By Alvarado                                     H.B. No. 1885

      75R6545 SAW-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to drug benefits available under certain health care

 1-3     programs administered by the Texas Department of Health.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter B, Chapter 32, Human Resources Code,

 1-6     is amended by adding Section 32.0311 to read as follows:

 1-7           Sec. 32.0311.  DRUG REIMBURSEMENT UNDER CERTAIN PROGRAMS.

 1-8     The department shall require a recipient of medical assistance to

 1-9     exhaust drug benefits available under the medical assistance

1-10     program before reimbursing the recipient, pharmacist, or other

1-11     health care provider for drugs purchased by or on behalf of the

1-12     recipient under the Kidney Health Care Program or the Chronically

1-13     Ill and Disabled Children's Services Program.

1-14           SECTION 2.  Subchapter B, Chapter 12, Health and Safety Code,

1-15     is amended by adding Section 12.020 to read as follows:

1-16           Sec. 12.020.  DRUG REBATES.  (a)  The department shall

1-17     develop a drug manufacturer rebate program for drugs purchased by

1-18     or on behalf of a client of the Kidney Health Care Program or the

1-19     Chronically Ill and Disabled Children's Services Program for which

1-20     rebates are not available under the Medicaid drug manufacturer

1-21     rebate program.

1-22           (b)  The department shall consult with drug manufacturers to

1-23     develop rebate amounts for the new rebate program.  The average

1-24     percentage savings from rebates in the new program may not be less

 2-1     than the average percentage savings from rebates in the Medicaid

 2-2     drug manufacturer rebate program.

 2-3           (c)  The department by rule may require all drug

 2-4     manufacturers to participate in the rebate program as a condition

 2-5     of reimbursement for the manufacturers' drugs under the Kidney

 2-6     Health Care Program and the Chronically Ill and Disabled Children's

 2-7     Services Program.

 2-8           SECTION 3.  (a)  To the extent authorized by federal law, the

 2-9     Texas Department of Health shall consolidate with the Medicaid

2-10     Vendor Drug Program the drug benefits components of the Kidney

2-11     Health Care Program and the Chronically Ill and Disabled Children's

2-12     Services Program.

2-13           (b)  Except as provided by Subsection (c) of this section,

2-14     the department shall use the Medicaid Vendor Drug Program's claims

2-15     processing and program monitoring procedures, pharmacy network, and

2-16     reimbursement rates for the consolidated program.

2-17           (c)  The department shall develop reimbursement rates for

2-18     drugs purchased by or on behalf of a client of the Kidney Health

2-19     Care Program or the Chronically Ill and Disabled Children's

2-20     Services Program that are not included in the Medicaid Vendor Drug

2-21     Program's list of reimbursable drugs.

2-22           (d)  The department shall obtain drug manufacturer rebates

2-23     for drugs purchased by or on behalf of a client of the Kidney

2-24     Health Care Program or the Chronically Ill and Disabled Children's

2-25     Services Program under the Medicaid drug manufacturer rebate

2-26     program and the drug rebate program developed under Section 12.020,

2-27     Health and Safety Code, as added by this Act.

 3-1           (e)  The department shall update its computer system to

 3-2     facilitate the consolidation.

 3-3           SECTION 4.  (a)  Not later than September 1, 1997, the Texas

 3-4     Department of Health shall complete the implementation of the drug

 3-5     manufacturer rebate program required by Section 12.020, Health and

 3-6     Safety Code, as added by this Act.

 3-7           (b)  Not later than March 1, 1999, the Texas Department of

 3-8     Health shall complete the implementation of the consolidated

 3-9     program required by Section 3 of this Act.

3-10           SECTION 5.  The importance of this legislation and the

3-11     crowded condition of the calendars in both houses create an

3-12     emergency and an imperative public necessity that the

3-13     constitutional rule requiring bills to be read on three several

3-14     days in each house be suspended, and this rule is hereby suspended,

3-15     and that this Act take effect and be in force from and after its

3-16     passage, and it is so enacted.