (commissioner) to consider certain
areas regarding the designation of a rural area. 

SECTION 2.Amends Article 20C.03, Insurance Code, to establish a statewide
rural health care system to provide health care services, including
services on a prepaid basis, to rural enrollees. 

SECTION 3.  Amends Article 20C.04, Insurance Code, to authorize the
commissioner to provide exceptions, by rule, to the application of Chapter
20A, Insurance Code (Texas Health Maintenance Organization Act), to
accommodate special circumstances surrounding rural service areas.  Makes
conforming changes. 

SECTION 4.  Amends Article 20C.07(a), Insurance Code, to provide that
members of the board of the statewide rural health care system (board)
serve staggered terms expiring December 1 of each even-number year, rather
than February 1 of each odd-numbered year. 

SECTION 5.  Amends Article 20C.08(f), Insurance Code, to authorize, rather
than require, the board to appoint an advisory committee to represent
certain health care services.  Requires the advisory committee to meet at
the will of the board and advise the board on any matters as directed by
the board.  Deletes composition requirements of the advisory committee. 

SECTION 6.(a)  Effective date: September 1, 1999.

(b)  Makes application of this Act prospective for the expiration of a
board members term  to December 1 of the year before the year the term was
to expire under Chapter 20C, Insurance Code. 

 SECTION 7.Emergency clause.