MINUTES
SENATE COMMITTEE ON PROMPT PAYMENT OF HEALTH CARE PROVIDERS
Thursday, January 24, 2002
9:30 a.m.
Rice University
Houston, Texas
*****
Pursuant to a notice posted in accordance with Senate Rule
11.18, a public hearing of the Senate Committee on Prompt
Payment of Health Care Providers was held on Thursday, January
24, 2002, at Rice University in Houston, Texas.
*****
MEMBERS PRESENT: MEMBERS ABSENT:
Senator Jane Nelson Senator John Carona
Senator Troy Fraser Senator Judith Zaffirini
Senator Mario Gallegos, Jr.
*****
The Chair called the meeting to order at 9:30 a.m. and the
following business was transacted.
The Chair made opening remarks thanking Rice University for
hosting the hearing and announced that the purpose of this
hearing was to solicit and consider public testimony on the
interim charge assigned to the committee by Lieutenant Governor
Bill Ratliff: (1) to evaluate the effectiveness of existing
state law and agency rules designed to ensure prompt payment of
health insurance claims to providers by insurance companies; (2)
assess the level of industry compliance with current law and the
necessity of additional enforcement measures; and (3) to
determine the factors affecting the timeliness of reimbursements
and make necessary recommendations to improve the process.
The Chair recognized Senator Gallegos, who made welcoming
remarks.
The Chair welcomed Representatives Ken Yarborough, Kyle Janek,
Debra Danburg, and Craig Eiland to the hearing.
The Chair invited Jose Montemayor, Commissioner of the Texas
Department of Insurance, to address the Committee regarding the
status of the agency's consent orders relating to prompt payment
of health insurance claims, clean claims performance trends, and
the agency's survey of electronic filing readiness.
Commissioner Montemayor provided written and oral testimony and
responded to questions by members of the Committee.
At 10:15 a.m., a quorum was established.
Audrey Selden, Senior Associate Commissioner of the Texas
Department of Insurance, came forward to respond to questions by
members of the Committee.
At 10:46 a.m., Senator Gallegos moved that the minutes from the
organizational meeting be adopted. The minutes were adopted by
unanimous consent.
Commissioner Montemayor resumed his testimony.
There being no further questions for this witness, the Chair
invited Betty DeLargy, partner, Long Burner Parks McClellan &
DeLargy and General Counsel, Texas Health Insurance Risk Pool,
to explain the basic clean claims process to the Committee.
Betty DeLargy provided written and oral testimony and responded
to questions by members of the Committee.
There being no further questions for this witness, the Chair
invited Darren Rodgers, Executive Vice President, Blue Cross
Blue Shield of Texas and HMO Blue of Texas; Ron Vaughan, TENET
Healthsystems; Dr. Robert Vanzant, President, Harris County
Medical Society; and Jennifer Fix, R.Ph., Texas Pharmacy
Association, to discuss matters relating to the clean claims
process.
The invited witnesses provided written and oral testimony and
responded to questions by members of the Committee.
There being no further questions for these witnesses, the Chair
opened the hearing to public testimony.
Witnesses testifying and registering on the charge are shown on
the attached list.
There being no further business, at 4:07 p.m. Senator Nelson
moved that the Committee stand recessed subject to the call of
the Chair. Without objection, it was so ordered.
______________________
Senator Jane Nelson, Chair
______________________
Cheri Huddleston, Clerk