HBA-DMH, MPM H.B. 416 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 416
By: Maxey
Public Health
2/8/2001
Introduced



BACKGROUND AND PURPOSE 

Because of variations in pricing of prescription drugs across the
distribution chain, the Texas Department of Health (TDH) encounters
difficulty in determining whether it is receiving the lowest purchase price
for the Medicaid Vendor Drug Program.  House Bill 416 requires Texas
wholesale drug distributors to provide TDH with the purchase price that
distributors pay for the drugs. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 416 amends the Health and Safety Code to require a wholesale
distributor of drugs in Texas to file information with the Texas Department
of Health (TDH) on an annual basis showing the purchase price the
distributor pays for the drugs sold in this state.  The bill authorizes TDH
and the attorney general to investigate the distributor to determine the
accuracy of the information the distributor provides to TDH. 

EFFECTIVE DATE

September 1, 2001.