MINUTES 
                                           
            SENATE COMMITTEE ON PROMPT PAYMENT OF HEALTH CARE PROVIDERS 
                               Tuesday, April 2, 2002 
                                     9:30 a.m. 
           University of North Texas Health Science Center in Fort Worth 
                                           
                                       ***** 
                                           
         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 Tuesday, April 2,  
         2002, at the University of North Texas Health Science Center in  
         Fort Worth, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Jane Nelson                     Senator John Carona 
         Senator Mario Gallegos, Jr.             Senator Troy Fraser 
                                                 Senator Judith Zaffirini 
                                           
                                       ***** 
                                           
         The Chair called the meeting to order at 9:35 a.m.  The  
         following business was transacted. 
          
         Senator Mario Gallegos arrived after the meeting was called to  
         order. 
          
         The Chair made opening remarks thanking the University of North  
         Texas Health Science Center for hosting the hearing and  
         announced that the purpose of this hearing was to solicit and  
         consider public testimony on the interim charges assigned to the  
         committee by Lieutenant Governor Bill Ratliff:  (1) to evaluate  
         the effectiveness of existing state law and agency rules  
         designed to ensure prompt payment of health insurance claims to  
         providers by insurance companies; (2) to assess the level of  
         industry compliance with current law and the necessity of  
         additional enforcement measures; and (3) to determine the  
         factors affecting the timeliness of reimbursements and make  
         necessary recommendations to improve the process. 
          
         The Chair recognized Dr. Benjamin Cohen, D.O., Provost and  
         Senior Vice President for Health Affairs, University of North  
         Texas Health Science Center who gave welcoming remarks to the  
         Committee. 
          
         The Chair welcomed Senators Mike Moncrief and Craig Estes and  
         Representatives Charlie Geren, Glenn Lewis, Vicki Truitt, and  
         Bill Carter to the hearing. 
          
         The Chair invited Jose Montemayor, Commissioner of the Texas  
  
         Department of Insurance, to explain to the Committee the prompt  
         payment enforcement structure from the department's perspective,  
         to update the Committee on the status of the penalties and  
         restitution process, and to share his thoughts regarding the  
         continued rise in medical malpractice rates in Texas. 
          
         Commissioner Montemayor provided written and oral testimony and  
         responded to questions by members of the Committee. 
          
         There being no further questions for this witness, the Chair  
         invited Bohn Allen, M.D., Tarrant County Medical Society; Jay  
         Dhingra, Vice President, HCA-The Health Care Company; Janice  
         Fagen, Vice President, UNICARE Life & Health Insurance Company;  
         William Taylor, M.D., M.Ph., Aetna; and Dennis Austin, Business  
         Executive, Raytheon Company, to discuss matters relating to the  
         prompt payment enforcement structure, including factors that  
         lead to penalties, the effectiveness and appropriateness of the  
         enforcement structure, and ideas for improvements. 
          
         The invited witnesses provided written and oral testimony and  
         responded to questions by members of the Committee. 
          
         There being no further questions for these witnesses, the Chair  
         opened the hearing to public testimony. 
          
         Witnesses testifying and registering on the charge are shown on  
         the attached list. 
          
         There being no further business, at 5:08 p.m. Senator Nelson  
         moved that the Committee stand recessed subject to the call of  
         the Chair.  Without objection, it was so ordered.   
          
         ______________________ 
         Senator Jane Nelson, Chair 
          
         ______________________ 
         Cheri Huddleston, Clerk