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.
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MEMBERS PRESENT: MEMBERS ABSENT:
Senator Jane Nelson Senator John Carona
Senator Mario Gallegos, Jr. Senator Troy Fraser
Senator Judith Zaffirini
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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