Texas 2017 85th Regular

Texas Senate Bill SB1922 Introduced / Bill

Filed 03/10/2017

                    85R11447 LED-D
 By: Schwertner S.B. No. 1922


 A BILL TO BE ENTITLED
 AN ACT
 relating to prescription drug benefits in the Medicaid managed care
 program.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Chapter 533, Government Code, is amended by
 adding Subchapter B to read as follows:
 SUBCHAPTER B. PRESCRIPTION DRUG BENEFITS
 Sec. 533.051.  DEFINITIONS. In this subchapter:
 (1)  "Labeler" and "manufacturer" have the meanings
 assigned by Section 531.070.
 (2)  "Recipient" means a Medicaid recipient.
 (3)  "Step therapy protocol" means a protocol that
 requires a recipient to use a prescription drug or sequence of
 prescription drugs other than the drug that the recipient's
 physician recommends for the recipient's treatment before a managed
 care organization provides coverage for the recommended drug.
 Sec. 533.052.  APPLICABILITY OF SUBCHAPTER. (a)  This
 subchapter applies to an outpatient pharmacy benefit plan
 implemented by a managed care organization that contracts with the
 commission to provide health care benefits to recipients.
 (b)  To the extent of a conflict between the requirements for
 an outpatient pharmacy benefit plan for a managed care
 organization's enrolled recipients specified by Sections
 533.005(a)(23)(A), (B), and (C) and the requirements for that plan
 specified by this subchapter, the requirements specified by
 Sections 533.005(a)(23)(A), (B), and (C) prevail. This subsection
 expires August 31, 2018.
 Sec. 533.053.  STEP THERAPY PROTOCOL EXCEPTION REQUESTS.
 (a) A managed care organization shall establish a process in a
 user-friendly format through which an exception request under this
 section may be submitted by a prescribing provider.  The process
 must be readily accessible to:
 (1)   a recipient who enrolls in a managed care plan
 offered by the managed care organization or transfers to a managed
 care plan offered by the managed care organization from a managed
 care plan offered by another managed care organization; and
 (2)  the provider.
 (b)  A prescribing provider on behalf of a recipient may
 submit to the recipient's managed care organization a written
 request for an exception to a step therapy protocol required by the
 recipient's managed care organization. The executive commissioner
 by rule shall prescribe the form of the written request.
 (c)  A managed care organization shall grant a written
 request under Subsection (b) if the request includes the
 prescribing provider's written statement stating that:
 (1)  the drug required under the step therapy protocol:
 (A)  is contraindicated;
 (B)  will likely cause an adverse reaction in or
 physical or mental harm to the recipient; or
 (C)  is expected to be ineffective based on the
 known clinical characteristics of the recipient and the known
 characteristics of the prescription drug regimen;
 (2)  the recipient previously discontinued taking the
 drug required under the step therapy protocol, or another
 prescription drug in the same pharmacologic class or with the same
 mechanism of action as the required drug:
 (A)  while enrolled in a managed care plan offered
 by the recipient's current managed care organization or while
 enrolled in a managed care plan offered by another managed care
 organization; and
 (B)  because the drug was not effective or had a
 diminished effect or because of an adverse event;
 (3)  the drug required under the step therapy protocol
 is not in the best interest of the recipient, based on clinical
 appropriateness, because the recipient's use of the drug is
 expected to:
 (A)  cause a significant barrier to the
 recipient's adherence to or compliance with the recipient's plan of
 care;
 (B)  worsen a comorbid condition of the recipient;
 or
 (C)  decrease the recipient's ability to achieve
 or maintain reasonable functional ability in performing daily
 activities; or
 (4)  the drug that is subject to the step therapy
 protocol was prescribed for the recipient's condition while
 enrolled in a managed care plan offered by the recipient's current
 managed care organization or while enrolled in a managed care plan
 offered by a previous managed care organization and the recipient
 is stable on the drug.
 (d)  Except as provided by Subsection (e), if a managed care
 organization does not deny an exception request described by
 Subsection (b) before 72 hours after the managed care organization
 receives the request, the request is considered granted.
 (e)  If a written statement described by Subsection (c) also
 states that the prescribing provider reasonably believes that
 denial of the request makes the death of or serious harm to the
 recipient probable, the request is considered granted if the
 managed care organization does not deny the request before 24 hours
 after the managed care organization receives the request.
 Sec. 533.054.  CONTINUITY OF CARE.  A managed care
 organization shall provide coverage to a recipient who enrolls in a
 managed care plan offered by the managed care organization or
 transfers to a managed care plan offered by the managed care
 organization from a managed care plan offered by another managed
 care organization for a prescription drug prescribed for the
 recipient before the enrollment or transfer for a 90-day period
 following the date of the enrollment or transfer, regardless of
 whether the prescription drug is on the managed care organization's
 preferred drug list.
 Sec. 533.055.  ACCESS TO INFORMATION REGARDING PRESCRIPTION
 DRUG REBATES, PRICING, AND NEGOTIATIONS.  (a)  The commission may
 require the submission of and review information obtained or
 maintained by a managed care organization regarding prescription
 drug rebate negotiations or a supplemental Medicaid or other rebate
 agreement, including the rebate amount, rebate percentage, and
 manufacturer or labeler pricing.
 (b)  Information described by Subsection (a) that a managed
 care organization submits to the commission as required by the
 commission is confidential and not subject to disclosure under
 Chapter 552.
 (c)  Subsection (b) does not:
 (1)  authorize the commission to withhold from
 individual members, agencies, or committees of the legislature for
 use for legislative purposes information described by Subsection
 (a) that a managed care organization submits to the commission; or
 (2)  affect the applicability of Section 552.008.
 Sec. 533.056.  PREFERRED DRUG LIST.  A managed care
 organization shall provide for the distribution of current copies
 of the managed care organization's preferred drug list by posting
 the list on the managed care organization's Internet website.
 Sec. 533.057.  PRIOR AUTHORIZATION FOR CERTAIN PRESCRIPTION
 DRUGS. (a)  Except as provided by Subsection (b), a managed care
 organization may not require prior authorization for prescription
 drugs that, as determined by the commission, are used to treat
 patients with illnesses that:
 (1)  are life-threatening;
 (2)  are chronic; and
 (3)  require complex medical management strategies.
 (b)  Subsection (a) applies only to a drug that is prescribed
 for a use approved by the United States Food and Drug
 Administration.  A managed care organization may require prior
 authorization for a drug prescribed for a use that is not approved
 by the United States Food and Drug Administration.
 (c)  Once every 10 years, the commission shall conduct a
 study to evaluate and determine the classes of prescription drugs
 for which prior authorizations are prohibited under Subsection (a).
 (d)  A managed care organization shall ensure that a drug
 prescribed before the managed care organization implements a prior
 authorization requirement for that drug is not subject to the prior
 authorization requirement until the earlier of:
 (1)  the date the recipient exhausts the prescription,
 including any authorized refills; or
 (2)  the expiration of a period specified by the
 managed care organization.
 SECTION 2.  Not later than September 1, 2018, the Health and
 Human Services Commission shall conduct the initial study required
 by Section 533.057(c), Government Code, as added by this Act.
 SECTION 3.  If before implementing any provision of this Act
 a state agency determines that a waiver or authorization from a
 federal agency is necessary for implementation of that provision,
 the agency affected by the provision shall request the waiver or
 authorization and may delay implementing that provision until the
 waiver or authorization is granted.
 SECTION 4.  This Act takes effect September 1, 2017.