SRC-AXB S.B. 1585 76(R)BILL ANALYSIS


Senate Research CenterS.B. 1585
By: Zaffirini
Human Services
6/28/1999
Enrolled


DIGEST 

Currently, the Texas Department of Health (TDH) spends about 10.6 cents for
each transaction related to the processing of pharmaceutical claims.  By
outsourcing the processing of Medicaid prescription drugs, California is
able to spend 9 cents per claim.  In 1993, TDH reviewed its claims
processing arrangement; however, a competitive bid process has never been
initiated.  S.B. 1585 requires TDH,  with other governmental bodies, to
utilize a competitive bidding process for claims processing functions of
the vendor drug program. 

PURPOSE

As enrolled, S.B. 1585 requires the Texas Department of Health, with other
governmental bodies, to utilize a competitive bidding process for the
vendor drug program. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 32B, Human Resources Code, by adding Section
32.0461, as follows: 
 
Sec.  32.0461.  VENDOR DRUG PROGRAM; COMPETITIVE BIDDING.  Requires the
Texas Department of Health (TDH), in consultation and coordination with the
State Council on Competitive Goverment, to seek competitive bids for the
claims processing function of the vendor drug program.  Authorizes TDH and
the Texas Department of Human Services to submit a bid proposal in the same
manner as a private entity.  Requires TDH to require compliance with
competitive bidding procedures.  Authorizes TDH to award a contract to
another person if it would be more cost-effective and the time to process
claims under the contract would be the same as or faster than having TDH
employees process claims.  

SECTION 2. Effective date:  September 1, 1999.

SECTION 3.  Emergency clause.