SRC-JEC S.B. 865 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 865
78R3948 KKA-DBy: Van de Putte
Health & Human Services
4/12/2003
As Filed


DIGEST AND PURPOSE 

Currently, the Medicaid Vendor Drug Program (VDP) uses a variety of
resources to determine pharmaceutical product pricing when it reimburses
pharmacists participating in the VDP.  Some pharmacists have been
adversely impacted because they were not reimbursed accurately or in a
timely manner.  A nationally recognized drug pricing standard information
source exists, and is considered to be the industry standard for unbiased
and accurate drug price reporting.  As proposed, S.B. 865 requires the VDP
to base prescription drug reimbursement amounts on a nationally
recognized, unbiased pricing standard, and to update drug prices based on
that source weekly. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Health and Human Services
Commission, or the commissioner or executive director of an agency
operating part of the medical assistance program, as appropriate, in
SECTION 1 (Section 32.0462, Human Resources Code) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter B, Chapter 32, Human Resources Code, by
adding Section 32.0462, as follows: 

Sec. 32.0462.  VENDOR DRUG PROGRAM; PRICING STANDARD.  (a)  Requires the
Health and Human Services Commission or an agency operating part of the
medical assistance program to base reimbursement amounts under the vendor
drug program on a nationally recognized, unbiased pricing standard for
prescription drugs, and update reimbursement amounts under the vendor drug
program based on that standard at least weekly. 

(b)  Requires the Health and Human Services Commission or the commissioner
or executive director of an agency operating part of the medical
assistance program (commissioner)  to adopt rules implementing this
section.  Requires the commissioner, in adopting rules, to ensure that
implementation of this section does not adversely affect the amount of
federal funds available to the state for providing benefits under the
vendor drug program.  

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

SECTION 3.  Effective date:  September 1, 2003.