SRC-MSY S.B. 450 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 450
78R4415 KCR-FBy: Carona
State Affairs
2/20/2003
As Filed


DIGEST AND PURPOSE 

Under current law, all seniors over the age of 65 qualify for Medicare and
can purchase additional policies to supplement Medicare coverage.  The
only supplementary policies that offer a prescription drug benefit also
include other benefits that may not be of use to the senior, but add to
the cost of the supplementary policy.  As proposed, S.B. 450 requires all
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 allows a group or individual
policyholder to opt out of such outpatient prescription 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.  Requires an
insurer or other entity described by Section 1(a) that issues a Medicare
supplement policy to also offer the policyholder one of three outpatient
prescription drug benefit plans.  Authorizes the policyholder to reject
the coverage required under this section. 

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