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Senate Bill 704 |
Senate Author: Nelson |
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Effective: 9-1-09 |
House Sponsor: Kolkhorst |
Senate Bill 704 amends the Government Code to prescribe disclosure requirements for an interagency exchange of information relating to the amounts charged by a pharmacy benefit manager for services provided under a prescription drug program and other requested pricing information relating to a contract for those services. The bill amends the Insurance Code to require the Texas Department of Insurance (TDI) to conduct a study to evaluate the ways in which pharmacy benefit managers use prescription drug information to manage therapeutic drug interchange programs and other drug substitution recommendations made by pharmacy benefit managers or similar entities. The bill requires TDI to submit a report on the study to the governor, presiding officers of the legislature, and appropriate standing committees of the legislature not later than August 1, 2010.
Senate Bill 704 requires the Employees Retirement System of Texas (ERS) board of trustees, in awarding a contract to provide pharmacy benefit manager services, to select a contract that meets certain established criteria. The same requirements apply to contracts to provide pharmacy benefit manager services under the Texas Public School Retired Employees Group Benefits Act, Texas School Employees Uniform Group Health Coverage Act, and State University Employees Uniform Insurance Benefits Act. The bill sets out provisions relating to the delivery of prescription drugs by mail under plans administered by the Teacher Retirement System of Texas and ERS, including the use of a benchmark index in setting prescription drug reimbursement rates, and prohibits the ERS board of trustees or a health benefit plan from requiring a participant who orders a multiple-month supply of a drug from a retail pharmacy to pay any cost-sharing obligation that differs from the amount paid for the drug through mail order. Provisions relating to cost-sharing for a multiple-month supply of a prescription drug from a mail order program apply to a health benefit plan that is delivered, issued for delivery, or renewed on or after January 1, 2010.