SRC-CTC S.B. 1536 77(R)BILL ANALYSIS Senate Research CenterS.B. 1536 By: Madla Health & Human Services 6/11/2001 Enrolled DIGEST AND PURPOSE The application of new technology to medical services can take time. Pilot projects allow for the examination of how new technology can be utilized for the benefit of various medical and financial assistance programs. S.B. 1536 authorizes the establishment of pilot projects to demonstrate the applications of technology in providing rehabilitation services, services for the aging or disabled, or long-term care services, including community care services and support. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Health and Human Services Commission in SECTION 2 (Section 531.02161, Government Code) of this bill. Rulemaking authority is expressly granted to the Texas Department of Health in SECTION 4 (Section 35.0041, Health and Safety Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 531B, Government Code, by adding Section 531.055, as follows: Sec. 531.055. PILOT PROJECTS RELATING TO TECHNOLOGY APPLICATIONS. (a) Authorizes the Health and Human Services Commission (commission), notwithstanding any other law, to establish one or more pilot projects through which reimbursement under the medical assistance program under Chapter 32 (Medical Assistance Program), Human Resources Code, is made to demonstrate the applications of technology in providing services under that program. (b) Authorizes a pilot project established under this section to relate to providing rehabilitation services, services for the aging or disabled, or long-term care services, including community care services and support. (c) Authorizes the commission, notwithstanding an eligibility requirement prescribed by any other law or rule, to establish requirements for a person to receive services provided through a pilot project under this section. (d) Provides that receipt of services provided through a pilot project under this section does not entitle the recipient to other services under a government-funded health program. (e) Authorizes the commission to set a maximum enrollment limit for a pilot project established under this section. SECTION 2. Amends Chapter 531B, Government Code, by adding Section 531.02161, as follows: Sec. 531.02161. MEDICAID SERVICES PROVIDED THROUGH TELEMEDICINE MEDICAL SERVICES AND TELEHEALTH SERVICES TO CHILDREN WITH SPECIAL HEALTH CARE NEEDS. Defines "child with special health care needs." Requires the commission by rule to establish policies that permit reimbursement under the state Medicaid and children's health insurance program for services provided through telemedicine medical services and telehealth services to children with special health care needs. Sets forth certain requirements for the policies required under this section. SECTION 3. Amends Chapter 531B, Government Code, by adding Sections 531.02171 and 531.02172, as follows: Sec. 531.02171. TELEMEDICINE MEDICAL SERVICES AND TELEHEALTH SERVICES PILOT PROGRAMS. Defines "health professional," "physician," "telehealth service," and "telemedicine medical service." Requires the commission to establish certain pilot programs in designated areas of this state and sets forth certain requirements of the pilot projects. Sets forth certain requirements of the commission in developing and operating a pilot program under this section. Sec. 531.02172. TELEMEDICINE ADVISORY COMMITTEE. Requires the commissioner to establish an advisory committee to assist the commission with certain items. Sets forth certain membership requirements of the advisory committee. Provides that a member of the advisory committee serves at the will of the commissioner. SECTION 4. Amends Chapter 35, Health and Safety Code, by adding Section 35.0041, as follows: Sec. 35.0041. PARTICIPATION AND REIMBURSEMENT OF TELEMEDICINE MEDICAL SERVICE PROVIDERS. Requires the Texas Department of Health (department) by rule to develop and implement policies permitting reimbursement of a provider for services under the program performed using telemedicine medical services. Sets forth certain requirements of the policies. Requires the department to consult with certain entities and individuals in developing and implementing the policies required by this section. SECTION 5. Amends Chapter 62D, Health and Safety Code, by adding Section 62.157, as follows: Sec. 62.157. TELEMEDICINE MEDICAL SERVICES AND TELEHEALTH SERVICES FOR CHILDREN WITH SPECIAL HEALTH CARE NEEDS. Requires a health plan provider, in providing covered benefits to a child with special health care needs, to permit benefits to be provided through telemedicine medical services and teleheatlh services in accordance with policies developed by the commission. Sets forth requirements of the policies. Requires the commission, in developing the policies required by this section, to consult with certain entities and individuals. SECTION 6. Amends Section 57.042, Utilities Code, to define "telehealth service" and "telemedicine medical service." Deletes existing definition of "telemedicine." SECTION 7. Amends Sections 57.047(a) and (b), Utilities Code, to make conforming changes. SECTION 8. Amends Section 57C, Utilities Code, by adding Section 57.0471, as follows: Sec. 57.0471. GRANTS TO CERTAIN HEALTH CARE FACILITIES. Provides that a physician, health care professional, or health care facility providing telemedicine medical services or telehealth services and participating in a pilot program under Section 531.02717, Government Code, is eligible to receive a grant under Section 57.047. Provides that the physician, health care professional, or health care facility providing telemedicine medical services or telehealth services and participating in a pilot program under Section 531.02171, Government Code, is not eligible to receive private network services under Section 58.253(a), except with respect to a project that would have been eligible to be funded by the telecommunications infrastructure fund under this subchapter as it existed on January 1, 2000. SECTION 9. Amends Section 58.253(a), Utilities Code, to make a conforming change. SECTION 10. Repealer: Section 531.0217(h), Government Code. SECTION 11. Requires the commissioner of health and human services, not later than December 31, 2001, to establish the telemedicine advisory committee (committee) as required by Section 531.02712, Government Code, as added by this Act. Requires the committee, not later than September 1, 2003, to prepare a report relating to the implementation of the pilotprograms established under Section 531.02171, Government Code, as added by this Act, and to provide the report to certain state officials. SECTION 12. Provides that the advisory committee established under Section 531.0217(h), Government Code, is abolished on the effective date of this Act. SECTION 13. Requires the commission and the department to develop and implement policies required by Sections 35.0041 and 62.157, Health and Safety Code, as added by this Act, not later than December 31, 2001. SECTION 14. Requires the commission, not later than December 1 of each even-numbered year, to report to certain state officials on the effects of telemedicine medical services on the Medicaid and children's health insurance programs in the state, including the number of physicians and health professionals using telemedicine medical services, the geographic and demographic dispositions of the physicians and health professionals, the number of patients receiving telemedicine medical services, the types of services being provided, and the cost of utilization of telemedicine medical services to the program. SECTION 15. Requires a state agency, if before implanting any provision of this Act, the affected agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, to request the waiver or authorization. Authorizes the agency to delay implementing that provision until the waiver or authorization is granted. SECTION 16. Effective date: upon passage or September 1, 2001.