H.B. No. 1268




AN ACT

relating to outpatient drug benefit coverage in certain health 
insurance policies and discount drug programs.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Article 3.74, Insurance Code, is amended by 
adding Section 3B to read as follows:
	Sec. 3B.  OUTPATIENT PRESCRIPTION DRUG BENEFIT COVERAGE.  
(a)  An insurer or other entity described by Section 1(a) of this 
article that issues a Medicare supplement policy in this state may 
offer a group or individual policyholder:
		(1)  an outpatient prescription drug benefit plan 
authorized under 42 U.S.C. Section 1395ss; or
		(2)  a new or innovative outpatient prescription drug 
benefit plan filed with and approved by the commissioner under 
Section 2(b) of this article.
	(b)  The commissioner shall 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 department.  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 the 
department is deemed approved on that day.
	(c)  An insurer or other entity described by Section 1(a) of 
this article may offer participation in a prescription drug 
discount program in connection with the solicitation of an 
application for issuance of a Medicare supplement policy.  For 
purposes of this subsection, "prescription drug discount program" 
means any program that entitles a participant to purchase  
prescription drugs or other medical supplies and services from 
vendors at a discount pursuant to an agreement made with a 
participating pharmacy.
	(d)  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.  This Act takes effect September 1, 2003, and 
applies only to a Medicare supplement policy that is delivered, 
issued for delivery, or renewed on or after January 1, 2004, and to 
an offer of participation in a prescription drug discount program 
made on or after January 1, 2004.  A Medicare supplement policy that 
is delivered, issued for delivery, or renewed, or an offer of 
participation made, before January 1, 2004, is governed by the law 
as it existed immediately before the effective date of this Act, and 
that law is continued in effect for that purpose.




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 1268 was passed by the House on April 
30, 2003, by a non-record vote; and that the House concurred in 
Senate amendments to H.B. No. 1268 on May 30, 2003, by a non-record 
vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	
I certify that H.B. No. 1268 was passed by the Senate, with 
amendments, on May 28, 2003, by a viva-voce vote.

                                                  ______________________________
                                                      Secretary of the Senate   



APPROVED: __________________                                                
 
                Date                                                         




 
         __________________                                              
 
              Governor