1 | 1 | | 88R22472 KBB-D |
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2 | 2 | | By: Smithee H.B. No. 1754 |
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3 | 3 | | Substitute the following for H.B. No. 1754: |
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4 | 4 | | By: Oliverson C.S.H.B. No. 1754 |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | A BILL TO BE ENTITLED |
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8 | 8 | | AN ACT |
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9 | 9 | | relating to the disclosure of certain prescription drug information |
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10 | 10 | | by a health benefit plan. |
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11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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12 | 12 | | SECTION 1. Chapter 1369, Insurance Code, is amended by |
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13 | 13 | | adding Subchapter B-2 to read as follows: |
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14 | 14 | | SUBCHAPTER B-2. DISCLOSURE OF CERTAIN PRESCRIPTION DRUG |
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15 | 15 | | INFORMATION SPECIFIED BY DRUG FORMULARY |
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16 | 16 | | Sec. 1369.091. DEFINITIONS. In this subchapter: |
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17 | 17 | | (1) "Cost-sharing information" means the actual |
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18 | 18 | | out-of-pocket amount an enrollee is required to pay a dispensing |
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19 | 19 | | pharmacy or prescribing provider for a prescription drug under the |
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20 | 20 | | enrollee's health benefit plan. |
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21 | 21 | | (2) "Drug formulary," "enrollee," and "prescription |
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22 | 22 | | drug" have the meanings assigned by Section 1369.051. |
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23 | 23 | | (3) "Standard API" means an application interface that |
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24 | 24 | | meets the requirements of an applicable American National Standards |
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25 | 25 | | Institute (ANSI) accredited standard to conform to standards |
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26 | 26 | | adopted under 45 C.F.R. Section 170.215. |
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27 | 27 | | Sec. 1369.092. APPLICABILITY OF SUBCHAPTER. (a) This |
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28 | 28 | | subchapter applies only to a health benefit plan that provides |
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29 | 29 | | benefits for medical or surgical expenses incurred as a result of a |
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30 | 30 | | health condition, accident, or sickness, including an individual, |
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31 | 31 | | group, blanket, or franchise insurance policy or insurance |
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32 | 32 | | agreement, a group hospital service contract, or an individual or |
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33 | 33 | | group evidence of coverage or similar coverage document that is |
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34 | 34 | | offered by: |
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35 | 35 | | (1) an insurance company; |
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36 | 36 | | (2) a group hospital service corporation operating |
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37 | 37 | | under Chapter 842; |
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38 | 38 | | (3) a health maintenance organization operating under |
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39 | 39 | | Chapter 843; |
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40 | 40 | | (4) an approved nonprofit health corporation that |
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41 | 41 | | holds a certificate of authority under Chapter 844; |
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42 | 42 | | (5) a multiple employer welfare arrangement that holds |
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43 | 43 | | a certificate of authority under Chapter 846; |
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44 | 44 | | (6) a stipulated premium company operating under |
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45 | 45 | | Chapter 884; |
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46 | 46 | | (7) a fraternal benefit society operating under |
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47 | 47 | | Chapter 885; |
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48 | 48 | | (8) a Lloyd's plan operating under Chapter 941; or |
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49 | 49 | | (9) an exchange operating under Chapter 942. |
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50 | 50 | | (b) Notwithstanding any other law, this subchapter applies |
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51 | 51 | | to: |
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52 | 52 | | (1) a small employer health benefit plan subject to |
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53 | 53 | | Chapter 1501, including coverage provided through a health group |
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54 | 54 | | cooperative under Subchapter B of that chapter; |
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55 | 55 | | (2) a standard health benefit plan issued under |
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56 | 56 | | Chapter 1507; |
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57 | 57 | | (3) a basic coverage plan under Chapter 1551; |
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58 | 58 | | (4) a basic plan under Chapter 1575; |
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59 | 59 | | (5) a primary care coverage plan under Chapter 1579; |
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60 | 60 | | (6) a plan providing basic coverage under Chapter |
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61 | 61 | | 1601; |
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62 | 62 | | (7) nonprofit agricultural organization health |
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63 | 63 | | benefits offered by a nonprofit agricultural organization under |
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64 | 64 | | Chapter 1682; |
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65 | 65 | | (8) alternative health benefit coverage offered by a |
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66 | 66 | | subsidiary of the Texas Mutual Insurance Company under Subchapter |
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67 | 67 | | M, Chapter 2054; |
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68 | 68 | | (9) a regional or local health care program operated |
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69 | 69 | | under Section 75.104, Health and Safety Code; and |
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70 | 70 | | (10) a self-funded health benefit plan sponsored by a |
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71 | 71 | | professional employer organization under Chapter 91, Labor Code. |
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72 | 72 | | Sec. 1369.093. EXCEPTIONS TO APPLICABILITY OF SUBCHAPTER. |
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73 | 73 | | This subchapter does not apply to an issuer or provider of health |
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74 | 74 | | benefits under or a pharmacy benefit manager administering pharmacy |
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75 | 75 | | benefits under: |
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76 | 76 | | (1) the state Medicaid program, including the Medicaid |
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77 | 77 | | managed care program operated under Chapter 533, Government Code; |
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78 | 78 | | (2) the child health plan program under Chapter 62, |
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79 | 79 | | Health and Safety Code; |
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80 | 80 | | (3) the TRICARE military health system; or |
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81 | 81 | | (4) a workers' compensation insurance policy or other |
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82 | 82 | | form of providing medical benefits under Title 5, Labor Code. |
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83 | 83 | | Sec. 1369.094. DISCLOSURE OF PRESCRIPTION DRUG |
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84 | 84 | | INFORMATION. (a) This section applies only with respect to a |
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85 | 85 | | prescription drug covered under a health benefit plan's pharmacy |
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86 | 86 | | benefit. |
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87 | 87 | | (b) A health benefit plan issuer that covers prescription |
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88 | 88 | | drugs shall provide information regarding a covered prescription |
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89 | 89 | | drug to an enrollee or the enrollee's prescribing provider on |
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90 | 90 | | request. The information provided must include the issuer's drug |
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91 | 91 | | formulary and, for the prescription drug and any formulary |
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92 | 92 | | alternative: |
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93 | 93 | | (1) the enrollee's eligibility; |
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94 | 94 | | (2) cost-sharing information, including any |
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95 | 95 | | deductible, copayment, or coinsurance, which must: |
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96 | 96 | | (A) be consistent with cost-sharing requirements |
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97 | 97 | | under the enrollee's plan; |
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98 | 98 | | (B) be accurate at the time the cost-sharing |
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99 | 99 | | information is provided; and |
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100 | 100 | | (C) include any variance in cost-sharing based on |
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101 | 101 | | the patient's preferred dispensing retail or mail-order pharmacy or |
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102 | 102 | | the prescribing provider; and |
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103 | 103 | | (3) applicable utilization management requirements. |
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104 | 104 | | (c) In providing the information required under Subsection |
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105 | 105 | | (b), a health benefit plan issuer shall: |
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106 | 106 | | (1) respond in real time to a request made through a |
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107 | 107 | | standard API; |
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108 | 108 | | (2) allow the use of an integrated technology or |
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109 | 109 | | service as necessary to provide the required information; |
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110 | 110 | | (3) ensure that the information provided is current no |
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111 | 111 | | later than one business day after the date a change is made; and |
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112 | 112 | | (4) provide the information if the request is made |
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113 | 113 | | using the drug's unique billing code and National Drug Code. |
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114 | 114 | | (d) A health benefit plan issuer may not: |
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115 | 115 | | (1) deny or delay a response to a request for |
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116 | 116 | | information under Subsection (b) for the purpose of blocking the |
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117 | 117 | | release of the information; |
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118 | 118 | | (2) restrict a prescribing provider from |
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119 | 119 | | communicating to the enrollee the information provided under |
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120 | 120 | | Subsection (b), information about the cash price of the drug, or any |
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121 | 121 | | additional information on any lower cost or clinically appropriate |
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122 | 122 | | alternative drug, whether or not the drug is covered under the |
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123 | 123 | | enrollee's plan; |
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124 | 124 | | (3) except as required by law, interfere with, |
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125 | 125 | | prevent, or materially discourage access to or the exchange or use |
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126 | 126 | | of the information provided under Subsection (b), including by: |
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127 | 127 | | (A) charging a fee to access the information; |
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128 | 128 | | (B) not responding to a request within the time |
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129 | 129 | | required by this section; or |
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130 | 130 | | (C) instituting a consent requirement for an |
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131 | 131 | | enrollee to access the information; or |
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132 | 132 | | (4) penalize, including by taking any action intended |
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133 | 133 | | to punish or discourage future similar behavior by the prescribing |
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134 | 134 | | provider, a prescribing provider for: |
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135 | 135 | | (A) disclosing the information provided under |
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136 | 136 | | Subsection (b); or |
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137 | 137 | | (B) prescribing, administering, or ordering a |
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138 | 138 | | lower cost or clinically appropriate alternative drug. |
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139 | 139 | | (e) A health benefit plan issuer with fewer than 10,000 |
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140 | 140 | | enrollees may: |
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141 | 141 | | (1) register with the department to receive an |
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142 | 142 | | additional 12 months after the effective date of this subchapter to |
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143 | 143 | | comply with the requirements of this subchapter; and |
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144 | 144 | | (2) after the additional 12 months provided for in |
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145 | 145 | | Subdivision (1), request from the department a temporary exception |
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146 | 146 | | from one or more requirements of this section by submitting a report |
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147 | 147 | | to the department that demonstrates that compliance would impose an |
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148 | 148 | | unreasonable cost relative to the public value that would be gained |
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149 | 149 | | from full compliance. |
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150 | 150 | | SECTION 2. The changes in law made by this Act apply only to |
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151 | 151 | | a health benefit plan delivered, issued for delivery, or renewed on |
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152 | 152 | | or after January 1, 2025. |
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153 | 153 | | SECTION 3. This Act takes effect September 1, 2023. |
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