MINUTES 
                                           
            SENATE COMMITTEE ON PROMPT PAYMENT OF HEALTH CARE PROVIDERS 
                            Wednesday, November 7, 2001 
                                     9:30 a.m. 
                                   Senate Chamber 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Prompt  
         Payment of Health Care Providers was held on Wednesday,  
         November 7, 2001, in the Senate Chamber at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Jane Nelson                     Senator John Carona 
         Senator Troy Fraser                     Senator Mario Gallegos,  
                                                 Jr. 
         Senator Judith Zaffirini 
                                           
                                       ***** 
                                           
         The Chair called the meeting to order at 9:30 a.m. and the  
         following business was transacted. 
          
         The Chair made opening remarks and announced that the purpose of  
         the meeting was to consider the organization and rules for the  
         Senate Special Committee on Prompt Payment of Health Care  
         Providers and to receive briefings regarding the interim charge  
         issued by Lieutenant Governor Bill Ratliff. 
          
         The Chair introduced the Committee staff, namely Steve Roddy,  
         Committee Director, and Cheri Huddleston, Committee Clerk.  The  
         Chair also introduced the Lieutenant Governor and Governor  
         Perry, and invited Committee members to introduce their staff. 
          
         Senator Zaffirini introduced her staff and gave opening remarks. 
          
         The Chair called invited panelists from the Texas Department of  
         Insurance to give an overview of state law, agency rules, and  
         agency activities and programs related to prompt payment of  
         health care claims. 
          
         At 9:42 a.m., a quorum was established. 
          
         The Chair laid out the interim rules for the Committee and  
         called for comments.  There being none, Senator Zaffirini moved  
         that the Committee rules be adopted.  Without objection, the  
         rules were adopted by unanimous consent. 
          
         The following persons provided oral testimony and responded to  
  
         questions by members of the Committee: 
          
              Jose Montemayor, Commissioner, representing the Texas  
              Department of Insurance. 
          
              Kim Stokes, Senior Associate Commissioner for Life, Health,  
              & Licensing, representing the Texas Department of  
              Insurance. 
          
              Audrey Selden, Senior Associate Commissioner for Consumer  
              Protection, representing the Texas Department of Insurance. 
          
         There being no further questions for these witnesses, the Chair  
         called invited panelists from the Office of the Attorney General  
         to brief the Committee members on the investigation of HMO  
         payment practices and ERISA. 
          
         The following persons provided oral testimony and responded to  
         questions by members of the Committee: 
          
              David Mattax, Division Chief, Financial Litigation,  
              representing the Office of the Attorney General. 
          
              Edna Ramon Butts, Special Assistant Attorney General,  
              representing the Office of the Attorney General. 
          
         There being no further questions for these witnesses, the Chair  
         called the invited witness from the Health and Human Services  
         Commission to present an overview of prompt payment issues in  
         relation to the state Medicaid program. 
          
         The following person provided oral testimony and responded to  
         questions by members of the Committee: 
          
              Don Gilbert, Commissioner, representing the Health and  
         Human Services Commission. 
          
         There being no further questions for this witness, the Chair  
         discussed the Committee schedule, stating that a date for the  
         next hearing had not been determined and that the Committee  
         staff will coordinate with each office to discuss the location  
         and time for the next hearing. 
          
         There being no further business, at 12:05 p.m., the Chair  
         announced that the Committee would stand recessed, subject to  
         the call of the Chair. 
          
         ______________________ 
         Senator Jane Nelson, Chair 
          
         ______________________ 
         Cheri Huddleston, Clerk