MINUTES SENATE COMMITTEE ON FINANCE Subcommittee on Rising Medical Costs Thursday, September 5, 2002 8:30 a.m. Capital Extension, E1.036 Austin, Texas ***** Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Committee on Finance was held on Thursday, September 5, 2002, in E1.036 at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Robert Duncan, Chair Senator Judith Zaffirini Senator Gonzalo Barrientos Senator Troy Fraser Senator Steve Ogden Senator Todd Staples Senator Carlos Truan ***** Senator Robert Duncan, the acting chair, called the meeting to order at 8:33 p.m. Senator Averitt was also present for a portion of the hearing. The following business was transacted: The following invited witnesses answered questions and provided oral testimony: Charles Dunlap and Ronnie Jung, both representing the Teacher Retirement System, answered questions and briefed the committee on the agency's LAR funding requests for 2004/2005. Dr. Ben Raimer, Allen Hightower and Allen Sapp, all representing Correctional Managed Health Care Committee, answered questions from the committee and gave a presentation entitled, Health Care Cost Drivers. Commissioner Jose Montemayor, representing the Commission of Insurance, answered questions and gave two briefings regarding medical malpractice, and the state of the HMO industry. Joe Cunningham, Karol Shepard and Teresa Waters, all representing the Texas Medical Association, gave a brief presentation and answered questions from the committee. John Simms, representing Trinity Medical Center, gave a presentation entitled, The Rural Perspective. Sally Jeffcoat, representing Texas Hospital Association, briefed the committee on cost and revenue drivers of healthcare. Darren Whitehurst, representing Texas Hospital Association, answered several questions from the committee. Dr. Eugene Kolassa, an Associate Professor at the University of Mississippi, Merrill Matthews Jr. Ph.D., Visiting Scholar at the Institute for Policy Innovation, and Thomas Hardaway, were asked by PhRMA to provide oral testimony. The panel gave brief presentations and answered questions from the committee. Todd Kaufman, Director of State Government Relations, representing Genentech expressed how the state's fiscal problem effects patients and their healthcare. Will Sanders, Vice-President of Account Management, Mark A. Tripodi, both representing Heritage Information Systems, gave an overview and answered questions from the committee. Commissioner Don Gilbert, representing Health and Human Services Commission, answered several questions from the committee. Bill Hammond, Executive Director, and Lara Laneri Keel, both representing Texas Association of Business answered questions from the committee. Tom Blaise, representing Town and Country Food Stores, present on behalf of Texas Association of Business, answered questions concerning large businesses. Tom Fitzsimmons, President of SEI Metal forms, also present on behalf of Texas Association of Business, answered questions concerning small businesses. Dr. Gary Goldstein, CEO of Humana, representing Texas Association of Health Plans, gave a presentation on the state of health care coverage in Texas. The following witnesses gave public testimony: Andrew M. Homer, representing the Texas Public Employees Association. Gary Anderson, representing Texas Public Employees Association. Louis Siedlecki, representing Pervasive Disability. There being no further business, at 5:15 p.m. Senator Duncan moved that the Committee stand recessed subject to the call of the chair. Without objection, it was so ordered. ______________________ Senator Robert Duncan, Chair ______________________ Amber Martin, Clerk