The bill, introduced by Senator Kolkhorst as S.B. No. 1627, aims to enhance the security of patient data managed by pharmacy benefit managers in Texas. It amends the Insurance Code by adding a new section, 4151.1531, which explicitly prohibits pharmacy benefit managers from storing or processing patient data for Texas residents in locations outside of the United States. This measure is intended to protect sensitive patient information and ensure that it remains within the jurisdiction of U.S. laws and regulations.

The bill is set to take effect on September 1, 2025, providing a timeline for pharmacy benefit managers to comply with the new requirements regarding the handling of patient data. By restricting the geographical storage and processing of this data, the legislation seeks to bolster patient privacy and security in the healthcare system.

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