SRC-LBB C.S.H.B. 1268 78(R)    BILL ANALYSIS


Senate Research CenterH.B. 1268
By: Seaman (Carona)
State Affairs
5-16-2003
Engrossed

DIGEST AND PURPOSE 

Under current law, persons over the age of 65 qualify for Medicare and can
purchase additional policies to supplement Medicare coverage.  The only
supplemental policies that offer a prescription drug benefit also include
other benefits that may not be of use to the senior citizen, but add to
the cost of the supplemental policy.  H.B. 1268 allows insurers who offer
Medicare supplemental policies to offer an outpatient prescription drug
benefit plan as part of each Medicare supplement plan that the insurer
offers.  The bill provides for approval by the commissioner of insurance
of outpatient drug benefit plans.  

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 Article 3.74, Insurance Code, by adding Section 3B, as
follows: 

Sec.  3B.  OUTPATIENT PRESCRIPTION DRUG BENEFIT COVERAGE.  (a) Authorizes
an insurer or other entity described by Section 1(a) that issues a
Medicare supplement policy to also offer the policyholder one of two
outpatient prescription drug benefit plans.  

(b)  Requires the commissioner of insurance (commissioner) to approve or
disapprove an outpatient drug benefit plan described by Subsection (a) of
this section that is filed for approval under Section 2(b) of this article
not later than the 60th day after the date the insurer or other entity
files the plan with the Texas Department of Insurance (TDI).  Provides
that a drug benefit plan that has not been approved or disapproved by the
commissioner before the 61st day after the date the plan is filed with TDI
is deemed approved on that day. 

(c)  Authorizes an insurer or other entity described by Section 1(a) of
this article to offer participation in a prescription drug discount
program in connection with the solicitation of an application for issuance
of a Medicare supplement policy. Defines "prescription drug discount
program." 

(d)  Provides that an offer of participation in a prescription drug
discount program described by Subsection (c) is not a violation of Section
21.21 of this code or any other law prohibiting the offer of rebates in
the solicitation of insurance policies. 

SECTION 2.  Effective date:  September 1, 2003.
                       Makes application of this Act prospective to
January 1, 2004.