Texas 2011 82nd Regular

Texas Senate Bill SB293 Comm Sub / Bill

                    82R20404 EES-F
 By: Watson, et al. S.B. No. 293
 (J. Davis of Harris)
 Substitute the following for S.B. No. 293:  No.


 A BILL TO BE ENTITLED
 AN ACT
 relating to telemedicine medical services, telehealth services,
 and home telemonitoring services provided to certain Medicaid
 recipients.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 531.001, Government Code, is amended by
 adding Subdivisions (4-a), (7), and (8) to read as follows:
 (4-a)  "Home telemonitoring service" means a health
 service that requires scheduled remote monitoring of data related
 to a patient's health and transmission of the data to a licensed
 home health agency as defined by Section 531.02164(a).
 (7)  "Telehealth service" means a health service, other
 than a telemedicine medical service, that is delivered by a
 licensed or certified health professional acting within the scope
 of the health professional's license or certification who does not
 perform a telemedicine medical service and that requires the use of
 advanced telecommunications technology, other than telephone or
 facsimile technology, including:
 (A)  compressed digital interactive video, audio,
 or data transmission;
 (B)  clinical data transmission using computer
 imaging by way of still-image capture and store and forward; and
 (C)  other technology that facilitates access to
 health care services or medical specialty expertise.
 (8)  "Telemedicine medical service" means a health care
 service that is initiated by a physician or provided by a health
 professional acting under physician delegation and supervision,
 that is provided for purposes of patient assessment by a health
 professional, diagnosis or consultation by a physician, or
 treatment, or for the transfer of medical data, and that requires
 the use of advanced telecommunications technology, other than
 telephone or facsimile technology, including:
 (A)  compressed digital interactive video, audio,
 or data transmission;
 (B)  clinical data transmission using computer
 imaging by way of still-image capture and store and forward; and
 (C)  other technology that facilitates access to
 health care services or medical specialty expertise.
 SECTION 2.  Section 531.0216, Government Code, is amended to
 read as follows:
 Sec. 531.0216.  PARTICIPATION AND REIMBURSEMENT OF
 TELEMEDICINE MEDICAL SERVICE PROVIDERS AND TELEHEALTH SERVICE
 PROVIDERS UNDER MEDICAID.  (a)  The commission by rule shall
 develop and implement a system to reimburse providers of services
 under the state Medicaid program for services performed using
 telemedicine medical services or telehealth services.
 (b)  In developing the system, the executive commissioner by
 rule shall:
 (1)  review programs and pilot projects in other states
 to determine the most effective method for reimbursement;
 (2)  establish billing codes and a fee schedule for
 services;
 (3)  provide for an approval process before a provider
 can receive reimbursement for services;
 (4)  consult with the Department of State Health
 Services and the telemedicine and telehealth advisory committee to
 establish procedures to:
 (A)  identify clinical evidence supporting
 delivery of health care services using a telecommunications system;
 (B)  establish pilot studies for telemedicine
 medical service delivery and telehealth service delivery; and
 (C)  annually review health care services,
 considering new clinical findings, to determine whether
 reimbursement for particular services should be denied or
 authorized;
 (5)  establish pilot programs in designated areas of
 this state under which the commission, in administering
 government-funded health programs, may reimburse a health
 professional participating in the pilot program for telehealth
 services authorized under the licensing law applicable to the
 health professional;
 (6)  establish a separate provider identifier for
 telemedicine medical services providers, telehealth services
 providers, and home telemonitoring services providers; and
 (7)  establish a separate modifier for telemedicine
 medical services, telehealth services, and home telemonitoring
 services eligible for reimbursement.
 (c)  The commission shall encourage health care providers
 and health care facilities to participate as telemedicine medical
 service providers or telehealth service providers in the health
 care delivery system.  The commission may not require that a
 service be provided to a patient through telemedicine medical
 services or telehealth services when the service can reasonably be
 provided by a physician through a face-to-face consultation with
 the patient in the community in which the patient resides or
 works.  This subsection does not prohibit the authorization of the
 provision of any service to a patient through telemedicine medical
 services or telehealth services at the patient's request.
 (d)  Subject to Section 153.004, Occupations Code, the
 commission may adopt rules as necessary to implement this
 section.  In the rules adopted under this section, the commission
 shall:
 (1)  refer to the site where the patient is physically
 located as the patient site; and
 (2)  refer to the site where the physician or health
 professional providing the telemedicine medical service or
 telehealth service is physically located as the distant site.
 (e)  The commission may not reimburse a health care facility
 for telemedicine medical services or telehealth services provided
 to a Medicaid recipient unless the facility complies with the
 minimum standards adopted under Section 531.02161.
 (f)  Not later than December 1 of each even-numbered year,
 the commission shall report to the speaker of the house of
 representatives and the lieutenant governor on the effects of
 telemedicine medical services, telehealth services, and home
 telemonitoring services on the Medicaid program in the state,
 including the number of physicians, [and] health professionals, and
 licensed health care facilities using telemedicine medical
 services, telehealth services, or home telemonitoring services,
 the geographic and demographic disposition of the physicians and
 health professionals, the number of patients receiving
 telemedicine medical services, telehealth services, and home
 telemonitoring services, the types of services being provided, and
 the cost of utilization of telemedicine medical services,
 telehealth services, and home telemonitoring services to the
 program.
 [(g)  In this section:
 [(1)     "Telehealth service"   has the meaning assigned by
 Section 57.042, Utilities Code.
 [(2)     "Telemedicine medical service"   has the meaning
 assigned by Section 57.042, Utilities Code.]
 SECTION 3.  The heading to Section 531.02161, Government
 Code, is amended to read as follows:
 Sec. 531.02161.  TELEMEDICINE, TELEHEALTH, AND HOME
 TELEMONITORING TECHNOLOGY STANDARDS.
 SECTION 4.  Section 531.02161(b), Government Code, is
 amended to read as follows:
 (b)  The commission and the Telecommunications
 Infrastructure Fund Board by joint rule shall establish and adopt
 minimum standards for an operating system used in the provision of
 telemedicine medical services, telehealth services, or home
 telemonitoring services by a health care facility participating in
 the state Medicaid program, including standards for electronic
 transmission, software, and hardware.
 SECTION 5.  Subchapter B, Chapter 531, Government Code, is
 amended by adding Section 531.02164 to read as follows:
 Sec. 531.02164.  MEDICAID SERVICES PROVIDED THROUGH HOME
 TELEMONITORING SERVICES. (a)  In this section, "home health
 agency" means a facility licensed under Chapter 142, Health and
 Safety Code, to provide home health services as defined by Section
 142.001, Health and Safety Code.
 (b)  If the commission determines that establishing a
 statewide program that permits reimbursement under the state
 Medicaid program for home telemonitoring services would be
 cost-effective and feasible, the executive commissioner by rule
 shall establish the program as provided under this section.
 (c)  A program established under this section must:
 (1)  provide that home telemonitoring services are
 available only to persons who are diagnosed with one or more
 conditions described by Section 531.02171(c)(4) and who exhibit two
 or more of the following risk factors:
 (A)  two or more hospitalizations in the prior
 12-month period;
 (B)  frequent or recurrent emergency room
 admissions;
 (C)  a documented history of poor adherence to
 ordered medication regimens;
 (D)  a documented history of falls in the prior
 six-month period;
 (E)  limited or absent informal support systems;
 (F)  living alone or being home alone for extended
 periods of time; and
 (G)  a documented history of care access
 challenges;
 (2)  ensure that clinical information gathered by a
 home health agency while providing home telemonitoring services is
 shared with the patient's physician; and
 (3)  ensure that the program does not duplicate disease
 management program services provided under Section 32.057, Human
 Resources Code.
 (d)  If, after implementation, the commission determines
 that the program established under this section is not
 cost-effective, the commission may discontinue the program and stop
 providing reimbursement under the state Medicaid program for home
 telemonitoring services, notwithstanding Section 531.0216 or any
 other law.
 (e)  The commission shall determine whether the provision of
 home telemonitoring services to persons who are eligible to receive
 benefits under both the Medicaid and Medicare programs achieves
 cost savings for the Medicare program.  If the commission
 determines that the provision of home telemonitoring services
 achieves cost savings for the Medicare program, the commission
 shall pursue the creation of accountable care organizations to
 participate in the Medicare shared savings program in accordance
 with 42 U.S.C. Section 1395jjj.
 SECTION 6.  The heading to Section 531.02171, Government
 Code, as added by Chapter 661 (H.B. 2700), Acts of the 77th
 Legislature, Regular Session, 2001, is amended to read as follows:
 Sec. 531.02171.  TELEMEDICINE MEDICAL SERVICES AND
 TELEHEALTH SERVICES PILOT PROGRAMS.
 SECTION 7.  Section 531.02171(c), Government Code, as added
 by Chapter 661 (H.B. 2700), Acts of the 77th Legislature, Regular
 Session, 2001, is amended to read as follows:
 (c)  In developing and operating a pilot program under this
 section, the commission shall:
 (1)  solicit and obtain support for the program from
 local officials and the medical community;
 (2)  focus on enhancing health outcomes in the area
 served by the pilot program through increased access to medical or
 health care services, including:
 (A)  health screenings;
 (B)  prenatal care;
 (C)  medical or surgical follow-up visits;
 (D)  periodic consultation with specialists
 regarding chronic disorders;
 (E)  triage and pretransfer arrangements; [and]
 (F)  transmission of diagnostic images or data;
 and
 (G)  monitoring of chronic conditions;
 (3)  establish quantifiable measures and expected
 health outcomes for each authorized telemedicine medical service or
 telehealth service;
 (4)  consider condition-specific applications of
 telemedicine medical services or telehealth services, including
 applications for:
 (A)  pregnancy;
 (B)  diabetes;
 (C)  heart disease; [and]
 (D)  cancer;
 (E)  chronic obstructive pulmonary disease;
 (F)  hypertension; and
 (G)  congestive heart failure; and
 (5)  demonstrate that the provision of services
 authorized as telemedicine medical services or telehealth services
 will not adversely affect the provision of traditional medical
 services or other health care services within the area served by the
 pilot program.
 SECTION 8.  The heading to Section 531.02172, Government
 Code, is amended to read as follows:
 Sec. 531.02172.  TELEMEDICINE AND TELEHEALTH ADVISORY
 COMMITTEE.
 SECTION 9.  Section 531.02172(b), Government Code, is
 amended to read as follows:
 (b)  The advisory committee must include:
 (1)  representatives of health and human services
 agencies and other state agencies concerned with the use of
 telemedical and telehealth consultations and home telemonitoring
 services in the Medicaid program and the state child health plan
 program, including representatives of:
 (A)  the commission;
 (B)  the Department of State Health Services;
 (C)  the Texas Department of Rural Affairs;
 (D)  the Texas Department of Insurance;
 (E)  the Texas Medical Board;
 (F)  the Texas Board of Nursing; and
 (G)  the Texas State Board of Pharmacy;
 (2)  representatives of health science centers in this
 state;
 (3)  experts on telemedicine, telemedical
 consultation, and telemedicine medical services or telehealth
 services; [and]
 (4)  representatives of consumers of health services
 provided through telemedical consultations and telemedicine
 medical services or telehealth services; and
 (5)  representatives of providers of telemedicine
 medical services, telehealth services, and home telemonitoring
 services.
 SECTION 10.  Section 531.02173(c), Government Code, is
 amended to read as follows:
 (c)  The commission shall perform its duties under this
 section with assistance from the telemedicine and telehealth
 advisory committee established under Section 531.02172.
 SECTION 11.  The following provisions of the Government Code
 are repealed:
 (1)  Section 531.02161(a);
 (2)  Sections 531.0217(a)(3) and (4);
 (3)  Sections 531.02171(a)(3) and (4), as added by
 Chapter 661 (H.B. 2700), Acts of the 77th Legislature, Regular
 Session, 2001; and
 (4)  Section 531.02171, as added by Chapter 959 (S.B.
 1536), Acts of the 77th Legislature, Regular Session, 2001.
 SECTION 12.  Not later than December 31, 2012, the Health and
 Human Services Commission shall submit a report to the governor,
 the lieutenant governor, and the speaker of the house of
 representatives regarding the establishment and implementation of
 the program to permit reimbursement under the state Medicaid
 program for home telemonitoring services under Section 531.02164,
 Government Code, as added by this Act.  The report must include:
 (1)  the methods used by the commission to determine
 whether the program was cost-effective and feasible; and
 (2)  if the program has been established, information
 regarding:
 (A)  the utilization of home telemonitoring
 services by Medicaid recipients under the program;
 (B)  the health outcomes of Medicaid recipients
 who receive home telemonitoring services under the program;
 (C)  the hospital admission rate of Medicaid
 recipients who receive home telemonitoring services under the
 program;
 (D)  the cost of the home telemonitoring services
 provided under the program; and
 (E)  the estimated cost savings to the state as a
 result of the program.
 SECTION 13.  If before implementing any provision of this
 Act a state agency determines that a waiver or authorization from a
 federal agency is necessary for implementation of that provision,
 the agency affected by the provision shall request the waiver or
 authorization and may delay implementing that provision until the
 waiver or authorization is granted.
 SECTION 14.  This Act takes effect September 1, 2011.