BILL ANALYSIS

Senate Research Center                                                                                                     H.B. 1966

81R5948 KFF-D                                                                                By: Davis, John et al. (Nelson)

Health & Human Services

5/13/2009

Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 1966 requires the Health and Human Services Commission to develop an electronic prescribing implementation plan under the vendor drug program for Medicaid and the children's health insurance program (CHIP) to improve patient safety and standardize electronic prescribing systems used in the program. Electronic prescribing allows a practitioner to ensure that the item being prescribed will not interfere with other medications the patient is taking and thus can prevent costly medical errors.

The plan must establish e-prescribing standards with which pharmacists, practitioners, pharmacy benefit managers, and health plans that transmit, directly or through an intermediary, prescriptions for Medicaid recipients and CHIP enrollees and prescription-related information using electronic media must comply and timeframes within which pharmacists, practitioners, pharmacy benefit managers, and health plans must comply with those standards.

H.B. 1966 amends current law relating to an e-prescribing implementation plan under the Medicaid and CHIP programs.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  VENDOR DRUG PROGRAM; E-PRESCRIBING.  (a) Defines "child health plan program," "electronic media," "e-prescribing," "Medicaid program," "pharmacist," "pharmacy," "practitioner," and "prescription-related information."

(b)  Requires the Health and Human Services Commission (HHSC) to develop an e-prescribing implementation plan under the vendor drug program for the Medicaid and child health plan programs designed to improve patient safety and standardize electronic prescribing systems used in the program.  Requires that the plan establish:

(1)  e-prescribing standards with which pharmacists, practitioners, pharmacy benefit managers, and health plans that transmit, directly or through an intermediary, prescriptions for Medicaid program recipients and child health plan program enrollees and prescription-related information using electronic media must comply; and

(2)  time frames within which pharmacists, practitioners, pharmacy benefit managers, and health plans must comply with the standards established under Subdivision (1) of this subsection.

(c)  Requires HHSC, not later than December 1, 2009, to submit an initial report to the governor and the Legislative Budget Board (LBB) detailing the e-prescribing implementation plan developed under this section.  Requires the report to include the projected expenditures and cost savings anticipated for the plan during the state fiscal year.

(d)  Requires HHSC, not later than December 1, 2010, to submit a final report to the governor and LBB regarding the e-prescribing implementation plan developed under this section.  Requires the report to include expenditures associated with and cost savings realized from the plan.

SECTION 2.  EFFECTIVE DATE.  Effective date: upon passage or September 1, 2009.