C.S.H.B. 1090 78(R)    BILL ANALYSIS


C.S.H.B. 1090
By: Miller
State Health Care Expenditures, Select
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Senior citizens rely heavily on prescription drugs, but more than a third
of them have no prescription drug insurance coverage.  In Texas, an
estimated 748,000 Medicare recipients, most over the age of 65, lack
prescription drug coverage.  C.S.H.B. 1090 would establish the Texas Cares
program through the Texas Department on Aging to provide information
regarding prescription drug discount programs and to enroll eligible
seniors in the appropriate programs. 

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Texas Department on Aging in SECTION 1  (Section 101.034,
Human Resources Code) of this bill. 

ANALYSIS

C.S.H.B. 1090 establishes the Texas Cares program through the Texas
Department on Aging to provide information and assistance to persons
eligible for discount prescription drug programs offered by pharmaceutical
companies.  The bill directs the department to provide information
regarding the programs and to assist in enrolling eligible individuals
when appropriate. 

The bill allows the Texas Cares program to solicit and accept grants,
gifts, and donations to fund the program.  It also directs the Texas Cares
program to maintain an Internet web site, a toll-free telephone number,
and written materials with information regarding the program. 

The bill allows the program to conduct community outreach and coordinate
operation of the program with area agencies on aging. 

EFFECTIVE DATE

This Act takes effect immediately if it receives a vote of two-thirds of
all the members of each house, as provided by Section 39, Article III,
Texas Constitution.  If the Act does not receive the necessary vote for
immediate effect, this Act takes effect September 1, 2003. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1090 directs the Department on Aging to utilize private discount
programs for prescription drugs to create the Texas Cares program.  Texas
Cares would not place limits on rates that could be charged for drugs, but
instead would work with pharmaceutical companies to increase enrollment on
existing pharmaceutical company discount programs. 

HB 1090 as filed would not have utilized existing private discount
programs, and would have instead limited what pharmacists could charge
Medicare recipients for prescription drugs to what the state pays for
those same drugs under the Vendor Drug Program.