HBA-MPM S.B. 1591 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1591 By: Zaffirini Public Health 5/11/1999 Engrossed BACKGROUND AND PURPOSE The Texas Performance Review recommended that Texas implement national electronic interchange standards for health care claims and streamline health care data reporting and processing. Due to widespread frustration regarding health care claims payments, Congress passed legislation in 1996 that required claims payers to support electronic claims processing using national electronic data interchange (EDI) standards. S.B. 1591 requires the implementation of national standards for the electronic processing of health care and health payment information. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Health and Human Service Commission in SECTION 2 (Section 532.002, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 531B, Government Code, by adding Sections 531.0315 and 531.0316, as follows: Sec. 531.0315. IMPLEMENTING NATIONAL ELECTRONIC DATA INTERCHANGE STANDARDS FOR HEALTH CARE INFORMATION. (a) Requires each health and human services agency and every other state agency acting as a health care provider or a claims payer for the provision of health care to take certain actions with respect to the processing of information related to health care. Provides that this section does not prohibit a state agency from seeking a federal waiver from compliance under applicable federal law. Sec. 531.0316. HEALTH CLAIMS INFORMATION ON INTERNET. Requires the Health and Human Service Commission (commission) and the Texas Health Care Information Council (council) to develop a plan to make information about claims for the provision of health care that are paid with state money and information about other claims for the provision of health care that is collected by the state available through the Internet, to the extent that the information is not identifiable to any individual. Requires the commission and council to submit the plan to the presiding officers of each house of the legislature no later than November 1, 2000. Provides that this section expires September 1, 2001. SECTION 2. Amends Section 532.002, Government Code, by adding Subsection(c), to require the commission to require, by rule, that each contract to carry out the purposes of this chapter, whether entered into by the commission, by a health and human services agency acting under Section 532.004 (Delegation of Authority), or by an intergovernmental initiative, require any contractor that will create, maintain, or process information related to the provision of or payment for health care to comply in a timely manner with the national data interchange standards adopted under 42. U.S.C., Section 1320d et seq. (Health Insurance Portability and Accountability Act of 1996). SECTION 3. Amends Section 109.061, Health and Safety Code, by adding Subsection (j), to require the Texas Healthy Kids Corporation to require eligible coverage to comply in a timely manner, in connection with the program, with the national data interchange standards adopted under 42 U.S.C., Section 1320d et seq., and its subsequent amendments. SECTION 4. Establishes the National Data Interchange Standards Task Force (task force) and sets forth the task force's purpose. Requires the task force to analyze the standards, the legal requirements related to the standards, and the state's health care payment or information systems in existence or under development as part of developing the state's strategy. Set's forth the composition of the task force, which is composed of certain administrative heads of certain state offices or the heads' designees. Provides that the representative of the commission is the task force's presiding officer. Requires the commission to direct the analyses under this section. Authorizes the staff of each office and agency represented on the task force to assist in performing its duties. Requires the task force to periodically report the results and conclusions of its analyses and recommend needed legislation to the legislature. Abolishes the task force September 1, 2005. SECTION 5.Emergency clause. Effective date: upon passage.