HBA-JEK C.S.S.B. 789 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 789
By: Moncrief
Public Health
5/7/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Texas faces unique challenges with its health care system.  The state has
experienced a larger population increase than any other state in the nation
in the past decade, especially in its Hispanic and aging babyboomer
populations.  Rural Texas has difficulty recruiting doctors, and several
counties in Texas do not even have a physician.  Telemedicine has the
potential to bring health services to rural and underserved communities.
C.S.S.B. 789 sets forth provisions regarding the reimbursement and the
regulation of telemedicine medical services in Texas. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Health and Human Services
Commission in SECTION 1 (Section 531.0216, Government Code), SECTION 2
(Section 531.02161, Government Code), SECTION 3 (Section 531.0217,
Government Code), SECTION 15 (Section 57.0475, Utilities Code), SECTION 17
(Section 32.053, Human Resources Code), and SECTION 21, to the
Telecommunications Infrastructure Fund Board in SECTION 2 (Section
531.02161, Government Code) and SECTION 15 (Section 57.0475, Utilities
Code), to the Texas Board of Mental Health and Mental Retardation in
SECTION 18 (Section 533.102, Health and Safety Code), and to the Texas
State Board of Medical Examiners in SECTION 3 (Section 531.0217, Government
Code), and SECTION 9 (Section 6, Article 21.53F, Insurance Code) of this
bill.  

ANALYSIS

C.S.S.B. 789 amends the Government Code to require the Health and Human
Services Commission (HHSC) and the Telecommunications Infrastructure Fund
Board (TIF board) by joint rule to establish and adopt minimum standards
for an operating system used in the provision of telemedicine medical
services (telemedicine) by a health care facility participating in the
state Medicaid program no later than October 1, 2001.  The bill sets forth
requirements for minimum standards for the system (SECTIONS 2 and 20). The
bill requires HHSC no later than January 1, 2002, to require by rule each
human services agency that administers a part of the Medicaid program to
provide Medicaid reimbursement for a telemedicine medical service that is
initiated by or provided by a physician (SECTIONS 3 and 21). 

C.S.S.B. 789 prohibits HHSC from reimbursing a health care facility for
telemedicine provided to a Medicaid recipient unless the facility complies
with the minimum standards adopted by HHSC and the TIF board.  The bill
requires HHSC by rule to consult with the Texas Department of Health (TDH)
and the telemedicine advisory committee to develop a procedure to deny
reimbursement for a health care service that, based on credible, clinical
evidence, is shown to be medically inappropriate.  C.S.S.B. 789 requires
HHSC by rule to establish pilot programs in designated areas under which
HHSC, in administering government-funded health programs, may reimburse a
health professional participant in the pilot program for telehealth
services and by rule to establish a separate provider identifier for
telemedicine providers.  The bill requires HHSC to report to the speaker of
the house of representatives and the lieutenant governor on the effects of
telemedicine on the Medicaid program in the state no later than December 1
of each evennumbered year, and  authorizes HHSC to adopt rules as necessary
to implement provisions related to telemedicine reimbursement (SECTION 1). 
 
C.S.S.B. 789 provides that HHSC shall require facilities and providers of
telemedicine medical services to make a good faith effort to identify and
coordinate with existing providers to preserve and protect existing health
care systems and medical relationships in an area.  The bill requires HHSC
to require a patient's primary care physician or provider to be notified of
the telemedicine medical service for the purpose of sharing information if
the patient consents to the notification.  The bill requires HHSC in
consultation with the Texas State Board of Medical Examiners (TSBME) to
monitor and regulate the use of telemedicine to ensure compliance with
these provisions, and authorizes HHSC to use a corrective action plan to
ensure compliance (SECTION 3). 

C.S.S.B. 789 amends the Government and Insurance codes to authorize TSBME,
in consultation with HHSC, to adopt rules as necessary to establish
supervisory requirements for a service delegated to and performed by an
individual who is not a physician, to define those situations when a
face-to-face consultation with a physician is required after a telemedicine
medical service.  The bill authorizes TSBME in consultation with the
commissioner of insurance to adopt rules necessary to ensure adequate
supervision of health professionals who are not physicians and who provide
telemedicine, to establish the maximum number of health professionals who
are not physicians that a physician may supervise through telemedicine, and
to require a face-to-face consultation between a  patient and a physician
providing telemedicine within a certain number of days following an initial
telemedicine service only if the physician has never seen the patient
(SECTIONS 3 and 9). 

The bill amends the Government Code to provide that the advisory committee
established by HHSC is to coordinate state telemedicine efforts and assist
HHSC in evaluating, monitoring, and coordinating telemedicine services and
reimbursement.  The bill provides that the telemedicine provisions do not
affect any requirement relating to a federally qualified health center, a
rural health clinic, or physician delegation of the authority to carry out
or sign prescription drug orders to an advanced practice nurse or physician
assistant (SECTION 3). 

C.S.S.B. 789 amends the Health and Safety Code to provide that a health
plan provider that is providing state child health plan (CHIP) covered
benefits to a child must permit benefits to be provided through
telemedicine in accordance with policies developed by HHSC.  The bill sets
forth benefits for which the policies must provide and requires HHSC to
consult with the telemedicine advisory committee in developing the polices
(SECTION 4). 

C.S.S.B. 789 amends the Utilities Code to require the TIF board to
establish an assistance program to provide education concerning the
telecommunications infrastructure fund and to facilitate access to funds
and programs by health care facilities and physicians (SECTION 12).  The
bill requires the TIF board to use money in the qualifying entities account
for funding an automated system to integrate client services and
eligibility requirements for health and human services across agencies
(SECTION 13).  This requirement expires September 1, 2003 (SECTION 23). 

The bill requires the TIF board and HHSC jointly to adopt rules prescribing
the criteria that certain health care facilities must meet to be eligible
to receive a grant from the TIF board and sets forth requirements regarding
the criteria (SECTION 15).  On customer request, the bill requires an
electing company to provide private network services to a project that
would have been eligible to be funded by the telecommunications
infrastructure fund under provisions existing January 1, 2001 (SECTION 16). 

C.S.S.B. 789 amends the Human Resources Code to require HHSC to establish a
home telemedicine pilot program under which certain Medicaid recipients
receive home health care services through home telemonitoring systems.  The
bill sets forth provisions regarding the eligibility criteria, the
locations, the reimbursement levels, and the services provided through the
pilot program.  In designing and implementing the pilot program, HHSC is
required to ensure that a participant receives the necessary equipment,
training, and instruction and that a participant's satisfaction and the
quality of services is frequently monitored and evaluated.  The bill
requires HHSC to adopt rules necessary for implementing the pilot program
and to submit a report to the legislature regarding the program by December
1, 2004.  The pilot program expires September 1, 2005 (SECTION 17). 
 
C.S.S.B. 789 amends the Health and Safety Code to require the Texas Board
of Mental Health and Mental Retardation (MHMR board) and the Texas
Department of Mental Health and Mental Retardation (MHMR) to develop and
implement a pilot program (jail diversion program) in one rural area and
one urban area designed to incorporate audiovisual telecommunications
systems to divert persons with mental illness from the criminal justice
system, to provide access to appropriate mental health services to persons
who have entered the criminal justice system, and to increase the awareness
of law enforcement officers and officials to mental health issues that may
bring persons with mental illness into the criminal justice system.  The
bill requires HHSC to employ to the greatest extent practicable available
electronic information systems for the jail diversion program.  The bill
requires MHMR and participating legal and mental health entities to enter
into an agreement regarding the jail diversion program and the duties of
each participating entity.  The bill requires a participating county to be
responsible for establishing the diversion team as prescribed by the
department.  The bill requires the jail diversion program to incorporate
prebooking diversion and postbooking diversion in court and in jail.  The
bill specifies that the jail diversion program must provide for the
electronic transmission of information concerning all admissions to jails
participating in the program to an information system at a local mental
health authority.  The bill requires the MHMR board to evaluate the jail
diversion program and to report to the governor, lieutenant governor, and
speaker of the house of representatives not later than November 1 of each
even-numbered year.  The jail diversion program expires September 1, 2005
(SECTION 18). 

The bill requires the commissioner of human services to appoint not later
than the 30th day after the effective date of this bill a program
administrator to administer a pilot program that uses teledentistry and
other methods of delivering dental services to provide dental services to
students in one public school district in the state (teledentistry
program).  C.S.S.B. 789 sets forth the conditions under which, for purposes
of the teledentistry program, a licensed dentist may delegate orally, in
writing, or through advanced audio and video telecommunications services a
service, task, or procedure to a dental hygienist under his or her
supervision.  The bill requires the program administrator to establish an
advisory committee for the teledentistry program within 30 days of being
appointed (SECTIONS 19 and 22).  The bill sets forth provisions regarding
the development and implementation of the teledentistry program.  The bill
specifies that only a teledentistry dental service initiated by or provided
by a licensed dentist in this state may be reimbursed under the Medicaid
program at the same rate as the Medicaid program reimbursements for a
comparable in-person dental service.  The bill prohibits a request for
reimbursement from being denied solely because an in-person consultation
between a dentist or other dental professional and a patient did not occur.
The bill also prohibits a teledentistry dental service from being provided
under the teledentistry program if an in-person consultation with a dentist
is reasonably available to a student.  The program administrator is
required to use the results of the teledentistry program to determine the
efficacy and the effectiveness of teledentistry.  The bill requires the
program administrator to report on the teledentistry program to the
legislature no later than December 31, 2002.  The teledentistry program
expires and the advisory committee is abolished December 31, 2002 (SECTION
19). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 789 differs from the original bill by establishing a home
telemedicine pilot program, jail diversion pilot program for persons with
mental illness, and a teledentistry pilot program for implementation in a
school (SECTIONS 17-19).  The substitute adds provisions regarding
telemedicine medical services for children through the state child health
plan (CHIP) (SECTION 4). 

The substitute requires the Health and Human Services Commission (HHSC) and
the Telecommunications Infrastructure Fund Board (TIF board) by joint rule
to establish and adopt minimum standards for an operating system used in
the provision of telemedicine medical services by a health care facility
participating in the state Medicaid program (SECTIONS 2 and 20).  The
substitute prohibits HHSC from reimbursing a health care facility for
telemedicine medical services provided to a Medicaid recipient unless the
facility  complies with these minimum standards.  The substitute requires
HHSC by rule to consult with the Texas Department of Health (TDH) and the
telemedicine advisory committee (committee) to develop a procedure to deny
reimbursement for a medical service that is shown to be medically
inappropriate.  The substitute removes provisions requiring HHSC to consult
with TDH and the committee to establish procedures to identify clinical
evidence supporting delivery of health care services using a
telecommunications system and establish pilot studies for telemedicine
medical service delivery, and annually review reimbursement for health care
services.  (SECTION 1).  The substitute sets forth eligibility criteria for
grants for telemedicine medical services to health care facilities (SECTION
15). 

C.S.S.B. 789 requires the TIF board to use money in the qualifying entities
account for funding an automated system to integrate client services and
eligibility requirements for health and human services across agencies
(SECTIONS 13 and 23).  The substitute adds that a telemedicine patient's
consent is necessary to require the patient's primary care provider to be
notified of the telemedicine services provided.  The substitute modifies
the duties of the telemedicine advisory committee (SECTION 3). 

C.S.S.B. 789 requires the Texas State Board of Medical Examiners, in
consultation with the commissioner of insurance, to adopt rules to ensure
adequate supervision of health professionals who are not physicians and who
provide telemedicine medical services, to establish the maximum number of
health professionals who are not physicians that a physician may supervise
through a telemedicine medical service, and to require a face-to-face
consultation between a patient and a physician providing a telemedicine
medical service if the physician has never seen the patient (SECTION 9).
The substitute modifies the conditions under which an electing company is
required to provide private network services to telecommunications
infrastructure projects (SECTION 16). 

The substitute removes provisions authorizing the appropriate licensing
agency for a person providing telehealth services to adopt rules, in
consultation with the commissioner of insurance, to ensure that appropriate
care is provided and to prevent abuse and fraud.