By Maxey                                               H.B. No. 478
       74R2378 PB-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the adoption of a mail-order prescription drug benefit
    1-3  option under the uniform group insurance program for certain state
    1-4  employees.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  The Texas Employees Uniform Group Insurance
    1-7  Benefits Act (Article 3.50-2, Vernon's Texas Insurance Code) is
    1-8  amended by adding Section 5B to read as follows:
    1-9        Sec. 5B.  MAIL-ORDER OPTION FOR CERTAIN PRESCRIPTION DRUG
   1-10  BENEFITS.  (a)  In this section:
   1-11              (1)  "Chronic medical condition" includes:
   1-12                    (A)  arthritis;
   1-13                    (B)  hypertension;
   1-14                    (C)  cardiovascular disease;
   1-15                    (D)  diabetes;
   1-16                    (E)  cancer;
   1-17                    (F)  pulmonary disease;
   1-18                    (G)  digestive tract disease; or
   1-19                    (H)  another chronic, physically debilitating
   1-20  condition that requires the use of medication.
   1-21              (2)  "Maintenance drug" means a medication that is
   1-22  routinely prescribed on an ongoing basis for a chronic medical
   1-23  condition.
   1-24        (b)  In providing coverage for prescription drugs under a
    2-1  group health benefits plan, the trustee shall adopt a system that
    2-2  combines a mail-order option for maintenance drugs with a retail
    2-3  purchase option for those drugs.  The trustee by rule shall specify
    2-4  the maintenance drugs that may be obtained through the mail-order
    2-5  service.
    2-6        (c)  The trustee may not require an employee or dependent to
    2-7  use the mail-order option to obtain prescription drugs covered
    2-8  under the health benefits plan.
    2-9        (d)  The mail-order option must include the ability to order
   2-10  a 90-day supply of drugs prescribed by a physician at a cost to the
   2-11  employee or dependent lower than the cost charged for the same
   2-12  medications at a local retail outlet.
   2-13        (e)  A pharmacy licensed in this state may bid to provide the
   2-14  mail-order service.  A pharmacy located outside this state may
   2-15  participate in the bidding process if that pharmacy registers with
   2-16  the trustee and the Texas State Board of Pharmacy.  A bidding
   2-17  pharmacy must include verification satisfactory to the trustee of
   2-18  its ability to mail each prescription not later than 48 hours after
   2-19  the time that the pharmacy receives the prescription drug order
   2-20  request.  The trustee shall adopt rules relating to:
   2-21              (1)  eligibility requirements for pharmacies
   2-22  participating in the mail-order service under this section; and
   2-23              (2)  the bidding process under this subsection.
   2-24        (f)  The trustee shall monitor the savings to the state
   2-25  associated with the use of the mail-order service and shall report
   2-26  information related to the savings in the trustee's annual report
   2-27  to the commissioner under Section 7 of this article.
    3-1        SECTION 2.  The trustee of the Employees Retirement System of
    3-2  Texas shall adopt rules to implement Section 5B, Texas Employees
    3-3  Uniform Group Insurance Benefits Act (Article 3.50-2, Vernon's
    3-4  Texas Insurance Code), as added by this Act, not later than
    3-5  September 1, 1995.
    3-6        SECTION 3.  The importance of this legislation and the
    3-7  crowded condition of the calendars in both houses create an
    3-8  emergency and an imperative public necessity that the
    3-9  constitutional rule requiring bills to be read on three several
   3-10  days in each house be suspended, and this rule is hereby suspended,
   3-11  and that this Act take effect and be in force from and after its
   3-12  passage, and it is so enacted.