SENATE COMMITTEE ON FINANCE 
                           Subcommittee on Medical Costs 
                             Tuesday, February 26, 2002 
                                     8:30 a.m. 
                           Capitol Extension, Room E1.036 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Finance was  
         held on Tuesday, February 26, 2002, in the Capitol Extension,  
         Room E1.036, at Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Robert Duncan, Chair 
         Senator Gonzalo Barrientos               
         Senator Troy Fraser                      
         Senator Steve Ogden                      
         Senator Todd Staples                     
         Senator Carlos Truan                     
         Senator Judith Zaffirini                 
         Senator Robert Duncan, the acting chair, called the meeting to  
         order at 8:33 p.m.  The following business was transacted:   
         The Chair made opening remarks and welcomed the subcommittee  
         members and their staff.  The Chair explained to members that  
         the purpose of the todays hearing was to gain a clear  
         understanding of Medicaid and CHIP.  It is the intent of the  
         Chair to hold all Medical Cost hearings in Austin.  
         The Chair welcomed Senator Staples to his first Senate Finance  
         Committee hearing and then called the following invited  
         witnesses to provide oral testimony: 
              Stephanie Coates, representing the Legislative Budget  
              Board, answered questions and provided an overview  
              entitled, State Expenditures on Health Care Programs. 
              Phyllis Combs and Ruthie Ford, both representing the  
              Comptroller of Public Accounts, answered questions and  
              briefed the committee on Texas Health Care Spending. 
              Matt Keith, representing the Bulk Purchasing Commission,  
              answered questions from the committee and gave an overview  
              on the report from the Interagency Council on  
              Pharmaceuticals Bulk Purchasing. 
              Commissioner Don Gilbert, representing the Health and Human  
              Services Commission, answered questions and gave a detailed  
              presentation on Medicaid. 
         The Chair announced that due to lack of time, the Committee will  
         hear the CHIP portion of Commissioner Gilbert's presentation at  
         a later date. 
         There being no further business, at 11:47 p.m. Senator Duncan  
         moved that the Committee stand recessed subject to the call of  
         the Chair.  Without objection, it was so ordered.   
         Senator Robert Duncan, Chair 
         Amber Martin, Clerk