LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 5, 2001
  
  
          TO:  Honorable John T. Smithee, Chair, House Committee on
               Insurance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1394  by Fraser (Relating to the operation of a
               statewide rural health care system.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would modify the statewide rural health care system (RHCS) as
established by the 75th Legislature to allow the RHCS to sponsor,
arrange, or provide health care services to eligible rural residents.
SECTION 3 of the bill would exempt the RHCS from provisions of the
Children's Health Insurance Program, the Medicaid Program, and other
public programs that require the coverage of services by a particular
health care provider.  SECTION 4 of the bill would allow the
commissioner of insurance to exempt the RHCS from applicable managed
care regulations relating to mileage, distance, network adequacy, scope
of coverage, and other subjects.  Other sections of the bill make
conforming changes.  The bill would take effect September 1, 2001.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   529   Health and Human Services Commission, 50A
                   Center for Rural Health Initiatives
LBB Staff:         JK, JO, HD, SW