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            COMMITTEE VOTE | 
         
         
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                   YeaNayAbsentPNV | 
         
         
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                   KolkhorstX | 
         
         
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                   PerryX | 
         
         
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               A BILL TO BE ENTITLED
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               AN ACT
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            relating to prescription drug benefits under Medicaid and the child  | 
         
         
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            health plan program. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Subchapter B, Chapter 531, Government Code, is  | 
         
         
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            amended by adding Section 531.0691 to read as follows: | 
         
         
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                   Sec. 531.0691.  VENDOR DRUG PROGRAM INCLUSION.  The  | 
         
         
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            commission shall ensure that the vendor drug program includes all  | 
         
         
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            drugs and national drug codes made available on the federal  | 
         
         
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            Medicaid Drug Rebate Program regardless of the status of the  | 
         
         
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            certification of information for the drug. | 
         
         
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                   SECTION 2.  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.  PREFERRED DRUG LIST EXCEPTIONS.  (a)  The  | 
         
         
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            commission shall adopt rules allowing exceptions to the preferred  | 
         
         
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            drug list if: | 
         
         
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                         (1)  the drug required under the preferred drug list: | 
         
         
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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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            preferred drug at any point in the recipient's clinical history and  | 
         
         
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            for any length of time because the drug: | 
         
         
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                               (A)  was not effective; | 
         
         
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                               (B)  had a diminished effect; or | 
         
         
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                               (C)  resulted in an adverse event; | 
         
         
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                         (3)  the recipient was prescribed and is taking a  | 
         
         
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            nonpreferred drug in the antidepressant or antipsychotic drug class  | 
         
         
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            and the recipient: | 
         
         
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                               (A)  was prescribed the nonpreferred drug before  | 
         
         
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            being discharged from an inpatient facility; | 
         
         
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                               (B)  is stable on the nonpreferred drug; and | 
         
         
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                               (C)  is at risk of experiencing complications from  | 
         
         
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            switching from the nonpreferred drug to another drug; or | 
         
         
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                         (4)  the preferred drug is not available for reasons  | 
         
         
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            outside of the Medicaid managed care organization's control,  | 
         
         
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            including because: | 
         
         
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                               (A)  the drug is in short supply according to the  | 
         
         
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            Food and Drug Administration Drug Shortages Database; or | 
         
         
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                               (B)  the drug's manufacturer has placed the drug  | 
         
         
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            on backorder or allocation. | 
         
         
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                   (b)  An exception provided under this section does not  | 
         
         
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            subject the Medicaid managed care plan to liquidated damages for  | 
         
         
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            failing to comply with the preferred drug list. | 
         
         
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                   SECTION 3.  Section 531.072, Government Code, is amended by  | 
         
         
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            adding Subsections (b-3), (g), and (h) to read as follows: | 
         
         
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                   (b-3)  Notwithstanding Subsection (b), the preferred drug  | 
         
         
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            lists must contain all therapeutic equivalents for a generic drug  | 
         
         
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            on the preferred drug list. | 
         
         
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                   (g)  The commission shall develop an expedited review  | 
         
         
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            process to consider requests from managed care organizations and  | 
         
         
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            providers to add drugs to the preferred drug list. | 
         
         
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                   (h)  The commission shall grant temporary non-preferred  | 
         
         
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            status to new drugs that are available but have not yet been  | 
         
         
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            reviewed by the drug utilization review board and establish  | 
         
         
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            criteria for authorizing drugs with temporary non-preferred  | 
         
         
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            status. | 
         
         
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                   SECTION 4.  Section 531.073(b), Government Code, is amended  | 
         
         
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            to read as follows: | 
         
         
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                   (b)  The commission shall establish procedures for the prior  | 
         
         
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            authorization requirement under the Medicaid vendor drug program to  | 
         
         
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            ensure that the requirements of 42 U.S.C. Section 1396r-8(d)(5) and  | 
         
         
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            its subsequent amendments are met.  Specifically, the procedures  | 
         
         
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            must ensure that: | 
         
         
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                         (1)  [a prior authorization requirement is not imposed  | 
         
         
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            for a drug before the drug has been considered at a meeting of the  | 
         
         
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            Drug Utilization Review Board under Section 531.0736; | 
         
         
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                         [(2)]  there will be a response to a request for prior  | 
         
         
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            authorization by telephone or other telecommunications device  | 
         
         
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            within 24 hours after receipt of a request for prior authorization;  | 
         
         
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            and | 
         
         
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                         (2) [(3)]  a 72-hour supply of the drug prescribed will  | 
         
         
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            be provided in an emergency or if the commission does not provide a  | 
         
         
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            response within the time required by Subdivision (1) [(2)]. | 
         
         
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                   SECTION 5.  Sections 531.0736(c) and (d), Government Code,  | 
         
         
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            are amended to read as follows: | 
         
         
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                   (c)  The executive commissioner shall determine the  | 
         
         
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            composition of the board, which must: | 
         
         
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                         (1)  comply with applicable federal law, including 42  | 
         
         
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            C.F.R. Section 456.716; | 
         
         
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                         (2)  include three [two] representatives of managed  | 
         
         
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            care organizations [as nonvoting members], all [one] of whom must  | 
         
         
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            be physicians or pharmacists [a physician and one of whom must be a  | 
         
         
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            pharmacist]; | 
         
         
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                         (3)  include at least 17 physicians and pharmacists  | 
         
         
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            who: | 
         
         
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                               (A)  provide services across the entire  | 
         
         
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            population of Medicaid recipients and represent different  | 
         
         
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            specialties, including at least one of each of the following types  | 
         
         
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            of physicians: | 
         
         
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                                     (i)  a pediatrician; | 
         
         
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                                     (ii)  a primary care physician; | 
         
         
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                                     (iii)  an obstetrician and gynecologist; | 
         
         
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                                     (iv)  a child and adolescent psychiatrist;  | 
         
         
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            and | 
         
         
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                                     (v)  an adult psychiatrist; and | 
         
         
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                               (B)  have experience in either developing or  | 
         
         
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            practicing under a preferred drug list; and | 
         
         
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                         (4)  include a consumer advocate who represents  | 
         
         
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            Medicaid recipients. | 
         
         
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                   (d)  Notwithstanding any other law, members [Members]  | 
         
         
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            appointed under Subsection (c)(2) may attend quarterly and other  | 
         
         
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            regularly scheduled meetings, but may not: | 
         
         
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                         (1)  attend portions of the executive sessions in which  | 
         
         
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            confidential drug pricing information is shared; or | 
         
         
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                         (2)  access confidential drug pricing information. | 
         
         
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                   SECTION 6.  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 7.  This Act takes effect September 1, 2023. | 
         
         
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            * * * * * |