LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 9, 2013 TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3262 by Miller, Doug (Relating to pharmacy benefit managers contracting with the child health plan program, the Medicaid managed care program, and health plans for certain government employees.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Government Code, Chapter 531 and the Insurance Code, Chapters 1551, 1575, 1579 and 1601 to require a state health plan pharmacy benefit manager contract to include a maximum allowable cost for pharmacy claim reimbursements for each covered medication. The bill would apply these requirements to Medicaid, the Children's Health Insurance Program (CHIP), TRS-Care, TRS-Active Care, the state employee Group Benefits Program health plan administered by the Employees Retirement System, and plans administered to employees by the Texas A&M University System and the University of Texas System. The bill applies only to a pharmacy benefits manager contract executed or renewed on or after the effective date of the bill. The bill takes effect September 1, 2013. The Health and Human Services Commission, Texas Department of Insurance, Employees Retirement System, the Teacher Retirement System, the Texas A&M University System, and the University of Texas System anticipate any additional work resulting from the passage of the bill could be reasonably absorbed within current resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance, 515 Board of Pharmacy, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration LBB Staff: UP, CL, JI, JJO, LR, ED, SK, JW LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 9, 2013 TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3262 by Miller, Doug (Relating to pharmacy benefit managers contracting with the child health plan program, the Medicaid managed care program, and health plans for certain government employees.), As Introduced TO: Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health FROM: Ursula Parks, Director, Legislative Budget Board IN RE: HB3262 by Miller, Doug (Relating to pharmacy benefit managers contracting with the child health plan program, the Medicaid managed care program, and health plans for certain government employees.), As Introduced Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health Ursula Parks, Director, Legislative Budget Board Ursula Parks, Director, Legislative Budget Board HB3262 by Miller, Doug (Relating to pharmacy benefit managers contracting with the child health plan program, the Medicaid managed care program, and health plans for certain government employees.), As Introduced HB3262 by Miller, Doug (Relating to pharmacy benefit managers contracting with the child health plan program, the Medicaid managed care program, and health plans for certain government employees.), As Introduced No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Government Code, Chapter 531 and the Insurance Code, Chapters 1551, 1575, 1579 and 1601 to require a state health plan pharmacy benefit manager contract to include a maximum allowable cost for pharmacy claim reimbursements for each covered medication. The bill would apply these requirements to Medicaid, the Children's Health Insurance Program (CHIP), TRS-Care, TRS-Active Care, the state employee Group Benefits Program health plan administered by the Employees Retirement System, and plans administered to employees by the Texas A&M University System and the University of Texas System. The bill applies only to a pharmacy benefits manager contract executed or renewed on or after the effective date of the bill. The bill takes effect September 1, 2013. The Health and Human Services Commission, Texas Department of Insurance, Employees Retirement System, the Teacher Retirement System, the Texas A&M University System, and the University of Texas System anticipate any additional work resulting from the passage of the bill could be reasonably absorbed within current resources. The bill would amend the Government Code, Chapter 531 and the Insurance Code, Chapters 1551, 1575, 1579 and 1601 to require a state health plan pharmacy benefit manager contract to include a maximum allowable cost for pharmacy claim reimbursements for each covered medication. The bill would apply these requirements to Medicaid, the Children's Health Insurance Program (CHIP), TRS-Care, TRS-Active Care, the state employee Group Benefits Program health plan administered by the Employees Retirement System, and plans administered to employees by the Texas A&M University System and the University of Texas System. The bill applies only to a pharmacy benefits manager contract executed or renewed on or after the effective date of the bill. The bill takes effect September 1, 2013. The Health and Human Services Commission, Texas Department of Insurance, Employees Retirement System, the Teacher Retirement System, the Texas A&M University System, and the University of Texas System anticipate any additional work resulting from the passage of the bill could be reasonably absorbed within current resources. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance, 515 Board of Pharmacy, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration 323 Teacher Retirement System, 327 Employees Retirement System, 454 Department of Insurance, 515 Board of Pharmacy, 529 Health and Human Services Commission, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration LBB Staff: UP, CL, JI, JJO, LR, ED, SK, JW UP, CL, JI, JJO, LR, ED, SK, JW