MINUTES 
          
            SENATE COMMITTEE ON CHILDREN'S HEALTH INSURANCE (INTERIM) 
                             Thursday, June 25, 1998 
                                     9:30 am 
                                     E1.030 
          
                                      ***** 
          
         Pursuant to a notice posted in accordance with Senate Rule  
         11.11, a public hearing of the Senate Committee on Children's  
         Health Insurance (Interim) was held on Thursday, June 25, 1998  
         in E1.030, at Austin, Texas.   
          
         Note:   The public hearing was a joint hearing of the Senate  
         Interim Committee on Children's Health Insurance, the House  
         Committee on Public Health and the House Committee on  
         Appropriations.  The following reflects only information  
         relating to the Senate committee.   Minutes for the House  
         committees will be provided by the respective committee  
         staffs.  
          
                                      ***** 
          
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Mike Moncrief, Chair            None 
         Senator Bill Ratliff 
         Senator Eliot Shapleigh 
          
                                      ***** 
          
         The Chair called the meeting to order at 9:45 am.  There being  
         a quorum present, the following business was transacted.   
          
         The following members arrived after the roll was called:   
         Senator Bill Ratliff. 
          
         The Chair made opening remarks, welcomed invited speakers,  
         state agency staff and the public.  The Chair announced that  
         the purpose of the hearing was to obtain information relating  
         to the background and plans for the implementation of  the  
         Texas Children's Health Insurance Program (hereafter CHIP)  
         authorized  by the Federal Balanced Budget Act of 1997 and  
         Title XXI of the Social Security Act.   
          
         The Chair then called  on Commissioner Don Gilbert of the  
         Texas Health & Human Services Commission, who briefed the  
         Committee regarding approval of the Phase I plan and provided  
         a status report on the development of the Phase II plan.  The  
         Commissioner then responded to questions from members. 
          
         The Chair called the Legislative Budget Board (hereafter LBB)  
         staff,  Mr. Trey Berndt and Ms. Maureen McCormack, to brief  
  
         the Committee on issues relating to benefits package options  
         authorized under the CHIP program.  The LBB staff responded to  
         questions by Committee Members.  
         The Chair then called Rhonda Myron, representing the Texas  
         Department of Insurance, to brief the Committee on the legal  
         requirements relating to mandated benefits under state law.    
         Trey Berndt of the LBB briefed the Committee on federal law  
         and agency guidance and regulations relating to benefits. The  
         Chair thanked  and dismissed the witnesses. 
          
         The Chair then called Ms. Anita Zinnecker of the LBB staff,   
         to make a presentation regarding the current  state services  
         provided for special needs children in Texas. Ms. Zinnecker  
         responded to questions from the Committee Members.  The Chair  
         thanked and dismissed the witness. 
          
         The Chair called Ms. Debbie Berndt, representing the Texas  
         Department of Mental Health & Mental Retardation, to discuss  
         the issue of benefits conversion as it relates to special  
         needs children.   Ms. Berndt responded to Members' questions.   
         The Chair thanked  and dismissed the witnesses. 
          
         The Chair called the first panel:  Ms. Tyrette Hamilton,  
         representing the Texas Healthy Kids Corporation; Ms. Sheila  
         Beckett, representing the Texas Employees Retirement System;  
         and, Ms. Linda Wertz, the Texas Medicaid Director.  The panel  
         discussed various issues relating to benefits packages, and  
         responded to Members' questions.  The Chair thanked the panel  
         and dismissed the witnesses. 
           
         The Chair recessed the Committee at 11:50 a.m. 
          
         The Chair reconvened the hearing at 1:40 p.m.  
          
         The Chair called the second panel representing providers:    
         Dr. Jane Rider, representing the Texas Medical Association,  
         the Texas Pediatric Society, and the Texas Association of  
         Family Physicians; Dr. Ronald Johnson, representing the Texas  
         Dental Association; Dr. Charlotte Stelly-Seitz, representing  
         the Texas Medical Association, Texas Pediatric Society, and  
         the Texas Association of Family Physicians;  Dr. Richard  
         Wayne, representing Santa Rosa Children's Hospital and the  
         Texas Children's Hospital Association; Dr. Thomas Van Hoose,  
         representing the Texas Psychological Association; and Mr. Jose  
         Camacho, representing the Texas Association of Community  
         Health Clinics.  The panel made presentations relating to  
         necessary health care benefits, and responded to Members'  
         questions.  The Chair thanked the panel and dismissed the  
         witnesses. 
          
         The Chair then called  the panel representing consumers and  
         advocates:  Mr. Gary Wood, representing  the Texas Mental  
         Health Association; Mr. Jonas Schwartz, representing United  
         Cerebral Palsy of Texas; and Ms. Anne Dunkelberg, representing  
         the Center for Public Policy Priorities.  The panel made  
  
         presentations relating to necessary health care benefits, and  
         responded to Members' questions.    The Chair thanked and  
         dismissed the witnesses. 
          
         The Chair called a panel representing the insurance industry  
         to further discuss matters related to  benefits.  The panel  
         members were:  Ms. Mary McGuire, representing the Texas  
         Universities Health Plan and the managed care industry; and,  
         Mr. Don Hall, representing  Blue Cross and Blue Shield of  
         Texas.  The panel testified and responded to questions.  The  
         Chair thanked and dismissed the panel. 
          
         The Chair made closing comments. 
          
         At 3:50 p.m., Senator Moncrief, the Chair,  announced that the  
         Committee would stand recessed subject to call of the Chair.     
         Without objection, it was so ordered. 
          
         ____________________________________ 
         Senator Mike Moncrief, Chair 
          
         ____________________________________ 
         Gina Martin, Clerk