SRC-PNG S.B. 1237 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1237
76R7198 DLF-FBy: Nelson
Economic Development
3/26/1999
As Filed


DIGEST 

Currently, under Texas law, insurers are not required to include
standardized information on enrollees' pharmacy identification cards.  This
bill would require health benefit plans to provide uniform pharmacy
identification cards for each enrollee, to include certain standardized
information. 

PURPOSE

As proposed, S.B. 1237 requires health benefit plans to provide uniform
pharmacy identification cards for each enrollee which includes certain
standardized information. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the insurance commissioner in SECTION 2
(Section 19A(b), Article 21.07-6, Insurance Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1(1), Article 21.07-6, Insurance Code, to
redefine "administrator." 

SECTION 2. Amends Article 21.07-6, Insurance Code, by adding Section 19A,
as follows: 

Sec.  19A.  IDENTIFICATION CARDS FOR CERTAIN PLANS.  Requires an
administrator for a plan that provides pharmacy benefits to issue an
identification card to each individual covered by the plan.  Requires the
insurance commissioner (commissioner) by rule to adopt a standard form for
the identification card.  Requires the standard form to include certain
information.   

SECTION 3. Amends Section 24, Article 21.07-6, Insurance Code, as follows:

Sec.  24.  New heading: APPLICATION TO CERTAIN INSURERS AND HEALTH
MAINTENANCE ORGANIZATIONS; APPLICATION TO PHARMACY BENEFIT MANAGEMENT.
Requires an insurer or health maintenance organization (HMO), and any
subsidiary, division, affiliate, or agent of the insurer or HMO, that acts
as an administrator with respect to pharmacy benefits to comply with this
article.  Provides that the exemptions granted to an insurer or HMO under
Section 1(1) (C) or (D) of this article do not apply to the extent the
insurer or HMO, or any subsidiary, division, affiliate, or agent of the
insurer or HMO, acts as an administrator with respect to pharmacy benefits. 

SECTION 4. Effective date: September 1, 1999.

SECTION 5. (a) Makes application of this Act prospective, with regard to a
person acting as an administrator, with respect to pharmacy benefits on or
after January 1, 2000.  (b) Provides that an administrator is not required
to provide an identification card to an individual, as required, before
January 1, 2000. 

SECTION 6. Emergency clause.