HBA-JEK S.B. 347 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 347
By: Brown, J. E. "Buster"
Corrections
3/4/2001
Engrossed



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.  Senate Bill 347 provides that a contract entered
into by the Correctional Managed Health Care Committee (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

Senate Bill 347 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 (TDCJ) 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 (TTUHSC) for the provision of health care
services.  The bill requires TTUHSC 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 TDCJ to
amend any existing contract for the implementation of the plan as necessary
to meet the requirements imposed on the contract by these provisions. 

S.B. 347 requires the Correctional Managed Health Care Committee
(committee) to include the allocation of money between UTMB and TTUHSC in
acting as an independent third party in the allocation of money to inmate
health care providers.  The bill also authorizes the committee to act as an
independent third party for the purpose of dispute resolution between UTMB
and TTUHSC in disagreements relating to inmate health care services. 

EFFECTIVE DATE

September 1, 2001.