78R4415 KCR-F

By:  Carona                                                       S.B. No. 450



A BILL TO BE ENTITLED

AN ACT

relating to outpatient drug benefit coverage in certain health 
insurance policies.
	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 must 
also offer the group or individual policyholder:
		(1)  an outpatient prescription drug benefit plan 
authorized under 42 U.S.C. Section 1395ss;
		(2)  a new or innovative outpatient prescription drug 
benefit plan filed with and approved by the commissioner under 
Section 2(b) of this article; or
		(3)  a basic or extended outpatient prescription drug 
benefit plan prescribed by the commissioner.
	(b)  The group or individual policyholder may reject 
coverage required to be offered under this section.
	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.  A 
Medicare supplement policy that is delivered, issued for delivery, 
or renewed 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.