SRC-VRA H.B. 1735 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 1735
By: Delisi (Janek)
Health & Human Services
5/5/2003
Engrossed


DIGEST AND PURPOSE 

H.B. 1735 requires the Health and Human Services Commission (HHSC), the
Teacher Retirement System, the Employees Retirement System, the Texas
Criminal Justice System, and The University of Texas and Texas A&M health
systems to ensure that the managed care plans that are offered include
disease management programs for people with chronic illness such as heart
disease, respiratory illness, diabetes, asthma, HIV or AIDS.
Additionally, both HHSC and the institutions are to study the outcomes and
utilization rates as a result of implementation of disease management
programs. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter D, Chapter 62, Health and Safety Code, by
adding Section 62.159 , as follows: 
 
Sec. 62.159.  DISEASE MANAGEMENT SERVICES.  (a)  Defines "disease
management services." 
 
(b)  Requires the child health plan to provide disease management services
or coverage for disease management services in the manner required by the
Health and Human Services Commission (HHSC), including certain services. 
  
(c)  Requires HHSC to conduct a study that evaluates the savings to the
state as a result of implementation of the comprehensive disease
management programs described by Subsections (a) and (b).  Requires HHSC
to evaluate the clinical outcomes of children enrolled in a disease
management program.  Requires HHSC to report the progress of the study to
the governor, lieutenant governor, and speaker of the house of
representatives not later than December 1, 2004, and the final results of
the study not later than December 1, 2005. 
 
(d)  Authorizes HHSC to conduct the study under Subsection (c) in
conjunction with an academic center. 
 
(e)  Provides that Subsections (c) and (d) and this subsection expire
January 1, 2006. 
 
SECTION 2.  Amends Subchapter E, Chapter 3, Insurance Code, by adding
Article 3.50-7B, as follows: 
 
Art. 3.50-7B.  DISEASE MANAGEMENT SERVICES.  (a)  Defines "disease
management services." 
 
(b)  Requires a health coverage plan provided under Article 3.50-7 of this
code to provide disease management services or coverage for disease
management  services in the manner required by the Teacher Retirement
System of Texas, including certain services. 
  
(c)  Requires the Teacher Retirement System of Texas to conduct a study
that evaluates the savings to the state as a result of implementation of
the comprehensive disease management programs described by Subsections (a)
and (b).  Requires HHSC to evaluate the clinical outcomes of participants
enrolled in a disease management program.  Requires the system to report
the progress of the study to the governor, lieutenant governor, and
speaker of the house of representatives not later than December 1, 2004,
and the final results of the study not later than December 1, 2005. 
 
(d)  Authorizes the Teacher Retirement System of Texas to conduct the
study under Subsection (c) of this article in conjunction with an academic
center. 
 
(e)  Provides that Subsections (c) and (d) of this article and this
subsection expire January  1, 2006. 

SECTION 3.  Amends Subchapter E, Chapter 1551, Insurance Code, as
effective June 1, 2003, by adding Section 1551.219, as follows: 
 
Sec. 1551.219.  DISEASE MANAGEMENT SERVICES.  (a)  Defines "disease
management services." 
 
(b)  Requires a group health benefit plan offered under the group benefits
program to provide disease management services or coverage for disease
management services in the manner required by the board of trustees,
including certain services. 
  
(c)  Requires the board of trustees to conduct a study that evaluates the
savings to the state as a result of implementation of the comprehensive
disease management programs described by Subsections (a) and (b).
Requires the board of trustees to evaluate the clinical outcomes of
participants enrolled in a disease management program.  Requires the board
of trustees to report the progress of the study to the governor,
lieutenant governor, and speaker of the house of representatives not later
than December 1, 2004, and the final results of the study not later than
December 1, 2005. 
 
(d)  Authorizes the board of trustees to conduct the study under
Subsection (c) in conjunction with an academic center. 
 
(e)  Provides that Subsections (c) and (d) and this subsection expire
January 1, 2006. 
 
SECTION 4.  Amends Subchapter D, Chapter 1575, Insurance Code, as
effective June 1, 2003, by adding Section 1575.162, as follows: 
 
Sec. 1575.162.  DISEASE MANAGEMENT SERVICES.  (a)  Defines "disease
management services." 
 
(b)  Requires a health benefit plan provided under this chapter to provide
disease management services or coverage for disease management services in
the manner required by the Teacher Retirement System of Texas, including
certain services. 
  
(c)  Requires the Teacher Retirement System of Texas to conduct a study
that evaluates the savings to the state as a result of implementation of
the comprehensive disease management programs described by Subsections (a)
and (b).  Requires the Teacher Retirement System of Texas to evaluate the
clinical outcomes of participants enrolled in a disease management
program.  Requires the  Teacher Retirement System of Texas to report the
progress of the study to the governor, lieutenant governor, and speaker of
the house of representatives not later than December 1, 2004, and the
final results of the study not later than December 1, 2005. 
 
(d)  Authorizes the Teacher Retirement System of Texas to conduct the
study under        r Subsection (c) in conjunction with an academic
center. 
 
(e)  Provides that Subsections (c) and (d) and this subsection expire
January 1, 2006. 

SECTION 5.  Amends Subchapter C, Chapter 1601, Insurance Code, as
effective June 1, 2003, by adding Section 1601.110, as follows: 
 
Sec. 1601.110.  DISEASE MANAGEMENT SERVICES.  (a)  Defines "disease
management services." 
 
(b)  Requires a health benefit plan provided under this chapter to provide
disease management services or coverage for disease management services in
the manner required by the governing board of a system, including certain
services. 
 
(c)  Requires the governing board of each system to conduct a study that
evaluates the savings to the state as a result of implementation of
comprehensive disease management programs as described by Subsections (a)
and (b).  Requires the governing board of a system to evaluate the
clinical outcomes of participants enrolled in a disease management
program.  Requires the governing board of a system to report the progress
of the study to the governor, lieutenant governor, and speaker of the
house of representatives not later than December 1, 2004, and the final
results of the study not later than December 1, 2005. 
 
(d)  Authorizes the governing board of a system to conduct the study under
Subsection (c) in conjunction with an academic center. 
 
(e)  Provides that Subsections (c) and (d) and this subsection expire
January 1, 2006. 
 
SECTION 6.  Amends Subchapter E, Chapter 501, Government Code, by adding
Section 501.149, as follows: 
 
Sec. 501.149.  DISEASE MANAGEMENT SERVICES.  (a)  Defines "disease
management services." 
 
(b)  Requires a managed health care plan provided under this chapter to
provide disease management services in the manner required by the
Correctional Managed Health Care Committee (committee), including certain
services. 
  
(c)  Requires the committee to conduct a study that evaluates the savings
to the state as a result of implementation of comprehensive disease
management programs described by Subsections (a) and (b).  Requires the
committee to evaluate the clinical outcomes of participants enrolled in a
disease management program.  Requires the committee to report the progress
of the study to the governor, lieutenant governor, and speaker of the
house of representatives not later than December 1, 2004, and the final
results of the study not later than December 1, 2005. 
 
(d)  Authorizes the committee to conduct the study under Subsection (c) in
conjunction with an academic center. 
 
 (e)  Provides that Subsections (c) and (d) and this subsection expire
January 1,  2006 

SECTION 7.  Section 533.009, Government Code,  is amended to read as
follows: 
 
Sec. 533.009.  SPECIAL DISEASE MANAGEMENT.  (a)  Requires HHSC to ensure
that managed care organizations under contract with HHSC to provide health
care services to recipients develop and implement special disease
management programs to manage a disease or other, rather than address,
chronic health conditions, such as heart disease, respiratory illness,
including asthma, diabetes, end-stage renal disease, HIV infection, or
AIDS, and with respect to which the commission identifies populations for
which disease management would be cost-effective. 
 
(b)  Requires a managed health care plan provided under this chapter to
provide disease management services in the manner required by HHSC,
including certain services. 
  
(c)  Requires HHSC to conduct a study that evaluates the savings to the
state as a result of implementation of comprehensive disease management
programs described by Subsections (a) and (b).  Requires HHSC to evaluate
the clinical outcomes of participants enrolled in a disease management
program.  Requires HHSC to report the progress of the study to the
governor, lieutenant governor, and speaker of the house of representatives
not later than December 1, 2004, and the final results of the study not
later than December 1, 2005, rather than studying the cost-benefit data of
applying disease management principles in the delivery of Medicaid to
certain patients.  
 
(d)  Authorizes HHSC to conduct the study under Subsection  (c) in
conjunction with an academic center. 
 
 (e)  Provides that Subsections (c) and (d) and this subsection expire
January 1, 2006. 
 
SECTION 8.  Requires the state child health plan, each health coverage
plan provided under Article 3.50-7, Insurance Code, each health benefit
plan provided under Chapter 1551, 1575, or 1601, Insurance Code, the
managed health care plan provided under Subchapter E, Chapter 501,
Government Code, and a Medicaid managed care plan subject to Chapter 533,
Government Code, to provide disease management services or coverage for
disease management services in accordance with this Act as soon as
practicable after the effective date of this Act, but not later than
January 1, 2004. 
 
SECTION 9.  Effective date:  upon passage or September 1, 2003.