MINUTES 
          
             SENATE INTERIM COMMITTEE ON HEALTH AND HUMAN SERVICES  
                              Friday, May 29, 1998 
                                     9 a.m. 
                                 Senate Chamber 
          
                                      ***** 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.11, a public hearing of the Senate Interim Committee on  
         Health and Human Services was held on Friday, May 29, 1998, in  
         the Senate Chamber at Austin, Texas.   
          
                                      ***** 
          
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Judith Zaffirini, Chair         Senator Chris Harris 
         Senator John Carona                     Senator Jon Lindsay 
         Senator Frank Madla 
          
                                      ***** 
         The chair called the meeting to order at 9 a.m.  There being a  
         quorum present, the following business was transacted.   
          
         The chair laid out the October 7, 1997, and the January 22,  
         1998, minutes and called for revisions.  There being none,  
         Senator Madla moved approval.  There being no objection, the  
         motion prevailed by unanimous consent. 
          
         The chair made opening remarks and announced that the purpose  
         of the meeting was to receive progress reports and preliminary  
         recommendations regarding the charges issued to the committee  
         by Lt. Gov. Bob Bullock. 
          
         The chair called invited panelists to present progress reports  
         and preliminary recommendations regarding the implementation  
         of SB 30 by Sen. Judith Zaffirini and Rep. Glen Maxey,  
         relating to fraud and improper payments under the state  
         Medicaid program. 
          
         The following person provided oral and written testimony: 
          
              Don Gilbert, commissioner, Texas Health and Human  
              Services Commission, 4900 North Lamar, Austin, Texas  
              78751. 
          
         The following persons provided oral testimony: 
          
              Beth Taylor, director, Medicaid Fraud Control Unit,  
              Office of the Attorney General, P.O. Box 12548, Austin,  
              Texas 78711-25548. 
          
              Eric Bost, commissioner, Texas Department of Human  
              Services, P.O. Box 149030, Austin, Texas 78714-3011. 
          
         The chair called the following person who registered as a  
         resource witness on SB 30 to provide oral testimony: 
          
              Aurora F. LeBrun, associate commissioner, Office of  
              Investigations and Enforcement, Texas Health and Human  
              Services Commission, 4900 N. Lamar, Austin, Texas 78751. 
          
         The following person registered as a resource witness on SB  
         30, but did not testify: 
          
              Randy Washington, deputy commissioner for health care  
              financing, Texas Department of Health, 1100 West 49th  
              Street, Austin, Texas 78756. 
          
         The chair called invited panelists to present progress reports  
         and preliminary recommendations regarding efforts to reduce  
         fraud and improper payments under state Medicaid and welfare  
         programs. 
          
         The following persons provided oral testimony: 
          
              Beth Taylor, director, Medicaid Fraud Control Unit,  
              Office of the Attorney General, P.O. Box 12548, Austin,  
              Texas 78711-2548. 
          
              Don Gilbert, commissioner, Texas Health and Human  
              Services Commission, 4900 North Lamar, Austin, Texas  
              78751. 
          
              Eric Bost, commissioner, Texas Department of Human  
              Services, P.O. Box 149030, Austin, Texas 78714-3011. 
          
              Dr. William Archer, commissioner, Texas Department of  
              Health, 1100 West 49th Street, Austin, Texas 78757. 
          
         The chair called the following person who registered as a  
         resource witness on Medicaid and welfare fraud to provide oral  
         testimony: 
          
              Aurora F. LeBrun, associate commissioner, Office of  
              Investigations and Enforcement, Texas Health and Human  
              Services Commission, 4900 N. Lamar, Austin, Texas 78751. 
          
         The following person registered as a resource witness on  
         Medicaid and welfare fraud, but did not testify: 
          
              Randy Washington, deputy commissioner for health care  
              financing, Texas Department of Health, 1100 West 49th  
              Street, Austin, Texas 78756. 
          
         The chair called invited panelists to present progress reports  
         and preliminary recommendations regarding federal welfare  
         reform.  
          
         The following person provided oral and written testimony: 
          
              Diane Rath, commissioner, Texas Workforce Commission, 101  
              East 15th Street, Austin, Texas  78778-0001. 
          
         The following persons provided oral testimony: 
          
              Eric Bost, commissioner, Texas Department of Human  
              Services, P.O. Box 149030, Austin, Texas 78714-3011. 
          
              Jorge Vega, first assistant attorney general, Office of  
              the Attorney General, P.O. Box 12548, Austin, Texas  
              78711-2548. 
          
         The chair called invited panelists to present progress reports  
         and preliminary recommendations regarding implementation of SB  
         55 by Sen. Judith Zaffirini and Rep. Hugo Berlanga, relating  
         to minors' access to tobacco. 
          
         The following persons provided oral testimony: 
          
              Dr. William Archer, commissioner, Texas Department of  
              Health, 1100 West 49th Street, Austin, Texas 78757. 
          
              Robin Herskowitz, senior policy analyst, Comptroller of  
              Public Accounts, 111 East 17th Street, Austin, Texas  
              78711-3528. 
          
         The following person registered as a resource witness on SB  
         55, but did not testify: 
          
              Phil Huang, MD, chief, Bureau of Chronic Disease, Texas  
              Department of Health, 1100 West 49th Street, Austin,  
              Texas 78756. 
          
         The chair called invited panelists to present progress reports  
         regarding developments in the federal tobacco settlement.  
          
         The following person provided oral and written testimony: 
          
              Laurie M. Rich, executive director, Texas Office of  
              State-Federal Relations, 122 C. Street, N.W., Suite 200,  
              Washington, DC 20001. 
          
         The chair called invited panelists to present progress reports  
         regarding demographic trends of Texas that will impact the  
         health and human services delivery system in the future. 
          
         The following person provided oral and written testimony: 
          
              Arturo Hernandez, deputy for programs, Texas Commission  
              on Alcohol and Drug Abuse, 9001 N. IH 35, Suite 105,  
              Austin, Texas 78753. 
          
         The following persons provided oral testimony: 
  
              Jim Hine, executive director, Texas Department of  
              Protective and Regulatory Services,  
              P.O. Box 149030, Austin, Texas 78714-9030. 
          
              Eric Bost, commissioner, Texas Department of Human  
              Services, P.O. Box 149030, Austin, Texas 78714-3011. 
          
              Dr. William Archer, commissioner, Texas Department of  
              Health, 1100 West 49th Street, Austin, Texas 78757. 
          
         The chair called invited panelists to present progress reports  
         and preliminary recommendations regarding current practices in  
         patient billing by Texas hospitals and providers of health  
         care to evaluate the accuracy, clarity and timeliness of  
         patient billing. 
          
         The following person provided oral and written testimony: 
          
              Dr. Bruce Levy, chair, Health Professions Council, and  
              executive director, Texas State Board of Medical  
              Examiners, 333 Guadalupe, Tower III, Suite 610, Austin,  
              Texas 78768-2018. 
          
         The following persons provided oral testimony: 
          
              Phillip A. Caron, chief financial officer, United  
              Regional Health Care System, 1600 Tenth Street, Wichita  
              Falls, Texas 76301. 
          
              Roy Ray, PhD, legislative volunteer, American Association  
              of Retired Persons, P.O. Box 12786, Austin, Texas 78757. 
          
              John Evans, hospital licensing director, Health Facility  
              Licensing Division, Texas Department of Health, 1100 West  
              49th Street, Austin, Texas 78757. 
          
              Tony Cobos, legal counsel, Texas State Board of Medical  
              Examiners, 333 Guadalupe, Tower III, Suite 610, Austin,  
              Texas 78768-2018. 
          
         The chair called the following person who registered as a  
         public witness to provide  testimony regarding current  
         practices in patient billing. 
          
         The following person provided oral testimony: 
          
              Paul B. Handel, president, Harris County Medical Society,  
              1213 Hermann, Houston, Texas  77004. 
          
         There being no other witnesses registered or responding to the  
         chair's call for public testimony related to the charges, the  
         chair closed public testimony. 
          
         The chair announced that anyone wishing to submit  
  
         recommendations relating to the charges must do so by June 30.   
         An extended staff working group will develop recommendations  
         to be considered by committee members for possible inclusion  
         in the committee's Oct. 1 report to Lt. Gov. Bullock.  
          
         With no other business to come before the committee and upon a  
         motion by Senator Carona, the chair recessed the committee by  
         unanimous consent at 12:45 p.m., subject to the call of the  
         chair. 
          
         Senator Judith Zaffirini, Chair 
          
         Monica D. Cruz, Committee Clerk