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               A BILL TO BE ENTITLED
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               AN ACT
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            relating to certain prescription drug benefits under the Medicaid  | 
         
         
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            managed care program. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Chapter 533, Government Code, is amended by  | 
         
         
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            adding Subchapter C to read as follows: | 
         
         
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            SUBCHAPTER C.  PRESCRIPTION DRUG BENEFITS UNDER CERTAIN OUTPATIENT  | 
         
         
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            PHARMACY BENEFIT PLANS | 
         
         
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                   Sec. 533.071.  DEFINITION.  In this subchapter, "step  | 
         
         
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            therapy protocol" means a protocol that requires a recipient to use  | 
         
         
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            a prescription drug or sequence of prescription drugs other than  | 
         
         
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            the drug that the recipient's physician recommends for the  | 
         
         
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            recipient's treatment before a Medicaid managed care organization  | 
         
         
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            provides coverage for the recommended drug. | 
         
         
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                   Sec. 533.072.  APPLICABILITY OF SUBCHAPTER.  This subchapter  | 
         
         
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            applies only to an outpatient pharmacy benefit plan implemented by  | 
         
         
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            a Medicaid managed care organization. | 
         
         
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                   Sec. 533.073.  STEP THERAPY PROTOCOL EXCEPTION REQUESTS.   | 
         
         
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            (a)  A Medicaid managed care organization shall establish a process  | 
         
         
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            in a user-friendly format through which a step therapy protocol  | 
         
         
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            exception request may be submitted by a prescribing provider.  The  | 
         
         
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            process must be readily accessible to: | 
         
         
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                         (1)   a recipient who enrolls in a managed care plan  | 
         
         
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            offered by the organization or transfers to a managed care plan  | 
         
         
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            offered by the organization from a managed care plan offered by  | 
         
         
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            another Medicaid managed care organization; and | 
         
         
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                         (2)  the provider. | 
         
         
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                   (b)  A prescribing provider on behalf of a recipient may  | 
         
         
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            submit in written or electronic form or by telephone to the  | 
         
         
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            recipient's Medicaid managed care organization an exception  | 
         
         
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            request for a step therapy protocol required by the recipient's  | 
         
         
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            Medicaid managed care organization. | 
         
         
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                   (c)  A Medicaid managed care organization shall review and,  | 
         
         
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            if clinically appropriate, grant an exception request under  | 
         
         
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            Subsection (b) if the request includes a statement by the  | 
         
         
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            prescribing provider stating that: | 
         
         
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                         (1)  the drug required under the step therapy protocol: | 
         
         
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                               (A)  is contraindicated; | 
         
         
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                               (B)  will likely cause an adverse reaction in or  | 
         
         
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            physical or mental harm to the recipient; or | 
         
         
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                               (C)  is expected to be ineffective based on the  | 
         
         
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            known clinical characteristics of the recipient and the known  | 
         
         
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            characteristics of the prescription drug regimen; | 
         
         
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                         (2)  the recipient previously discontinued taking the  | 
         
         
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            drug required under the step therapy protocol: | 
         
         
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                               (A)  while enrolled in a managed care plan offered  | 
         
         
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            by the recipient's current Medicaid managed care organization or  | 
         
         
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            while enrolled in a managed care plan offered by another Medicaid  | 
         
         
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            managed care organization; and | 
         
         
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                               (B)  because the drug was not effective or had a  | 
         
         
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            diminished effect or because of an adverse event; | 
         
         
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                         (3)  the drug required under the step therapy protocol  | 
         
         
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            is not in the best interest of the recipient, based on clinical  | 
         
         
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            appropriateness, because the recipient's use of the drug is  | 
         
         
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            expected to: | 
         
         
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                               (A)  cause a significant barrier to the  | 
         
         
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            recipient's adherence to or compliance with the recipient's plan of  | 
         
         
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            care; | 
         
         
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                               (B)  worsen a comorbid condition of the recipient;  | 
         
         
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            or | 
         
         
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                               (C)  decrease the recipient's ability to achieve  | 
         
         
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            or maintain reasonable functional ability in performing daily  | 
         
         
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            activities; or | 
         
         
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                         (4)  the drug that is subject to the step therapy  | 
         
         
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            protocol was prescribed for the recipient's condition while  | 
         
         
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            enrolled in a managed care plan offered by the recipient's current  | 
         
         
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            Medicaid managed care organization or while enrolled in a managed  | 
         
         
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            care plan offered by a previous Medicaid managed care organization  | 
         
         
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            and the recipient is stable on the drug. | 
         
         
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                   (d)  Except as provided by Subsection (e), if a Medicaid  | 
         
         
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            managed care organization does not deny an exception request under  | 
         
         
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            Subsection (b) before 72 hours after the organization receives the  | 
         
         
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            request, the request is considered granted. | 
         
         
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                   (e)  If a statement described by Subsection (c) also states  | 
         
         
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            that the prescribing provider reasonably believes that denial of  | 
         
         
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            the exception request makes the death of or serious harm to the  | 
         
         
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            recipient probable, the request is considered granted if the  | 
         
         
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            Medicaid managed care organization does not deny the request before  | 
         
         
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            24 hours after the organization receives the request. | 
         
         
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                   (f)  A Medicaid managed care organization may not require a  | 
         
         
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            prescribing provider to submit a subsequent exception request under  | 
         
         
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            Subsection (b) for a drug for treatment of a recipient's condition  | 
         
         
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            for which the organization has already granted an exception to a  | 
         
         
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            step therapy protocol for the recipient unless the organization's  | 
         
         
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            medical director determines that the drug for treatment under the  | 
         
         
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            previously granted exception request will likely cause physical or  | 
         
         
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            mental harm to the recipient. | 
         
         
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                   Sec. 533.074.  PREFERRED DRUG LIST; SEARCHABLE DATABASE OF  | 
         
         
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            PREFERRED DRUGS AND RESTRICTIONS.  (a)  A Medicaid managed care  | 
         
         
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            organization shall distribute current copies of the organization's  | 
         
         
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            preferred drug list by posting the list on the organization's  | 
         
         
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            Internet website. | 
         
         
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                   (b)  A Medicaid managed care organization shall maintain on  | 
         
         
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            the organization's Internet website a searchable database through  | 
         
         
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            which a provider may search the organization's preferred drug list  | 
         
         
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            to easily determine whether a prescription drug or drug class is  | 
         
         
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            subject to any prior authorization requirements, clinical edits, or  | 
         
         
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            other clinical restrictions.  An organization shall make reasonable  | 
         
         
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            efforts to ensure that the database contains current information. | 
         
         
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                   SECTION 2.  If before implementing any provision of this Act  | 
         
         
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            a state agency determines that a waiver or authorization from a  | 
         
         
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            federal agency is necessary for implementation of that provision,  | 
         
         
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            the agency affected by the provision shall request the waiver or  | 
         
         
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            authorization and may delay implementing that provision until the  | 
         
         
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            waiver or authorization is granted. | 
         
         
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                   SECTION 3.  This Act takes effect September 1, 2023. |