By Alvarado H.B. No. 105 76R137 CLG-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 12.0125 to read as follows: 1-16 Sec. 12.0125. 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 2-27 12.0125, 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, 1999, the Texas 3-4 Department of Health shall complete the implementation of the drug 3-5 manufacturer rebate program required by Section 12.0125, Health and 3-6 Safety Code, as added by this Act. 3-7 (b) Not later than March 1, 2001, 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.