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


Senate Research Center   S.B. 1585
76R7341  CLG-DBy: Zaffirini
Human Services
4/1/1999
As Filed


DIGEST 

Currently, the Texas Department of Health (TDH) spends about 10.6 cents for
each transaction related to pharmaceutical claims processing.  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 proposed, 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) 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 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 than having TDH employees process claims.
Requires TDH, in conjunction with the State Council on Competitive
Government, to evaluate components of the vendor drug program that could
become more effective through competitive bidding. 

SECTION 2. Effective date:  September 1, 1999.

SECTION 3.  Emergency clause.