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.