S.B. 1173 78(R) BILL ANALYSIS
S.B. 1173
By: Janek
State Health Care Expenditures, Select
Committee Report (Unamended)
BACKGROUND AND PURPOSE
One of the cost drivers in health insurance is the frequency of
prescriptions and the increased cost
of prescription medication. As proposed, S.B. 1173 amends the Insurance
Code to address
prescription drug benefits under the group health benefit program for
certain governmental
employees.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to
a state officer,
institution, or agency.
ANALYSIS
SECTION 1. Amends Subchapter E, Chapter 1551, Insurance Code, as effective
June 1, 2003,
by adding Section 1551.218, as follows:
Sec. 1551.218. PRIOR AUTHORIZATION FOR CERTAIN DRUGS. (a) Defines
"drug formulary."
(b) Requires a health benefit plan provided under this chapter that uses
a drug
formulary in providing a prescription drug benefit to require prior
authorization
for coverage of the following categories of prescribed drugs if the
specific drug
prescribed is not included in the formulary:
(1) a gastrointestinal drug;
(2) a cholesterol-lowering drug;
(3) an anti-inflammatory drug;
(4) an antihistamine drug; and
(5) an antidepressant drug.
(c) Requires the board of trustees of the Employees Retirement System of
Texas
every six months to submit to the comptroller and to the Legislative
Budget Board
a report regarding any cost savings achieved in the program through
implementation of the prior authorization requirement of this section.
Requires a
report to cover the previous six-month period.
SECTION 2. Amends Subchapter D, Chapter 1575, Insurance Code, as effective
June 1, 2003,
by adding Section 1575.161, as follows:
Sec. 1575.161. PRIOR AUTHORIZATION FOR CERTAIN DRUGS. (a) Defines
"drug formulary."
(b) Requires a health benefit plan provided under this chapter that uses
a drug
formulary in providing a prescription drug benefit to require prior
authorization
for coverage of the following categories of prescribed drugs if the
specific drug
prescribed is not included in the formulary:
(1) a gastrointestinal drug;
(2) a cholesterol-lowering drug;
(3) an anti-inflammatory drug;
(4) an antihistamine; and
(5) an antidepressant drug.
(c) Requires the board of trustees every six months to submit to the
comptroller
and to the Legislative Budget Board a report regarding any cost savings
achieved
in the program through implementation of the prior authorization
requirement of
this section. Requires a report to cover the previous six-month period.
SECTION 3. Amends Subchapter E, Chapter 3, Insurance Code, by adding
Article 3.50-7A, as
follows:
Art. 3.50-7A. PRIOR AUTHORIZATION FOR CERTAIN DRUGS PROVIDED
UNDER TEXAS SCHOOL EMPLOYEES UNIFORM GROUP COVERAGE
PROGRAM. (a) Defines "drug formulary."
(b) Requires a health coverage plan provided under the uniform group
coverage
program established under Article 3.50-7 of this code that uses a drug
formulary
in providing a prescription drug benefit to require prior authorization
for coverage
of the following categories of prescribed drugs if the specific drug
prescribed is
not included in the formulary:
(1) a gastrointestinal drug;
(2) a cholesterol-lowering drug;
(3) an anti-inflammatory drug;
(4) an antihistamine drug; and
(5) an antidepressant drug.
(c) Requires the Teacher Retirement System of Texas every six months to
submit
to the comptroller and to the Legislative Budget Board a report
regarding any cost
savings achieved in the uniform group coverage program through
implementation
of the prior authorization requirement of this article. Requires a
report to cover
the previous six-month period.
SECTION 4. Provides that the initial reports required by Sections
1551.218(c) and 1575.161(c),
Insurance Code, and Subsection (c), Article 3.50-7A, Insurance Code, as
added by this Act, are
due September 1, 2005.
SECTION 5. Effective date: Provides that this Act takes effect September
1, 2003, and applies
to health benefit plans provided under Chapters 1551 and 1575, Insurance
Code, as effective
June 1, 2003, and health coverage plans subject to Article 3.50-7A,
Insurance Code, as added by
this Act, beginning with the 2004-2005 plan year.
EFFECTIVE DATE
This Act takes effect September 1, 2003, and applies to health benefit
plans provided under Chapters 1551 and 1575, Insurance Code, as effective
June 1, 2003, and health coverage plans subject to Article 3.50-7A,
Insurance Code, as added by this Act, beginning with the 2004-2005 plan
year.