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A BILL TO BE ENTITLED
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AN ACT
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relating to the application of prescription drug price reductions; |
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imposing a civil penalty. |
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       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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       SECTION 1.  Chapter 1369, Insurance Code, is amended by |
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adding Subchapter B-3 to read as follows: |
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SUBCHAPTER B-3.  PRESCRIPTION DRUG PRICE REDUCTIONS |
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       Sec. 1369.095.  DEFINITIONS. In this subchapter: |
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             (1)  "Manufacturer" means a person who is engaged in |
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making, preparing, propagating, fabricating, compounding, |
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processing, packaging, repackaging, labeling or relabeling of a |
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prescription drug or biological product. |
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             (2)  "Pharmacy benefit manager" and "prescription |
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drug" have the meanings assigned by Section 1369.501. |
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       Sec. 1369.096.  APPLICABILITY OF SUBCHAPTER. (a) This |
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subchapter applies only to a health benefit plan that provides |
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benefits for medical or surgical expenses incurred as a result of a |
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health condition, accident, or sickness, including an individual, |
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group, blanket, or franchise insurance policy or insurance |
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agreement, a group hospital service contract, or an individual or |
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group evidence of coverage or similar coverage document that is |
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issued by: |
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             (1)  an insurance company; |
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             (2)  a group hospital service corporation operating |
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under Chapter 842; |
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             (3)  a health maintenance organization operating under |
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Chapter 843; |
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             (4)  an approved nonprofit health corporation that |
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holds a certificate of authority under Chapter 844; |
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             (5)  a multiple employer welfare arrangement that holds |
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a certificate of authority under Chapter 846; |
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             (6)  a stipulated premium company operating under |
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Chapter 884; |
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             (7)  a fraternal benefit society operating under |
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Chapter 885; |
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             (8)  a Lloyd's plan operating under Chapter 941; or |
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             (9)  an exchange operating under Chapter 942. |
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       (b)  Notwithstanding any other law, this subchapter applies |
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to: |
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             (1)  a small employer health benefit plan subject to |
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Chapter 1501, including coverage provided through a health group |
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cooperative under Subchapter B of that chapter; |
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             (2)  a standard health benefit plan issued under |
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Chapter 1507; |
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             (3)  a basic coverage plan under Chapter 1551; |
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             (4)  a basic plan under Chapter 1575; |
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             (5)  a primary care coverage plan under Chapter 1579; |
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             (6)  a plan providing basic coverage under Chapter |
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1601; |
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             (7)  group health coverage made available by a school |
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district in accordance with Section 22.004, Education Code; |
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             (8)  a regional or local health care program operated |
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under Section 75.104, Health and Safety Code; |
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             (9)  a self-funded health benefit plan sponsored by a |
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professional employer organization under Chapter 91, Labor Code; |
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             (10)  county employee group health benefits provided |
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under Chapter 157, Local Government Code; and |
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             (11)  health and accident coverage provided by a risk |
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pool created under Chapter 172, Local Government Code. |
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       Sec. 1369.097.  EXCEPTIONS TO APPLICABILITY OF SUBCHAPTER. |
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This subchapter does not apply to an issuer or provider of health |
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benefits under or a pharmacy benefit manager administering pharmacy |
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benefits under: |
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             (1)  the state Medicaid program, including the Medicaid |
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managed care program under Chapter 540, Government Code; |
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             (2)  the child health plan program under Chapter 62, |
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Health and Safety Code; |
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             (3)  the TRICARE military health system; or |
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    Statutes affected: Introduced: ()
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