By Moncrief                                            S.B. No. 789
         77R7347 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the regulation and reimbursement of telemedicine
 1-3     medical services.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 531.0216, Government Code, is amended to
 1-6     read as follows:
 1-7           Sec. 531.0216.  PARTICIPATION AND REIMBURSEMENT OF
 1-8     TELEMEDICINE SERVICE PROVIDERS UNDER MEDICAID. (a)  The commission
 1-9     by rule shall develop and implement a system to reimburse providers
1-10     of services under the state Medicaid program for services performed
1-11     using telemedicine medical services.
1-12           (b)  In developing the system, the commission, by rule,
1-13     shall:
1-14                 (1)  review programs and pilot projects in other states
1-15     to determine the most effective method for reimbursement;
1-16                 (2)  establish billing codes and a fee schedule for
1-17     services; [and]
1-18                 (3)  provide for an approval process before a provider
1-19     can receive reimbursement for services; and
1-20                 (4)  consult with the Texas Department of Health, the
1-21     Medicaid clinical review committee, the telemedicine advisory
1-22     committee, and the physician payment advisory committee to
1-23     establish procedures to:
1-24                       (A)  deny reimbursement for a health care service
 2-1     that, based upon credible clinical evidence, is shown to be
 2-2     medically inappropriate for delivery using a telecommunications
 2-3     system; and
 2-4                       (B)  annually review health care services,
 2-5     considering new clinical findings, to determine whether
 2-6     reimbursement for particular services should be denied or
 2-7     authorized.
 2-8           (c)  The commission shall encourage teaching hospitals, small
 2-9     rural hospitals, federally qualified health centers, and
2-10     state-owned health care facilities to participate as telemedicine
2-11     medical services [service] providers in the health care delivery
2-12     system.  The commission may not require that a service be provided
2-13     to a patient through telemedicine medical services when the service
2-14     can reasonably be provided by a physician through a face-to-face
2-15     consultation with the patient in the community in which the patient
2-16     resides or works.  This subsection does not prohibit the
2-17     authorization of the provision of any service to a patient through
2-18     telemedicine medical services at the patient's request.
2-19           (d)  Not later than December 1 of each even-numbered year,
2-20     the commission shall report to the speaker of the house of
2-21     representatives and the lieutenant governor on the effects of
2-22     telemedicine medical services on the Medicaid program in the state,
2-23     including the number of physicians and health professionals using
2-24     telemedicine medical services, the geographic and demographic
2-25     disposition of the physicians and health professionals, the number
2-26     of patients receiving telemedicine medical services, the types of
2-27     services being provided, and the cost and utilization of
 3-1     telemedicine medical services on the program.
 3-2           (e) [(d)]  Subject to Section 153.004, Occupations Code
 3-3     [5.11, Medical Practice Act (Article 4495b, Vernon's Texas Civil
 3-4     Statutes)], the commission may adopt rules as necessary to
 3-5     implement this section.
 3-6           (f) [(e)]  In this section, "telemedicine medical service"
 3-7     has the meaning assigned by Section 57.042, Utilities Code.
 3-8           SECTION 2. Section 531.0217, Government Code, is amended to
 3-9     read as follows:
3-10           Sec. 531.0217.  REIMBURSEMENT FOR CERTAIN MEDICAL
3-11     CONSULTATIONS. (a)  In this section:
3-12                 (1)  "Health professional" means a physician or an
3-13     individual licensed or certified in this state to perform health
3-14     care services that are delegated and supervised by a physician [an
3-15     advanced nurse practitioner, an allied health professional, a
3-16     mental health professional, a physician, or a physician assistant
3-17     who is licensed in this state].
3-18                 (2)  "Physician" means a person licensed to practice
3-19     medicine in this state under Subtitle B, Title 3, Occupations Code
3-20     ["Rural county" means a county that:]
3-21                       [(A)  has a population of 50,000 or less; or]
3-22                       [(B)  contains an area that was not designated as
3-23     an urban area by the United States Bureau of the Census according
3-24     to the 1990 federal census and does not have within the boundaries
3-25     of the county a hospital that:]
3-26                             [(i)  is licensed under Chapter 241, Health
3-27     and Safety Code; and]
 4-1                             [(ii)  has more than 100 beds].
 4-2                 (3)  "Telemedicine medical service" has the meaning
 4-3     assigned by Section 57.042, Utilities Code ["Rural health facility"
 4-4     means a health facility that is located in a rural county and at
 4-5     least 30 miles from any accredited medical school or any teaching
 4-6     hospital affiliated with an accredited medical school and that is:]
 4-7                       [(A)  a licensed, nonprofit hospital;]
 4-8                       [(B)  a health clinic that is affiliated with:]
 4-9                             [(i)  an accredited medical school;]
4-10                             [(ii)  a teaching hospital that is
4-11     affiliated with an accredited medical school;]
4-12                             [(iii)  a hospital described by Paragraph
4-13     (C); or]
4-14                             [(iv)  a federally qualified health center,
4-15     as defined by 42 U.S.C. Section 1396d(l)(2)(B), as amended; or]
4-16                       [(C)  a hospital that:]
4-17                             [(i)  is licensed under Chapter 241, Health
4-18     and Safety Code;]
4-19                             [(ii)  is owned or operated by a
4-20     municipality, county, hospital district, or hospital authority; and]
4-21                             [(iii)  provides inpatient or outpatient
4-22     services.]
4-23                 [(4)  "Telemedical consultation" means a medical
4-24     consultation for purposes of patient diagnosis or treatment that
4-25     requires the use of advanced telecommunications technology,
4-26     including:]
4-27                       [(A)  compressed digital interactive video,
 5-1     audio, or data transmission;]
 5-2                       [(B)  clinical data transmission via computer
 5-3     imaging for teleradiology or telepathology; and]
 5-4                       [(C)  other technology that facilitates access in
 5-5     rural counties to health care services or medical specialty
 5-6     expertise].
 5-7           (b)  The commission by rule shall require each health and
 5-8     human services agency that administers a part of the Medicaid
 5-9     program to provide Medicaid reimbursement for a telemedicine
5-10     medical service initiated or [telemedical consultation] provided by
5-11     a physician [licensed in this state who practices in:]
5-12                 [(1)  a rural health facility;]
5-13                 [(2)  an accredited medical school; or]
5-14                 [(3)  a teaching hospital that is affiliated with an
5-15     accredited medical school].
5-16           (c)  The commission shall ensure that reimbursement is
5-17     provided only for a telemedicine medical service initiated or
5-18     [consultation] provided by a physician [described in Subsection (b)
5-19     to a health professional who practices in a rural county].
5-20           (d)  The commission shall require reimbursement for a
5-21     telemedicine medical service [telemedical consultation] at the same
5-22     rate as the Medicaid program reimburses for a comparable in-person
5-23     medical service [consultation].  A request for reimbursement may
5-24     not be denied solely because an in-person medical service
5-25     [consultation] between a physician or another health professional
5-26     who provides the telemedicine medical service and a patient did not
5-27     occur.
 6-1           (e)  A health care facility that receives reimbursement under
 6-2     this section for a telemedicine medical service [consultations]
 6-3     provided by a physician [physicians] who practices [practice] in
 6-4     that facility or [and] a health professional who participates in a
 6-5     telemedicine medical service [obtains consultations] under this
 6-6     section shall establish quality of care protocols and patient
 6-7     confidentiality guidelines to ensure that the telemedicine medical
 6-8     service meets [telemedical consultations meet] legal requirements
 6-9     and acceptable patient care standards.
6-10           (f)  The commission may not require a telemedicine medical
6-11     service [telemedical consultation] if an in-person consultation
6-12     with a physician is reasonably available where the patient resides
6-13     or works.  The commission shall make a good faith effort to
6-14     identify and coordinate with existing providers to preserve and
6-15     protect existing health care systems and medical relationships in
6-16     an area.
6-17           (g)  If a patient receiving a telemedicine medical service
6-18     has a primary care physician, the commission shall require that the
6-19     primary care physician be notified of the telemedicine medical
6-20     service for the purpose of sharing medical information.
6-21           (h)  The commission in consultation with the Texas State
6-22     Board of Medical Examiners shall monitor and regulate the use of
6-23     telemedicine medical services to ensure compliance with this
6-24     section.  In addition to any other method of enforcement, the
6-25     commission may use a corrective action plan to ensure compliance
6-26     with this section.
6-27           (i) [(g)]  The Texas State Board of Medical Examiners, in
 7-1     consultation with the commission, as appropriate, may adopt rules
 7-2     as necessary to:
 7-3                 (1)  ensure that appropriate care, including quality of
 7-4     care, is provided to patients who receive telemedicine medical
 7-5     services [that are provided through a telemedical consultation];
 7-6     [and]
 7-7                 (2)  prevent abuse and fraud through the use of
 7-8     telemedicine medical services [telemedical consultations],
 7-9     including rules relating to filing of claims and records required
7-10     to be maintained in connection with telemedicine;
7-11                 (3)  establish supervisory requirements for a service
7-12     delegated to and performed by an individual who is not a physician;
7-13     and
7-14                 (4)  require a face-to-face consultation with a
7-15     physician within a certain number of days following a telemedicine
7-16     medical service.
7-17           (j) [(h)]  The commissioner shall establish an advisory
7-18     committee to assist the commission in coordinating state
7-19     telemedicine efforts [developing policies for telemedical
7-20     consultations under this section].
7-21           (k)  This section does not affect any requirement relating
7-22     to:
7-23                 (1)  a rural health clinic; or
7-24                 (2)  physician delegation of the authority to carry out
7-25     or sign prescription drug orders to an advanced practice nurse or
7-26     physician assistant.
7-27           (l)  The commission shall create and maintain a telemedicine
 8-1     medical services registry that is available to licensing and
 8-2     regulatory agencies.
 8-3           SECTION 3. Section 1, Article 21.53F, Insurance Code, as
 8-4     added by Section 1, Chapter 880, Acts of the 75th Legislature,
 8-5     Regular Session, 1997,  is amended to read as follows:
 8-6           Sec. 1.  DEFINITIONS. In this article:
 8-7                 (1)  "Health benefit plan" means a plan described by
 8-8     Section 2 of this article.
 8-9                 (2)  "Health professional" means a physician or an
8-10     individual licensed or certified in this state to perform health
8-11     care services that are delegated and supervised by a physician.
8-12                 (3)  "Physician" means a person licensed to practice
8-13     medicine in this state under Subtitle B, Title 3, Occupations Code.
8-14                 (4)  "Telemedicine medical service" has the meaning
8-15     assigned by Section 57.042, Utilities Code ["Telemedicine" means
8-16     the use of interactive audio, video, or other electronic media to
8-17     deliver health care.  The term includes the use of electronic media
8-18     for diagnosis, consultation, treatment, transfer of medical data,
8-19     and medical education.  The term does not include services
8-20     performed using a telephone or facsimile machine].
8-21           SECTION 4. Section 3, Article 21.53F, Insurance Code, as
8-22     added by Section 1, Chapter 880, Acts of the 75th Legislature,
8-23     Regular Session, 1997, is amended to read as follows:
8-24           Sec. 3.  COVERAGE FOR TELEMEDICINE MEDICAL SERVICES. (a)  A
8-25     health benefit plan may not exclude a telemedicine medical service
8-26     from coverage under the plan solely because the service is
8-27     [provided through telemedicine and] not provided through a
 9-1     face-to-face consultation.
 9-2           (b)  Benefits [for a service provided through telemedicine]
 9-3     required under this article may be made subject to a deductible,
 9-4     copayment, or coinsurance requirement.  A deductible, copayment, or
 9-5     coinsurance applicable to a particular service provided through
 9-6     telemedicine medical services may not exceed the deductible,
 9-7     copayment, or coinsurance required by the health benefit plan for a
 9-8     comparable [the same] service provided through a face-to-face
 9-9     consultation.
9-10           SECTION 5. Section 4, Article 21.53F, Insurance Code, as
9-11     added by Section 1, Chapter 880, Acts of the 75th Legislature,
9-12     Regular Session, 1997, is amended to read as follows:
9-13           Sec. 4.  INFORMED CONSENT. A treating physician or [other]
9-14     health professional [care provider] who provides or facilitates the
9-15     use of telemedicine medical services shall ensure that the informed
9-16     consent of the patient, or another appropriate person with
9-17     authority to make health care treatment decisions for the patient,
9-18     is obtained before telemedicine medical services are provided
9-19     [through telemedicine].
9-20           SECTION 6. Section 5, Article 21.53F, Insurance Code, as
9-21     added by Section 1, Chapter 880, Acts of the 75th Legislature,
9-22     Regular Session, 1997, is amended to read as follows:
9-23           Sec. 5.  CONFIDENTIALITY. A treating physician or [other]
9-24     health professional [care provider] who provides or facilitates the
9-25     use of telemedicine medical services shall ensure that the
9-26     confidentiality of the patient's medical information is maintained
9-27     as required by Chapter 159, Occupations Code [Section 5.08, Medical
 10-1    Practice Act (Article 4495b, Vernon's Texas Civil Statutes)], or
 10-2    other applicable law.
 10-3          SECTION 7. Section 6(b), Article 21.53F, Insurance Code, as
 10-4    added by Section 1, Chapter 880, Acts of the 75th Legislature,
 10-5    Regular Session, 1997, is amended to read as follows:
 10-6          (b)  The Texas State Board of Medical Examiners, in
 10-7    consultation with the commissioner, as appropriate, may adopt rules
 10-8    as necessary to:
 10-9                (1)  ensure that appropriate care, including quality of
10-10    care, is provided to patients who receive telemedicine medical
10-11    services [that are provided through telemedicine]; and
10-12                (2)  prevent abuse and fraud through use of
10-13    telemedicine medical services, including rules relating to filing
10-14    of claims and records required to be maintained in connection with
10-15    telemedicine medical services.
10-16          SECTION 8. Section 153.004, Occupations Code, is amended to
10-17    read as follows:
10-18          Sec. 153.004.  RULES REGARDING TELEMEDICINE SERVICES. (a)  In
10-19    consultation with the Health and Human Services Commission and the
10-20    commissioner of insurance, the board may adopt rules as necessary
10-21    to:
10-22                (1)  ensure that appropriate care is provided to
10-23    Medicaid and Medicare patients who receive telemedicine medical
10-24    services [that are provided through telemedicine]; and
10-25                (2)  prevent abuse and fraud in the use of telemedicine
10-26    medical services for Medicaid and Medicare patients.
10-27          (b)  The rules adopted under Section (a)(2) may include rules
 11-1    relating to filing of claims and records required to be maintained
 11-2    in relation to telemedicine medical services.
 11-3          SECTION 9. Section 57.042(11), Utilities Code, is amended to
 11-4    read as follows:
 11-5                (11)  "Telemedicine medical service" means a health
 11-6    care service initiated by a physician or provided by a health
 11-7    professional acting under physician delegation and supervision for
 11-8    purposes of patient assessment by a health professional, diagnosis
 11-9    or consultation by a physician, treatment, or the transfer of
11-10    medical data, that requires the use of advanced telecommunications
11-11    technology, other than by telephone or facsimile, including:
11-12                      (A)  compressed digital interactive video, audio,
11-13    or data transmission;
11-14                      (B)  clinical data transmission using computer
11-15    imaging by way of still-image capture and store and forward; and
11-16                      (C)  other technology that facilitates access to
11-17    health care services or medical specialty expertise[:]
11-18                      [(A)  means medical services delivered by
11-19    telecommunications technologies to rural or underserved public
11-20    not-for-profit health care facilities or primary health care
11-21    facilities in collaboration with an academic health center and an
11-22    associated teaching hospital or tertiary center or with another
11-23    public not-for-profit health care facility; and]
11-24                      [(B)  includes consultive services, diagnostic
11-25    services, interactive video consultation, teleradiology,
11-26    telepathology, and distance education for working health care
11-27    professionals].
 12-1          SECTION 10. Section 57.045, Utilities Code, is amended by
 12-2    adding Subsection (e) to read as follows:
 12-3          (e)  The board shall establish an assistance program to
 12-4    provide education concerning the telecommunications infrastructure
 12-5    fund and to facilitate access to funds and programs under this
 12-6    subchapter by health care facilities and by physicians licensed to
 12-7    practice medicine in this state.  The assistance program must
 12-8    include a toll-free telephone number and provide access to
 12-9    information through the Internet.
12-10          SECTION 11. Sections 57.047(a) and (b), Utilities Code, are
12-11    amended to read as follows:
12-12          (a)  The board may award a grant to a project or proposal
12-13    that:
12-14                (1)  provides equipment and infrastructure necessary
12-15    for:
12-16                      (A)  distance learning;
12-17                      (B)  an information sharing program of a library;
12-18    or
12-19                      (C)  telemedicine medical services;
12-20                (2)  develops and implements the initial or
12-21    prototypical delivery of a course or other distance learning
12-22    material;
12-23                (3)  trains teachers, faculty, librarians, or
12-24    technicians in the use of distance learning or information sharing
12-25    materials and equipment;
12-26                (4)  develops a curriculum or instructional material
12-27    specially suited for telecommunications delivery;
 13-1                (5)  provides electronic information; or
 13-2                (6)  establishes or carries out an information sharing
 13-3    program.
 13-4          (b)  The board may award a loan to a project or proposal to
 13-5    acquire equipment needed for distance learning and telemedicine
 13-6    medical service projects.
 13-7          SECTION 12. Not later than January 1, 2002, the Health and
 13-8    Human Services Commission shall adopt rules required by Section
 13-9    531.0217, Government Code, as amended by this Act.
13-10          SECTION 13. If before implementing any provision of this Act
13-11    a state agency  determines that a waiver or authorization from a
13-12    federal agency is necessary for implementation of that provision,
13-13    the agency affected by the provision shall request the waiver or
13-14    authorization and may delay implementing that provision until the
13-15    waiver or authorization is granted.
13-16          SECTION 14.  This Act takes effect immediately if it receives
13-17    a vote of two-thirds of all the members elected to each house, as
13-18    provided by Section 39, Article III, Texas Constitution.  If this
13-19    Act does not receive the vote necessary for immediate effect, this
13-20    Act takes effect September 1, 2001.