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AN ACT
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relating to the transfer or sale of patient information or |
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prescription drug history by discount health care programs; |
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providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subdivisions (3) and (4), Section 76.001, Health |
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and Safety Code, are amended to read as follows: |
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(3) "Discount health care program" means a business |
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arrangement or contract in which an entity, in exchange for fees, |
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dues, charges, or other consideration, offers its members access to |
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discounts on health care services provided by health care |
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providers. The term does not include an insurance policy, |
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certificate of coverage, or other product regulated by the Texas |
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Department of Insurance or a self-funded or self-insured employee |
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benefit plan. For purposes of this subsection, consideration |
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includes patient information or patient prescription drug history |
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provided by members, if the entity engages in the transfer or sale |
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of such patient information, patient prescription drug history, or |
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drug manufacturer rebates. |
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(4) "Discount health care program operator" means a |
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person who, in exchange for fees, dues, charges, or other |
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consideration, operates a discount health care program and |
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contracts with providers, provider networks, or other discount |
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health care program operators to offer access to health care |
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services at a discount and determines the charge to members. For |
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purposes of this subsection, consideration includes patient |
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information or patient prescription drug history provided by |
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members, if the person engages in the transfer or sale of such |
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patient information, patient prescription drug history, or drug |
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manufacturer rebates. |
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SECTION 2. Section 76.053, Health and Safety Code, is |
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amended by adding Subsection (a-1) and amending Subsection (b) to |
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read as follows: |
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(a-1) If a program operator engages in the transfer or sale |
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of a member's patient information or patient prescription drug |
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history, the program operator shall, before enrollment, provide |
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each prospective member disclosure materials describing the |
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program operator's practices regarding such transfer or sale. |
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(b) A marketer shall use disclosure materials that comply |
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with this section [Subsection (a)]. |
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SECTION 3. Title 21, Insurance Code, is amended by adding |
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Chapter 7002 to read as follows: |
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CHAPTER 7002. SUPPLEMENTAL PROVISIONS RELATING TO DISCOUNT HEALTH |
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CARE OPERATORS |
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Sec. 7002.001. DEFINITION. For purposes of Chapters 562 |
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and 7001, Insurance Code, consideration provided to a discount |
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health care program or a discount health care program operator |
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includes patient information or patient prescription drug history |
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provided by members, if the entity engages in the transfer or sale |
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of such patient information, patient prescription drug history, or |
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drug manufacturer rebates. |
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Sec. 7002.002. REQUIRED DISCLOSURE. If a discount health |
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care program operator engages in the transfer or sale of a member's |
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patient information or patient prescription drug history, the |
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program operator shall, before enrollment, provide each |
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prospective member disclosure materials describing the program |
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operator's practices regarding such transfer or sale. |
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Sec. 7002.003. VIOLATION; PENALTIES. A violation of this |
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chapter may be enforced in the same manner as a violation of Chapter |
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562 or 7001. |
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SECTION 4. (a) Sections 1 and 2 of this Act take effect |
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only if House Bill No. 4341 or Senate Bill No. 2339, Acts of the 81st |
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Legislature, Regular Session, 2009, or another Act of the 81st |
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Legislature, Regular Session, 2009, enacting Chapter 562 and Title |
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21, Insurance Code, concerning discount health care programs is not |
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enacted or does not become law. |
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(b) Section 3 of this Act takes effect only if House Bill No. |
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4341 or Senate Bill No. 2339, Acts of the 81st Legislature, Regular |
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Session, 2009, or another Act of the 81st Legislature, Regular |
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Session, 2009, enacting Chapter 562 and Title 21, Insurance Code, |
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concerning discount health care programs is enacted and becomes |
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law. |
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SECTION 5. This Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 2423 passed the Senate on |
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May 1, 2009, by the following vote: Yeas 31, Nays 0; |
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May 21, 2009, Senate refused to concur in House amendments and |
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requested appointment of Conference Committee; May 23, 2009, House |
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granted request of the Senate; May 30, 2009, Senate adopted |
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Conference Committee Report by the following vote: Yeas 31, |
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Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 2423 passed the House, with |
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amendments, on May 15, 2009, by the following vote: Yeas 144, |
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Nays 0, one present not voting; May 23, 2009, House granted request |
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of the Senate for appointment of Conference Committee; |
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May 28, 2009, House adopted Conference Committee Report by the |
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following vote: Yeas 141, Nays 0, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |