By Gray                                               H.B. No. 3785
         76R374 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to coverage for services provided through telemedicine
 1-3     under certain health plans.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article 21.53F, Insurance Code, as added by
 1-6     Chapter 880, Acts of the 75th Legislature, Regular Session, 1997,
 1-7     is redesignated as Article 21.53Z, Insurance Code, and amended to
 1-8     read as follows:
 1-9           Art. 21.53Z. [21.53F.]  TELEMEDICINE
1-10           Sec. 1.  DEFINITIONS.  In this article:
1-11                 (1)  "Health benefit plan" means a plan described by
1-12     Section 2 of this article.
1-13                 (2)  "Telemedicine" means the use of interactive audio,
1-14     video, or other electronic media to deliver health care.  The term
1-15     includes the use of electronic media for diagnosis, consultation,
1-16     treatment, transfer of medical data, and medical education.  The
1-17     term does not include services performed using a telephone or
1-18     facsimile machine.
1-19           Sec. 2.  SCOPE OF ARTICLE.  (a)  This article applies only to
1-20     a health benefit plan that:
1-21                 (1)  provides benefits for medical or surgical expenses
1-22     incurred as a result of a health condition, accident, [or]
1-23     sickness, or specified disease, including:
1-24                       (A) an individual, group, blanket, or franchise
 2-1     insurance policy or insurance agreement, a group hospital service
 2-2     contract, or an  individual or group evidence of coverage that is
 2-3     offered by:
 2-4                             (i)  an insurance company;
 2-5                             (ii)  a group hospital service corporation
 2-6     operating under Chapter 20 of this code;
 2-7                             (iii)  a fraternal benefit society
 2-8     operating under Chapter 10 of this code;
 2-9                             (iv)  a stipulated premium insurance
2-10     company operating under Chapter 22 of this code; [or]
2-11                             (v)  a health maintenance organization
2-12     operating under the Texas Health Maintenance Organization Act
2-13     (Chapter 20A, Vernon's Texas Insurance Code); or
2-14                             (vi)  a small employer carrier operating
2-15     under Chapter 26 of this code; or
2-16                       (B)  to the extent permitted by the Employee
2-17     Retirement Income Security Act of 1974 (29 U.S.C. Section 1001 et
2-18     seq.), a health benefit plan that is offered by a multiple employer
2-19     welfare arrangement as defined by Section 3, Employee Retirement
2-20     Income Security Act of 1974 (29 U.S.C. Section 1002), or another
2-21     analogous benefit arrangement; [or]
2-22                 (2)  is offered by an approved nonprofit health
2-23     corporation that is certified under Section 5.01(a), Medical
2-24     Practice Act (Article 4495b, Vernon's Texas Civil Statutes), and
2-25     that holds a certificate of authority issued by the commissioner
2-26     under Article 21.52F of this code;
2-27                 (3)  provides coverage as a supplement to liability
 3-1     insurance;
 3-2                 (4)  provides workers' compensation insurance coverage;
 3-3     or
 3-4                 (5)  provides medical payment insurance as part of a
 3-5     motor vehicle insurance policy.
 3-6           (b)  This article does not apply to:
 3-7                 (1)  a plan that provides coverage:
 3-8                       (A)  [only for a specified disease;]
 3-9                       [(B)]  only for accidental death or
3-10     dismemberment; or
3-11                       (B) [(C)]  for wages or payments in lieu of wages
3-12     for a period during which an employee is absent from work because
3-13     of sickness or injury; [or]
3-14                       [(D)  as a supplement to liability insurance;]
3-15                 (2)  [a small employer health benefit plan written
3-16     under Chapter 26 of this code;]
3-17                 [(3)]  a Medicare supplemental policy as defined by
3-18     Section 1882(g)(1), Social Security Act (42 U.S.C. Section 1395ss);
3-19                 [(4)  workers' compensation insurance coverage;]
3-20                 [(5)  medical payment insurance issued as part of a
3-21     motor vehicle insurance policy;] or
3-22                 (3) [(6)]  a long-term care policy, including a nursing
3-23     home fixed indemnity policy, unless the commissioner determines
3-24     that the policy provides benefit coverage so comprehensive that the
3-25     policy is a health benefit plan as described by Subsection (a)  of
3-26     this section.
3-27           Sec. 3.  COVERAGE FOR TELEMEDICINE SERVICES.  (a)  A health
 4-1     benefit plan may not exclude a service from coverage under the plan
 4-2     solely because the service is provided through telemedicine and not
 4-3     provided through a face-to-face consultation.
 4-4           (b)  Benefits for a service provided through telemedicine
 4-5     required under this article may be made subject to a deductible,
 4-6     copayment, or coinsurance requirement.  A deductible, copayment, or
 4-7     coinsurance applicable to a particular service provided through
 4-8     telemedicine may not exceed the deductible, copayment, or
 4-9     coinsurance required by the health benefit plan for the same
4-10     service provided through a face-to-face consultation.
4-11           Sec. 4.  INFORMED CONSENT.  A treating physician or other
4-12     health care provider who provides or facilitates the use of
4-13     telemedicine shall ensure that the informed consent of the patient,
4-14     or another appropriate person with authority to make health care
4-15     treatment decisions for the patient, is obtained before services
4-16     are provided through telemedicine.
4-17           Sec. 5.  CONFIDENTIALITY.  A treating physician or other
4-18     health care provider who provides or facilitates the use of
4-19     telemedicine shall ensure that the confidentiality of the patient's
4-20     medical information is maintained as required by Section 5.08,
4-21     Medical Practice Act (Article 4495b, Vernon's Texas Civil
4-22     Statutes), or other applicable law.
4-23           Sec. 6.  RULES.  (a)  Subject to Subsection (b) of this
4-24     section, the commissioner may adopt rules as necessary to implement
4-25     this article.
4-26           (b)  The Texas State Board of Medical Examiners, in
4-27     consultation with the commissioner, as appropriate, may adopt rules
 5-1     as necessary to:
 5-2                 (1)  ensure that appropriate care is provided to
 5-3     patients who receive services that are provided through
 5-4     telemedicine; and
 5-5                 (2)  prevent abuse and fraud through use of
 5-6     telemedicine services, including rules relating to filing of claims
 5-7     and records required to be maintained in connection with
 5-8     telemedicine.
 5-9           SECTION 2.  Subchapter C, Chapter 26, Insurance Code, is
5-10     amended by adding Article 26.21B to read as follows:
5-11           Art. 26.21B.  TELEMEDICINE.  A small employer health benefit
5-12     plan is subject to Article 21.53Z of this code.
5-13           SECTION 3.  This Act takes effect September 1, 1999, and
5-14     applies only to a health benefit plan that is delivered, issued for
5-15     delivery, or renewed on or after January 1, 2000.  A plan
5-16     delivered, issued for delivery, or renewed before January 1, 2000,
5-17     is governed by the law as it existed immediately before the
5-18     effective date of this Act, and that law is continued in effect for
5-19     that purpose.
5-20           SECTION 4.  The importance of this legislation and the
5-21     crowded condition of the calendars in both houses create an
5-22     emergency and an imperative public necessity that the
5-23     constitutional rule requiring bills to be read on three several
5-24     days in each house be suspended, and this rule is hereby suspended.