HBA-NRS S.B. 1152 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1152
By: Van de Putte
Public Health
5/18/2001
Engrossed



BACKGROUND AND PURPOSE 

Federal legislation is anticipated to authorize the granting of federal
money to assist states in providing prescription drug plans. Senate Bill
1152 establishes the Tex Rx plan to provide prescription drug benefits to
eligible individuals and outlines eligibility guidelines and enrollment
duties of the Texas Department of Health.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Board of Health in SECTION 1
(Sections 65.051, 65.058, and 65.102, Health and Safety Code) of this bill.

ANALYSIS

Senate Bill 1152 amends the Health and Safety Code to require the Texas
Department of Health (department) to develop and, subject to available
funds,  implement a Tex Rx plan (plan) providing prescription drug benefits
for eligible individuals. The bill requires the Texas Board of Health
(board) to make policy for the plan, including policy related to
eligibility for coverage under the plan and to prescription drug benefits
provided under the plan. The bill requires the board to adopt rules as
necessary to implement the plan and to consider any requirements imposed
under a federal program that provides federal matching money for
prescription drug benefits (Sec. 65.051).  

The bill authorizes the department to consolidate or coordinate the
administration of the plan with other similar programs (Sec. 65.052).
Unless prohibited by the federal program providing matching money for
prescription drug benefits, the bill requires the department to obtain
prescription drug manufacturer rebates for the benefit of enrollees in the
plan and authorizes money obtained from the rebates to be appropriated only
for the administration and operation of the plan (Sec. 65.053). The bill
authorizes the department to enter into contracts relating to the purchase
and distribution of prescription drugs under the plan. For contracts under
the plan, the bill requires the board to retain policy-making authority, to
procure contracts through a competitive procurement process, to monitor the
person with whom the department contracts, to require the person with whom
the department contracts to comply with provisions relating to pharmacies,
to monitor the quality of services delivered to enrollees, and to provide
payment under the contracts (Sec. 65.054). The bill sets forth provisions
for the administration of enrollment under the plan (Sec. 65.055). 

The bill authorizes the department to conduct a community outreach and
education campaign to provide information relating to the availability of
the plan (Sec. 65.056). The bill authorizes the board to appoint regional
advisory committees to provide recommendations on the implementation and
operation of the plan (Sec. 65.057). The bill requires the board to adopt
and implement rules for the prevention and detection of fraud in the plan.
The bill authorizes the exclusion of an individual who commits fraud from
the plan (Sec. 65.058).  

The bill provides that an individual is eligible to participate in the plan
if the individual is a resident of this state and is not eligible for
medical assistance under the state Medicaid program, is eligible to
participate  in the Medicare program, is not covered and has not been
covered by a Medicare supplement policy that provides benefits for
prescription drugs, and has a net family income that is at or below 200
percent of the federal poverty level (Sec. 65.101). The bill requires the
board by rule to authorize the enrollment of individuals who, at any time,
are covered by a Medicare supplement policy that provides prescription drug
benefits and who become unable to continue to pay premiums for the policy
or to pay applicable costsharing amounts (Sec. 65.102). The bill requires
the department to adopt an application form and application procedures for
requesting enrollment in the plan (Sec. 65.103). The bill requires the
department to develop eligibility screening and enrollment procedures for
the plan and provides that both screening and enrollment must be completed
not later than the 30th day after the date the individual submits a
complete application (Sec. 65.104). 

The bill requires the plan to provide benefits for prescription drug
benefits as required by any federal program that provides federal matching
money for prescription drug benefits. The bill authorizes the department to
consider the benefits provided under the Medicaid vendor drug program (Sec.
65.151). The bill authorizes the department to require an enrollee to pay a
copayment or similar charge for prescription drugs provided under the plan
(Sec. 65.152). The bill requires the department to determine the terms and
conditions with which a pharmacy must comply to participate in the plan
(Sec. 65.201). The bill requires the department to determine reimbursement
rates for participating pharmacies under the plan (Sec. 65.202). The bill
prohibits the department, and any person with whom the department
contracts, from varying the amount of an enrollee copayment or similar
charge based on the source from which the prescription drugs are dispensed
or the method of distribution of the prescription drugs (Sec. 65.203). The
bill requires the department, or any person with whom the department
contracts, to reimburse pharmacies for providing medication therapy
management services to patients (Sec. 65.204).  

The bill requires the department to develop a preliminary plan for the
implementation of the Tex Rx plan. The bill prohibits the department from
implementing the plan until state and federal matching money becomes
available. The bill requires the department to monitor federal legislation
authorizing the granting of federal money for similar plans and requires
the department to determine the actions required to implement the plan in
coordination with any federal legislation that is enacted. The bill
requires the department to report its determinations to the governor, the
lieutenant governor, the speaker of the house of representatives, the
Health and Human Services Commission, and the Legislative Budget Board
(SECTION 3). The bill provides that the plan does not establish an
entitlement to assistance in obtaining prescription drug benefits (Sec.
65.003). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.