HBA-JEK S.B. 347 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 347 By: Brown, J. E. "Buster" Corrections 3/4/2001 Engrossed BACKGROUND AND PURPOSE The University of Texas Medical Branch at Galveston (UTMB) purchases pharmaceutical drugs for the Texas prison system through a drug consortium. While this reduces costs, even lower prices are available through the federal 340B drug pricing program, a program that enables certain entities that typically serve a disproportionate number of uninsured and underinsured people to purchase certain drugs from drug manufacturers at greatly reduced prices. Senate Bill 347 provides that a contract entered into by the Correctional Managed Health Care Committee (committee) on behalf of the Texas Department of Criminal Justice must ensure that UTMB is eligible for and makes reasonable efforts to participate in the purchase of prescription drugs through the federal 340B program. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 347 amends the Government Code to provide that a contract entered into by the Correctional Managed Health Care Committee (committee) on behalf of the Texas Department of Criminal Justice (TDCJ) to fully implement a managed health care plan (plan) must ensure that The University of Texas Medical Branch at Galveston (UTMB) is eligible for and makes reasonable efforts to participate in the purchase of prescription drugs under the federal Public Health Service Act. The bill provides that such a contract must authorize UTMB to contract directly with The Texas Tech University Health Science Center (TTUHSC) for the provision of health care services. The bill requires TTUHSC to cooperate with UTMB in its efforts to participate in the purchase of prescription drugs under the federal Public Health Service Act. The bill requires the committee and TDCJ to amend any existing contract for the implementation of the plan as necessary to meet the requirements imposed on the contract by these provisions. S.B. 347 requires the Correctional Managed Health Care Committee (committee) to include the allocation of money between UTMB and TTUHSC in acting as an independent third party in the allocation of money to inmate health care providers. The bill also authorizes the committee to act as an independent third party for the purpose of dispute resolution between UTMB and TTUHSC in disagreements relating to inmate health care services. EFFECTIVE DATE September 1, 2001.