Amend SB 704 by adding the following appropriately numbered 
SECTIONS to the bill and renumbering subsequent SECTIONS of the 
bill accordingly:
	SECTION ____.  Subtitle H, Title 8, Insurance Code, is 
amended by adding Chapter 1560 to read as follows:

CHAPTER 1560.  DELIVERY OF PRESCRIPTION DRUGS BY MAIL
	Sec. 1560.001.  DEFINITIONS.  In this chapter:                          
		(1)  "Community retail pharmacy" means a pharmacy that 
is licensed as a Class A pharmacy under Chapter 560, Occupations 
Code.
		(2)  "Mail order pharmacy" means a pharmacy that is 
licensed under Chapter 560, Occupations Code, and that primarily 
delivers prescription drugs to an enrollee through the United 
States Postal Service or a commercial delivery service.
	Sec. 1560.002.  APPLICABILITY OF CHAPTER.  This chapter 
applies only to a health benefit plan that provides benefits for 
medical or surgical expenses incurred as a result of a health 
condition, accident, or sickness, including an individual, group, 
blanket, or franchise insurance policy or insurance agreement, a 
group hospital service contract, or an individual or group evidence 
of coverage or similar coverage document that is offered or 
administered by:
		(1)  the Teacher Retirement System of Texas under 
Chapter 1575 or 1579; or
		(2)  the Employees Retirement System of Texas under 
Chapter 1551.    
	Sec. 1560.003.  MULTIPLE-MONTH SUPPLY OF PRESCRIPTION DRUG.  
(a)  In this section, "multiple-month supply" means a supply for 60 
or more days.
	(b)  Notwithstanding any other law, an issuer of a health 
benefit plan that provides pharmacy benefits to enrollees must 
allow an enrollee to obtain from a community retail pharmacy a 
multiple-month supply of any prescription drug under the same terms 
and conditions applicable when the prescription drug is obtained 
from a mail order pharmacy, if the community retail pharmacy agrees 
to accept reimbursement on exactly the same terms and conditions 
that apply to a mail order pharmacy.
	(c)  This section does not require:                                     
		(1)  the issuer of a health benefit plan to contract 
with:           
			(A)  a retail pharmacy that does not agree to 
accept reimbursement on exactly the same terms and conditions that 
apply to a mail order pharmacy; or
			(B)  more than one mail order pharmacy; or                            
		(2)  a community retail pharmacy to:                                   
			(A)  provide a multiple-month supply of a 
prescription drug under the same terms and conditions applicable 
when the prescription drug is obtained from a mail order pharmacy; 
or
			(B)  agree to accept reimbursement on exactly the 
same terms and conditions that apply to a mail order pharmacy.
	Sec. 1560.004.  PRESCRIPTION DRUG REIMBURSEMENT RATES.  (a)  
An issuer of a health benefit plan that provides pharmacy benefits 
to enrollees shall reimburse pharmacies participating in the health 
plan using prescription drug reimbursement rates, for both brand 
name and generic prescription drugs, that are based on a current and 
nationally recognized benchmark index that includes average 
wholesale price and maximum allowable cost.
	(b)  Regardless of whether a pharmacy is a mail order 
pharmacy or a community retail pharmacy, an issuer of a health 
benefit plan shall use the same benchmark index, including the same 
average wholesale price, maximum allowable cost, and national 
prescription drug codes, to reimburse all pharmacies participating 
in the health benefit plan.
	SECTION ____.  Section 1551.224, Insurance Code, is amended 
to read as follows:
	Sec. 1551.224.  MAIL ORDER REQUIREMENT FOR PRESCRIPTION DRUG 
COVERAGE PROHIBITED.  (a)  The board of trustees or a health benefit 
plan under this chapter that provides benefits for prescription 
drugs may not require a participant in the group benefits program to 
purchase a prescription drug through a mail order program.
	(b)  Except as provided by Subsection (c), the [The] board of 
trustees or a health benefit plan shall require that a participant 
who chooses to obtain a prescription drug through a retail pharmacy 
or other method other than by mail order pay a deductible, 
copayment, coinsurance, or other cost-sharing obligation to cover 
the additional cost of obtaining a prescription drug through that 
method rather than by mail order.
	(c)  The board of trustees or a health benefit plan may not 
require a participant who obtains a multiple-month supply of a 
prescription drug from a retail pharmacy under Section 1560.003 to 
pay a deductible, copayment, coinsurance, or other cost-sharing 
obligation that differs from the amount the participant pays for a 
multiple-month supply of that drug through a mail order program.
	SECTION ____.  Chapter 1560, Insurance Code, as added by 
this Act, and Section 1551.224, Insurance Code, as amended by this 
Act apply only to a health benefit plan that is delivered, issued 
for delivery, or renewed on or after January 1, 2010.  A health 
benefit plan that is delivered, issued for delivery, or renewed 
before January 1, 2010, is covered by the law in effect at the time 
the health benefit plan was delivered, issued for delivery, or 
renewed, and that law is continued in effect for that purpose.