Amend SB 1536 on third reading by adding the following
appropriately numbered SECTIONS and renumbering subsequent SECTIONS
of the bill accordingly:
      SECTION __. Chapter 35, Health and Safety Code, is amended by
adding Section 35.0041 to read as follows:
      Sec. 35.0041.  PARTICIPATION AND REIMBURSEMENT OF
TELEMEDICINE SERVICE PROVIDERS.  (a)  The department by rule shall
develop and implement policies permitting reimbursement of a
provider for services under the program performed using
telemedicine services and telehealth services.
      (b)  The policies must provide for reimbursement of:
            (1)  providers using telemedicine services and
telehealth services in a cost-effective manner that ensures the
availability to a child with special health care needs of services
appropriately performed using telemedicine services and telehealth
services that are comparable to the same types of services
available to that child without use of telemedicine services and
telehealth services;
            (2)  a provider for a service performed using
telemedicine services and telehealth services at an amount equal to
the amount paid to a provider for performing the same service
without using telemedicine services and telehealth services; and
            (3)  multiple providers of different services who
participate in a single telemedicine services or telehealth
services session for a child with special health care needs, if the
department determines that reimbursing each provider for the
session is cost-effective in comparison to the costs that would be
involved in obtaining the services from providers without the use
of telemedicine services and telehealth services, including the
costs of transportation and lodging and other direct costs.
      (4)  Providers using telemedicine services and telehealth
services included in the school health and related services
program.
      (c)  In developing and implementing the policies required by
this section, the department shall consult with:
            (1)  The University of Texas Medical Branch at
Galveston;
            (2)  Texas Tech University Health Services Center;
            (3)  the Health and Human Services Commission,
including the state  Medicaid office;
            (4)  providers of telemedicine services and telehealth
services hub sites in this state; and
            (5)  providers of services to children with special
health care needs.
            (6)  representatives of consumer or disability groups
      affected by changes to services for children with special
health care needs.
      (d)  This section applies to services for which coverage is
provided under the health benefits plan established under Section
35.0031.
      SECTION __. Subchapter D, Chapter 62, Health and Safety Code,
is amended by adding Section 62.157 to read as follows:
      Sec. 62.157.  TELEMEDICINE FOR CHILDREN WITH SPECIAL HEALTH
CARE NEEDS. (a)  In providing covered benefits to a child with
special health care needs, a health plan provider must permit
benefits to be provided through telemedicine services and
telehealth services in accordance with policies developed by the
commission.
      (b)  The policies must provide for:
            (1)  the availability of covered benefits appropriately
provided through telemedicine services and telehealth services that
are comparable to the same types of covered benefits provided
without the use of telemedicine services and telehealth services;
and
            (2)  the availability of covered benefits for different
services performed by multiple health care providers during a
single telemedicine services and telehealth services session, if
the commission determines that delivery of the covered benefits in
that manner is cost-effective in comparison to the costs that would
be involved in obtaining the services from providers without the
use of telemedicine services and telehealth services, including the
costs of transportation and lodging and other direct costs.
      (c)  In developing the policies required by Subsection (a),
the commission shall consult with:
            (1)  The University of Texas Medical Branch at
Galveston;
      (2)  Texas Tech University Health Sciences Center;
            (3)  the Texas Department of Health;
            (4)  providers of telemedicine services and telehealth
services hub sites in this state; and
            (5)  providers of services to children with special
health care needs.
            (6)  representatives of consumer or disability groups
      affected by changes to services for children with special
health care needs.
      SECTION __.  Subchapter B, Chapter 531, Government Code, is
amended by adding Section 531.02161 to read as follows:
      Sec. 531.02161.  MEDICAID SERVICES PROVIDED THROUGH
TELEMEDICINE TO CHILDREN WITH SPECIAL HEALTH CARE NEEDS.  (a)  In
this section, "Child with special health care needs"
      meaning assigned by Section 35.0022, Health and Safety Code.
      (b)  The commission by rule shall establish policies that
permit reimbursement under the state Medicaid and Children's Health
Insurance program for services provided through telemedicine
services and telehealth services to children with special health
care needs.
      (c)  The policies required under this section must:
            (1)  be designed to:
                  (A)  prevent unnecessary travel and encourage
efficient use of telemedicine services and telehealth services for
children with special health care needs in all suitable
circumstances; and
                  (B)  ensure in a cost-effective manner the
availability to a child with special health care needs of services
appropriately performed using telemedicine services and telehealth
services that are comparable to the same types of services
available to that child without use of telemedicine services and
telehealth services; and
            (2)  provide for reimbursement of multiple providers of
different services who participate in a single telemedicine
services and telehealth services session for a child with special
health care needs, if the commission determines that reimbursing
each provider for the session is cost-effective in comparison to
the costs that would be involved in obtaining the services from
providers without the use of telemedicine services and telehealth
services, including the costs of transportation and lodging and
other direct costs.
      SECTION 3.  The Health and Human Services Commission and the
Texas Department of Health shall develop and implement policies
required by not later than December 31, 2001.
      SECTION __.  Not later than December 1 of each even-numbered
year, the commission shall report to the Speaker of the House of
Representatives, the Lieutenant Governor, and the Governor on the
effects of telemedicine services on the Medicaid ad Childrens
Health Insurance programs in the state, including telemedicine
servicesm the geographic and demographic dispositions of the
physicians and health professionals, the number of patients
receiving telemedicine services, the types of services being
provided, and the cost of utilization of telemedicine services to
the program.
      Section __. Section 58.253(a), Utilities Code, is amended to
read as follows:  (a)  On customer request, an electing company
shall provide pricates network services to:  (1)  an educational
institutionl (2)  a library; (3)  a nonprofit telemedicine center;
(4)  a public not-for-profit hospital; (5)  a project that would
have been eligible to be funded by the telecommunications
infrastructure fund under Subchapter C, Chapter 57, as that
subchapter existed on January 1, 2001; or (6) a legally constituted
consortium or groupof entities listed in this subsection,