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