By Duncan                                              S.B. No. 556
         77R5279 KKA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to prices of prescription drugs provided to Medicare
 1-3     recipients by pharmacies participating in the Medicaid vendor drug
 1-4     program.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Subchapter B, Chapter 32, Human Resources Code, is
 1-7     amended by adding Section 32.0462 to read as follows:
 1-8           Sec. 32.0462.  VENDOR DRUG PROGRAM; PARTICIPATION
 1-9     REQUIREMENT. (a)  A provider in the vendor drug program, as a
1-10     condition of participation in the program, must provide any
1-11     prescription drug available to a recipient of medical assistance
1-12     under the program to a Medicare recipient at a price not greater
1-13     than the sum of:
1-14                 (1)  the amount of reimbursement the provider would
1-15     have received under the program for providing the drug to a
1-16     recipient of medical assistance; and
1-17                 (2)  an administrative fee in an amount determined by
1-18     the department, not to exceed 15 cents.
1-19           (b)  To receive the price required by this section from a
1-20     provider, a Medicare recipient must:
1-21                 (1)  provide a prescription for the drug that names the
1-22     recipient; and
1-23                 (2)  present the recipient's Medicare card.
1-24           (c)  The department shall ensure that information concerning
 2-1     prices that may be charged under this section is readily available
 2-2     to providers participating in the vendor drug program.
 2-3           (d)  The department shall:
 2-4                 (1)  monitor provider compliance with this section; and
 2-5                 (2)  evaluate the effect of the requirements imposed by
 2-6     this section on the availability of prescription drugs to
 2-7     recipients of Medicare and medical assistance, including whether
 2-8     the number of providers under the vendor drug program declines as a
 2-9     result of the requirements.
2-10           (e)  Not later than January 1 of each year, the department
2-11     shall submit a report to the legislature containing the information
2-12     obtained and developed by the department under Subsection (d).
2-13           SECTION 2. If before implementing any provision of this Act a
2-14     state agency determines that a waiver or authorization from a
2-15     federal agency is necessary for implementation of that provision,
2-16     the agency affected by the provision shall request the waiver or
2-17     authorization and may delay implementing that provision until the
2-18     waiver or authorization is granted.
2-19           SECTION 3. This Act takes effect September 1, 2001.