Bill not drafted by TLC or Senate E&E.

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      By Van de Putte                                 H.B. No. 3175

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to policies of insurance providing pharmaceutical

 1-3     services.

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

 1-5           SECTION 1.  Article 21.52B, Texas Insurance Code, is amended

 1-6     as follows:

 1-7                    Art. 21.52B.  Pharmaceutical Services

 1-8           Sec. 1.  DEFINITIONS.  In this article:

 1-9                 (1)  "Health insurance policy" means an individual,

1-10     group, blanket, or franchise insurance policy, insurance policy or

1-11     agreement, or group hospital service contract that provides

1-12     benefits for pharmaceutical services that are necessary as a result

1-13     of or to prevent an accident or sickness. [but does not include

1-14     evidence of coverage provided by a health maintenance organization

1-15     under the Texas Health Maintenance Organization Act (Chapter 20A,

1-16     Vernon's Texas Insurance Code).]

1-17                 (2)  "Pharmaceutical services" means services,

1-18     including dispensing prescription drugs, that are ordinarily and

1-19     customarily rendered by a pharmacy or pharmacist licensed to

1-20     practice pharmacy under the Texas Pharmacy Act (Article 4542a-1,

1-21     Vernon's Texas Civil Statutes).

1-22                 (3)  "Pharmacist" means a person licensed to practice

1-23     pharmacy under the Texas Pharmacy Act (Article 4542a-1, Vernon's

1-24     Texas Civil Statutes).

 2-1                 (4)  "Pharmacy" means a facility licensed as a pharmacy

 2-2     under the Texas Pharmacy Act (Article 4542a-1, Vernon's Texas Civil

 2-3     Statutes).

 2-4                 (5)  "Drugs" and "prescription drugs" have the meanings

 2-5     assigned by Section 5, Texas Pharmacy Act (Article 4542-1, Vernon's

 2-6     Texas Civil Statutes).

 2-7                 [(6)  "Managed care plan" means a health maintenance

 2-8     organization, a preferred-provider organization, or another

 2-9     organization that, under a contract or other agreement entered into

2-10     with a participant in the plan:]

2-11                       [(A)  provides health care benefits, or arranges

2-12     for health care benefits to be provided, to a participant in the

2-13     plan; and]

2-14                       [(B)  requires or encourages those participants

2-15     to sue health care providers designated by the plan.]

2-16           Sec. 2.  (a)  A health insurance policy [or managed care

2-17     plan] that is delivered, issued for delivery, or renewed or for

2-18     which a contract or other agreement is executed may not:

2-19                 (1)  prohibit or limit a person who is a beneficiary of

2-20     the policy from selecting a pharmacy or pharmacist of the person's

2-21     choice to be a provider under the policy to furnish pharmaceutical

2-22     services offered or provided by that policy or interfere with that

2-23     person's selection of a pharmacy or pharmacist;

2-24                 (2)  deny a pharmacy or pharmacist the right to

2-25     participate as a contract provider under the policy [or plan] if

2-26     the pharmacy or pharmacist agrees to provide pharmaceutical

2-27     services that meet all terms and requirements and to include the

2-28     same administrative, financial, and professional conditions that

2-29     apply to pharmacies and pharmacists who have been designated as

2-30     providers under the policy [or plan]; or

 3-1                 (3)  require a beneficiary of a policy [or a

 3-2     participant in a plan] to obtain or request a specific quantity or

 3-3     dosage supply of pharmaceutical products.

 3-4           (b)  Notwithstanding Subsection (a)(3) of this section, a

 3-5     health insurance policy [or managed care plan] may allow the

 3-6     physician of a beneficiary [or participant] to prescribe drugs in a

 3-7     quantity or dosage supply the physician determines appropriate and

 3-8     that is in compliance with state and federal statutes.

 3-9           (c)  This section does not prohibit:

3-10                 (1)  a provision of a policy [or plan] from limiting

3-11     the quantity or dosage supply of pharmaceutical products for which

3-12     coverage is provided or providing financial incentives to encourage

3-13     the beneficiary or participant and the prescribing physician to use

3-14     a program that provides pharmaceutical products in quantities that

3-15     result in cost savings to the insurance program [or managed care

3-16     plan] and the beneficiary [or participant] if the provision applied

3-17     equally to all designated providers of pharmaceutical services

3-18     under the policy; [or plan;]

3-19                 (2)  a pharmacy card program that provides a means of

3-20     obtaining pharmaceutical services offered by the policy [or plan]

3-21     through all designated providers of pharmaceutical services; or

3-22                 (3)  a policy [plan] from establishing reasonable

3-23     application and recertification fees for a pharmacy which provides

3-24     pharmaceutical services as a [contract] provider under the [plan]

3-25     policy, provided that such fees are uniformly charged to each

3-26     pharmacy under the policy [contract to the plan].

3-27           Sec. 3.  PROVISION VOID.  A provision of a health insurance

3-28     policy [or managed care plan] that is delivered, issued for

3-29     delivery, entered into, or renewed in this state that conflicts

3-30     with Section 2 of this article is void to the extent of the

 4-1     conflict.

 4-2           Sec. 4.  CONSTRUCTION OF ARTICLE.  This article does not

 4-3     require a health insurance policy [or managed care plan] to provide

 4-4     pharmaceutical services.

 4-5           Sec. 5.  APPLICATION OF PROHIBITION.  The provisions of

 4-6     Section 2 of this article do not apply to a self-insured employee

 4-7     benefit plan that is subject to the Employee Retirement Income

 4-8     Security Act of 1974 (29 U.S.C. Section 1001, et seq.).

 4-9           SECTION 2.  The importance of this legislation and the

4-10     crowded condition of the calendars in both houses create an

4-11     emergency and an imperative public necessity that the

4-12     constitutional rule requiring bills to be read on three several

4-13     days in each house be suspended, and this rule is hereby suspended.