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.