SENATE COMMITTEE ON FINANCE 
                        Subcommittee on Rising Medical Costs 
                            Thursday, September 5, 2002 
                                     8:30 a.m. 
                             Capital Extension, E1.036 
                                   Austin, Texas 
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Finance was  
         held on Thursday, September 5, 2002, in E1.036 at Austin, Texas. 
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Robert Duncan, Chair            Senator Judith Zaffirini 
         Senator Gonzalo Barrientos               
         Senator Troy Fraser                      
         Senator Steve Ogden                      
         Senator Todd Staples                     
         Senator Carlos Truan                     
         Senator Robert Duncan, the acting chair, called the meeting to  
         order at 8:33 p.m.  Senator Averitt was also present for a  
         portion of the hearing.  The following business was transacted:   
         The following invited witnesses answered questions and provided  
         oral testimony: 
              Charles Dunlap and Ronnie Jung, both representing the  
              Teacher Retirement System, answered questions and briefed  
              the committee on the agency's LAR funding requests for  
              Dr. Ben Raimer, Allen Hightower and Allen Sapp, all  
              representing Correctional Managed Health Care Committee,  
              answered questions from the committee and gave a  
              presentation entitled, Health Care Cost Drivers. 
              Commissioner Jose Montemayor, representing the Commission  
              of Insurance, answered questions and gave two briefings  
              regarding medical malpractice, and the state of the HMO  
              Joe Cunningham, Karol Shepard and Teresa Waters, all  
              representing the Texas Medical Association,  gave a brief  
              presentation and answered questions from the committee. 
              John Simms, representing Trinity Medical Center, gave a  
              presentation entitled, The Rural Perspective. 
              Sally Jeffcoat, representing Texas Hospital Association,  
              briefed the committee on cost and revenue drivers of  
              Darren Whitehurst, representing Texas Hospital Association,  
              answered several questions from the committee. 
              Dr. Eugene Kolassa, an Associate Professor at the  
              University of Mississippi, Merrill Matthews Jr. Ph.D.,  
              Visiting Scholar at the Institute for Policy Innovation,  
              and Thomas Hardaway, were asked by PhRMA to provide oral  
              testimony.  The panel gave brief presentations and answered  
              questions from the committee. 
              Todd Kaufman, Director of State Government Relations,  
              representing Genentech expressed how the state's fiscal  
              problem effects patients and their healthcare. 
              Will Sanders, Vice-President of Account Management, Mark A.  
              Tripodi, both representing Heritage Information Systems,  
              gave an overview and answered questions from the committee. 
              Commissioner Don Gilbert, representing Health and Human  
              Services Commission, answered several questions from the  
              Bill Hammond, Executive Director, and Lara Laneri Keel,  
              both representing Texas Association of Business answered  
              questions from the committee. 
              Tom Blaise, representing Town and Country Food Stores,  
              present on behalf of Texas Association of Business,  
              answered questions concerning large businesses. 
              Tom Fitzsimmons, President of SEI Metal forms, also present  
              on behalf of Texas Association of Business, answered  
              questions concerning small businesses. 
              Dr. Gary Goldstein, CEO of Humana, representing Texas  
              Association of Health Plans, gave a presentation on the  
              state of health care coverage in Texas.  
         The following witnesses gave public testimony: 
              Andrew M. Homer, representing the Texas Public Employees  
              Gary Anderson, representing Texas Public Employees  
              Louis Siedlecki, representing Pervasive Disability. 
         There being no further business, at 5:15 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