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 voluntary drug manufacturer rebate program for drugs 1-18 purchased by or on behalf of a client of the Kidney Health Care 1-19 Program or the Chronically Ill and Disabled Children's Services 1-20 Program for which rebates are not available under the Medicaid drug 1-21 manufacturer rebate program. 1-22 (b) The department shall consult with drug manufacturers to 1-23 develop rebate amounts for the new voluntary rebate program. The 1-24 average percentage savings from rebates in the new program may not 2-1 be less than the average percentage savings from rebates in the 2-2 Medicaid drug manufacturer rebate program. 2-3 (c) Amounts received by the department under the drug rebate 2-4 program established under this section may be appropriated only for 2-5 the Kidney Health Care Program or the Chronically Ill and Disabled 2-6 Children's Services Program. 2-7 SECTION 3. (a) To the extent authorized by federal law, the 2-8 Texas Department of Health shall consolidate with the Medicaid 2-9 Vendor Drug Program the drug benefits components of the Kidney 2-10 Health Care Program and the Chronically Ill and Disabled Children's 2-11 Services Program. 2-12 (b) Except as provided by Subsection (c) of this section, 2-13 the department shall use the following functions and components of 2-14 the Medicaid Vendor Drug Program for the consolidated program: 2-15 (1) claims processing and program monitoring 2-16 procedures; 2-17 (2) prior authorization safeguards; 2-18 (3) dispute resolution procedures and approval 2-19 criteria; 2-20 (4) emergency access procedures; 2-21 (5) pharmacy network; and 2-22 (6) reimbursement rates. 2-23 (c) The department shall develop reimbursement rates for 2-24 drugs purchased by or on behalf of a client of the Kidney Health 2-25 Care Program or the Chronically Ill and Disabled Children's 2-26 Services Program that are not included in the Medicaid Vendor Drug 2-27 Program's list of reimbursable drugs. 3-1 (d) The department shall obtain drug manufacturer rebates 3-2 for drugs purchased by or on behalf of a client of the Kidney 3-3 Health Care Program or the Chronically Ill and Disabled Children's 3-4 Services Program under the Medicaid drug manufacturer rebate 3-5 program and the voluntary drug rebate program developed under 3-6 Section 12.0125, Health and Safety Code, as added by this Act. 3-7 (e) The department shall update its computer system to 3-8 facilitate the consolidation. 3-9 SECTION 4. (a) Not later than September 1, 1999, the Texas 3-10 Department of Health shall complete the implementation of the 3-11 voluntary drug manufacturer rebate program required by Section 3-12 12.0125, Health and Safety Code, as added by this Act. 3-13 (b) Not later than March 1, 2001, the Texas Department of 3-14 Health shall complete the implementation of the consolidated 3-15 program required by Section 3 of this Act. 3-16 SECTION 5. The importance of this legislation and the 3-17 crowded condition of the calendars in both houses create an 3-18 emergency and an imperative public necessity that the 3-19 constitutional rule requiring bills to be read on three several 3-20 days in each house be suspended, and this rule is hereby suspended, 3-21 and that this Act take effect and be in force from and after its 3-22 passage, and it is so enacted. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 494 was passed by the House on May 4, 1999, by the following vote: Yeas 144, Nays 0, 2 present, not voting; and that the House concurred in Senate amendments to H.B. No. 494 on May 20, 1999, by the following vote: Yeas 145, Nays 0, 1 present, not voting. _______________________________ Chief Clerk of the House I certify that H.B. No. 494 was passed by the Senate, with amendments, on May 18, 1999, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor