SRC-JEC S.B. 556 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 556
77R5279 KKA-DBy: Duncan
Health & Human Services
2/15/2001
As Filed


DIGEST AND PURPOSE 

Currently, more than a third of Texas' Medicare recipients (primarily
elderly people) are not covered under any prescription drug plan.  Some
are, but the coverage is inadequate.  Those without prescription drug
coverage pay retail prices for prescriptions, which can be financially
burdensome.  As proposed, S.B. 556 authorizes Medicare recipients to
purchase pharmaceutical drugs at the lower Medicaid price.  Pharmacies that
opt to participate in the state's Medicaid program are required to sell
Medicare recipients' drugs at the Medicaid price.  The Texas Department of
Health is required to monitor compliance with these requirements and to
evaluate their effect on the availability of prescription drugs to Medicaid
and Medicare recipients. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 32B, Human Resources Code, to add Section
32.0462, as follows: 

Sec. 34.0462.  VENDOR DRUG PROGRAM; PARTICIPATION REQUIREMENT.  (a)
Requires a drug provider in the vendor drug program, as a condition of
participation, to provide any prescription drug available to a recipient of
medical assistance under the program to a Medicare recipient at a certain
price.   

(b)  Sets forth requirements for a Medicare recipient to receive the price
required by this section from a provider.   

(c)  Requires the Health and Human Services Commission or an agency
operating part of the Medical assistance program, as appropriate
(department), to ensure that information concerning prices that may be
charged under this section is readily available to providers participating
in the vendor drug program. 

(d)  Requires the department to monitor provider compliance with this
section and evaluate the effect of the requirements imposed by this section
on the availability of prescription drugs to recipients of Medicare and
medical assistance, including whether the number of providers under the
vendor drug program declines as a result of the requirements.   

(e)  Requires the department, not later than January 1, of each year, to
submit a report to the legislature containing the information obtained and
developed by the department under Subsection (d). 

SECTION 2.  Requires a state agency affected by a provision of this Act, if
before implementing the provision it determines that a waiver or
authorization from a federal agency is necessary for  implementation of
that provision, to request the waiver or authorization.  Authorizes the
agency to delay implementing that provision until the waiver or
authorization is granted. 

SECTION 3.  Effective date: September 1, 2001.