Honorable Richard Peña Raymond, Chair, House Committee on Human Services
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB1917 by Raymond (Relating to contract requirements for prescription drug benefits provided by Medicaid managed care organizations.), As Introduced
No significant fiscal implication to the State is anticipated.
The bill would extend certain requirements pertaining to Medicaid managed care organizations employing the state's vendor drug program formulary, preferred drug list (PDL), and prior authorization procedures through August 31, 2030.
The Health and Human Services commission (HHSC) conducted a study to identify potential savings attributed to carving the vendor drug program formulary, PDL, and prior authorization procedures into managed care. However, cost containment strategies identified in the study can be implemented by HHSC regardless of who controls the formulary, PDL, and prior authorization procedures; therefore, there are no significant costs or savings associated with the provisions of the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.