S.B. 691 78(R) BILL ANALYSIS S.B. 691 By: Madla State Health Care Expenditures, Select Committee Report (Unamended) BACKGROUND AND PURPOSE Currently, the Health and Human Services Commission (HHSC) does not review telemedicine services. S.B. 691 requires HHSC to review telemedicine programs to integrate them into the entire health care delivery system. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. ANALYSIS The bill directs the HHSC to periodically review policies regarding reimbursement under the Medicaid program for telemedicine medical services to identify variations between permissible reimbursement under that program and reimbursement available to providers under the Medicare program and to modify rules and procedures applicable to reimbursement under the Medicaid program for telemedicine medical services as necessary to provide for a reimbursement system that is comparable to the reimbursement system for those services under the Medicare program. In addition, the HHSC is authorized to review rules and procedures applicable to reimbursement of telemedicine medical services provided through any government-funded health program subject to HHSC oversight and modify rules and procedures to ensure that reimbursement for telemedicine medical services is provided in a cost-effective manner and only in circumstances in which the provision of those services is clinically effective. The HHSC is further directed to seek any federal waiver or authorization that may be needed to implement this legislation. EFFECTIVE DATE This act takes effect September 1, 2003.