By Ellis                                              S.B. No. 1041
         77R5086 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to services provided through telemedicine  for children
 1-3     with special health care needs.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 35, Health and Safety Code, is amended by
 1-6     adding Section 35.0041 to read as follows:
 1-7           Sec. 35.0041.  PARTICIPATION AND REIMBURSEMENT OF
 1-8     TELEMEDICINE SERVICE PROVIDERS.  (a)  In this section,
 1-9     "telemedicine" means the use of interactive audio, video, or other
1-10     electronic media to deliver health care services.  The term
1-11     includes the use of electronic media for diagnosis, consultation,
1-12     treatment, and transfer of medical data.  The term does not include
1-13     services performed by using a telephone or facsimile machine.
1-14           (b)  The department by rule shall develop and implement
1-15     policies permitting reimbursement of a provider for services under
1-16     the program performed using telemedicine.
1-17           (c)  The policies must provide for reimbursement of:
1-18                 (1)  providers using telemedicine in a cost-effective
1-19     manner that ensures the availability to a child with special health
1-20     care needs of services appropriately performed using telemedicine
1-21     that are comparable to the same types of services available to that
1-22     child without use of telemedicine;
1-23                 (2)  a provider for a service performed using
1-24     telemedicine at an amount equal to the amount paid to a provider
 2-1     for performing the same service without using telemedicine; and
 2-2                 (3)  multiple providers of different services who
 2-3     participate in a single telemedicine session for a child with
 2-4     special health care needs, if the department determines that
 2-5     reimbursing each provider for the session is cost-effective in
 2-6     comparison to the costs that would be involved in obtaining the
 2-7     services from providers without use of telemedicine, including the
 2-8     costs of transportation and lodging and other direct costs.
 2-9           (d)  In developing and implementing the policies required by
2-10     this section, the department shall consult with:
2-11                 (1)  The University of Texas Medical Branch at
2-12     Galveston;
2-13                 (2)  the Health and Human Services Commission,
2-14     including the state  Medicaid office;
2-15                 (3)  providers of telemedicine hub sites in this state;
2-16     and
2-17                 (4)  providers of services to children with special
2-18     health care needs.
2-19           (e)  This section applies to services for which coverage is
2-20     provided under the health benefits plan established under Section
2-21     35.0031.
2-22           SECTION 2. Subchapter D, Chapter 62, Health and Safety Code,
2-23     is amended by adding Section 62.157 to read as follows:
2-24           Sec. 62.157.  TELEMEDICINE FOR CHILDREN WITH SPECIAL HEALTH
2-25     CARE NEEDS. (a)  In providing covered benefits to a child with
2-26     special health care needs, a health plan provider must permit
2-27     benefits to be provided through telemedicine in accordance with
 3-1     policies developed by the commission.
 3-2           (b)  The policies must provide for:
 3-3                 (1)  the availability of covered benefits appropriately
 3-4     provided through telemedicine that are comparable to the same types
 3-5     of covered benefits provided without the use of telemedicine; and
 3-6                 (2)  the availability of covered benefits for different
 3-7     services performed by multiple health care providers during a
 3-8     single telemedicine session, if the commission determines that
 3-9     delivery of the covered benefits in that manner is cost-effective
3-10     in comparison to the costs that would be involved in obtaining the
3-11     services from providers without the use of telemedicine, including
3-12     the costs of transportation and lodging and other direct costs.
3-13           (c)  In developing the policies required by Subsection (a),
3-14     the commission shall consult with:
3-15                 (1)  The University of Texas Medical Branch at
3-16     Galveston;
3-17                 (2)  the Texas Department of Health;
3-18                 (3)  providers of telemedicine hub sites in this state;
3-19     and
3-20                 (4)  providers of services to children with special
3-21     health care needs.
3-22           (d)  In this section, "telemedicine" has the meaning assigned
3-23     by Section 35.0041.
3-24           SECTION 3.  Subchapter B, Chapter 531, Government Code, is
3-25     amended by adding Section 531.02161 to read as follows:
3-26           Sec. 531.02161.  MEDICAID SERVICES PROVIDED THROUGH
3-27     TELEMEDICINE TO CHILDREN WITH SPECIAL HEALTH CARE NEEDS.  (a)  In
 4-1     this section:
 4-2                 (1)  "Child with special health care needs" has the
 4-3     meaning assigned by Section 35.0022, Health and Safety Code.
 4-4                 (2)  "Telemedicine" has the meaning assigned by Section
 4-5     35.0041, Health and Safety Code.
 4-6           (b)  The commission by rule shall establish policies that
 4-7     permit reimbursement under the state Medicaid program for services
 4-8     provided through telemedicine to children with special health care
 4-9     needs.
4-10           (c)  The policies required under this section must:
4-11                 (1)  be designed to:
4-12                       (A)  prevent unnecessary travel and encourage
4-13     efficient use of telemedicine for children with special health care
4-14     needs in all suitable circumstances; and
4-15                       (B)  ensure in a cost-effective manner the
4-16     availability to a child with special health care needs of services
4-17     appropriately performed using telemedicine that are comparable to
4-18     the same types of services available to that child without use of
4-19     telemedicine; and
4-20                 (2)  provide for reimbursement of multiple providers of
4-21     different services who participate in a single telemedicine session
4-22     for a child with special health care needs, if the commission
4-23     determines that reimbursing each provider for the session is
4-24     cost-effective in comparison to the costs that would be involved in
4-25     obtaining the services from providers without use of telemedicine,
4-26     including the costs of transportation and lodging and other direct
4-27     costs.
 5-1           SECTION 4.  The Health and Human Services Commission and the
 5-2     Texas Department of Health shall develop and implement policies
 5-3     required by this Act not later than December 31, 2001.
 5-4           SECTION 5. If before implementing any provision of this Act a
 5-5     state agency determines that a waiver or authorization from a
 5-6     federal agency is necessary for implementation of that provision,
 5-7     the agency affected by the provision shall request the waiver or
 5-8     authorization and may delay implementing that provision until the
 5-9     waiver or authorization is granted.
5-10           SECTION 6. This Act takes effect September 1, 2001.