HBA-JEK, TBM H.B. 773 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 773 By: Haggerty Corrections 2/25/2001 Introduced BACKGROUND AND PURPOSE The University of Texas Medical Branch at Galveston (UTMB) purchases pharmaceutical drugs for the Texas prison system through a drug consortium. While this reduces costs, even lower prices are available through the federal 340B drug pricing program, a program that enables certain entities that typically serve a disproportionate number of uninsured and underinsured people to purchase certain drugs from drug manufacturers at greatly reduced prices. House Bill 773 provides that a contract entered into by the Correctional Managed Health Care Committee on behalf of the Texas Department of Criminal Justice must ensure that UTMB is eligible for and makes reasonable efforts to participate in the purchase of prescription drugs through the federal 340B program. 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 773 amends the Government Code to provide that a contract entered into by the Correctional Managed Health Care Committee (committee) on behalf of the Texas Department of Criminal Justice to fully implement a managed health care plan (plan) must ensure that The University of Texas Medical Branch at Galveston (UTMB) is eligible for and makes reasonable efforts to participate in the purchase of prescription drugs under the federal Public Health Service Act. The bill provides that such a contract must authorize UTMB to contract directly with the Texas Tech University Health Science Center for the provision of health care services. The bill requires the Texas Tech University Health Science Center to cooperate with UTMB in its efforts to participate in the purchase of prescription drugs under the federal Public Health Service Act. The bill requires the committee and the Texas Department of Criminal Justice to amend any existing contract for the implementation of the plan as necessary to meet the requirements imposed on the contract by these provisions. EFFECTIVE DATE September 1, 2001.