By:  Carona                                                       S.B. No. 450
	(In the Senate - Filed February 11, 2003; February 17, 2003, 
read first time and referred to Committee on State Affairs; 
April 28, 2003, reported adversely, with favorable Committee 
Substitute by the following vote:  Yeas 7, Nays 0; April 28, 2003, 
sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 450                                    By:  Armbrister


A BILL TO BE ENTITLED

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, 
including hearing aids and eyeglasses, from vendors at a discount.
	(d)  An offer of participation in a prescription drug 
discount program described by Subsection (c) is not a violation of 
Article 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.



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