By:  Van de Putte                                                 S.B. No. 865


A BILL TO BE ENTITLED

AN ACT

relating to pricing standards used under the Medicaid vendor drug 
program.  
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 32, Human Resources Code, 
is amended by adding Section 32.0462 to read as follows:
	Sec. 32.0462.  VENDOR DRUG PROGRAM; PRICING STANDARD.  
(a)  Notwithstanding any other provision of state law, the 
department shall:
		(1)  consider a nationally recognized, unbiased 
pricing standard for prescription drugs in determining 
reimbursement amounts under the vendor drug program; and
		(2)  update reimbursement amounts under the vendor drug 
program at least weekly.
	(b)  The commissioner shall adopt rules implementing this 
section.  In adopting rules, the commissioner shall 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.  If before implementing any provision of this Act 
a state agency determines that a waiver or authorization from a 
federal agency is necessary for implementation of that provision, 
the agency affected by the provision shall request the waiver or 
authorization and may delay implementing that provision until the 
waiver or authorization is granted.
	SECTION 3.  This Act takes effect September 1, 2003.