Texas 2023 - 88th Regular

Texas House Bill HB1754 Compare Versions

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11 88R22472 KBB-D
22 By: Smithee H.B. No. 1754
33 Substitute the following for H.B. No. 1754:
44 By: Oliverson C.S.H.B. No. 1754
55
66
77 A BILL TO BE ENTITLED
88 AN ACT
99 relating to the disclosure of certain prescription drug information
1010 by a health benefit plan.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Chapter 1369, Insurance Code, is amended by
1313 adding Subchapter B-2 to read as follows:
1414 SUBCHAPTER B-2. DISCLOSURE OF CERTAIN PRESCRIPTION DRUG
1515 INFORMATION SPECIFIED BY DRUG FORMULARY
1616 Sec. 1369.091. DEFINITIONS. In this subchapter:
1717 (1) "Cost-sharing information" means the actual
1818 out-of-pocket amount an enrollee is required to pay a dispensing
1919 pharmacy or prescribing provider for a prescription drug under the
2020 enrollee's health benefit plan.
2121 (2) "Drug formulary," "enrollee," and "prescription
2222 drug" have the meanings assigned by Section 1369.051.
2323 (3) "Standard API" means an application interface that
2424 meets the requirements of an applicable American National Standards
2525 Institute (ANSI) accredited standard to conform to standards
2626 adopted under 45 C.F.R. Section 170.215.
2727 Sec. 1369.092. APPLICABILITY OF SUBCHAPTER. (a) This
2828 subchapter applies only to a health benefit plan that provides
2929 benefits for medical or surgical expenses incurred as a result of a
3030 health condition, accident, or sickness, including an individual,
3131 group, blanket, or franchise insurance policy or insurance
3232 agreement, a group hospital service contract, or an individual or
3333 group evidence of coverage or similar coverage document that is
3434 offered by:
3535 (1) an insurance company;
3636 (2) a group hospital service corporation operating
3737 under Chapter 842;
3838 (3) a health maintenance organization operating under
3939 Chapter 843;
4040 (4) an approved nonprofit health corporation that
4141 holds a certificate of authority under Chapter 844;
4242 (5) a multiple employer welfare arrangement that holds
4343 a certificate of authority under Chapter 846;
4444 (6) a stipulated premium company operating under
4545 Chapter 884;
4646 (7) a fraternal benefit society operating under
4747 Chapter 885;
4848 (8) a Lloyd's plan operating under Chapter 941; or
4949 (9) an exchange operating under Chapter 942.
5050 (b) Notwithstanding any other law, this subchapter applies
5151 to:
5252 (1) a small employer health benefit plan subject to
5353 Chapter 1501, including coverage provided through a health group
5454 cooperative under Subchapter B of that chapter;
5555 (2) a standard health benefit plan issued under
5656 Chapter 1507;
5757 (3) a basic coverage plan under Chapter 1551;
5858 (4) a basic plan under Chapter 1575;
5959 (5) a primary care coverage plan under Chapter 1579;
6060 (6) a plan providing basic coverage under Chapter
6161 1601;
6262 (7) nonprofit agricultural organization health
6363 benefits offered by a nonprofit agricultural organization under
6464 Chapter 1682;
6565 (8) alternative health benefit coverage offered by a
6666 subsidiary of the Texas Mutual Insurance Company under Subchapter
6767 M, Chapter 2054;
6868 (9) a regional or local health care program operated
6969 under Section 75.104, Health and Safety Code; and
7070 (10) a self-funded health benefit plan sponsored by a
7171 professional employer organization under Chapter 91, Labor Code.
7272 Sec. 1369.093. EXCEPTIONS TO APPLICABILITY OF SUBCHAPTER.
7373 This subchapter does not apply to an issuer or provider of health
7474 benefits under or a pharmacy benefit manager administering pharmacy
7575 benefits under:
7676 (1) the state Medicaid program, including the Medicaid
7777 managed care program operated under Chapter 533, Government Code;
7878 (2) the child health plan program under Chapter 62,
7979 Health and Safety Code;
8080 (3) the TRICARE military health system; or
8181 (4) a workers' compensation insurance policy or other
8282 form of providing medical benefits under Title 5, Labor Code.
8383 Sec. 1369.094. DISCLOSURE OF PRESCRIPTION DRUG
8484 INFORMATION. (a) This section applies only with respect to a
8585 prescription drug covered under a health benefit plan's pharmacy
8686 benefit.
8787 (b) A health benefit plan issuer that covers prescription
8888 drugs shall provide information regarding a covered prescription
8989 drug to an enrollee or the enrollee's prescribing provider on
9090 request. The information provided must include the issuer's drug
9191 formulary and, for the prescription drug and any formulary
9292 alternative:
9393 (1) the enrollee's eligibility;
9494 (2) cost-sharing information, including any
9595 deductible, copayment, or coinsurance, which must:
9696 (A) be consistent with cost-sharing requirements
9797 under the enrollee's plan;
9898 (B) be accurate at the time the cost-sharing
9999 information is provided; and
100100 (C) include any variance in cost-sharing based on
101101 the patient's preferred dispensing retail or mail-order pharmacy or
102102 the prescribing provider; and
103103 (3) applicable utilization management requirements.
104104 (c) In providing the information required under Subsection
105105 (b), a health benefit plan issuer shall:
106106 (1) respond in real time to a request made through a
107107 standard API;
108108 (2) allow the use of an integrated technology or
109109 service as necessary to provide the required information;
110110 (3) ensure that the information provided is current no
111111 later than one business day after the date a change is made; and
112112 (4) provide the information if the request is made
113113 using the drug's unique billing code and National Drug Code.
114114 (d) A health benefit plan issuer may not:
115115 (1) deny or delay a response to a request for
116116 information under Subsection (b) for the purpose of blocking the
117117 release of the information;
118118 (2) restrict a prescribing provider from
119119 communicating to the enrollee the information provided under
120120 Subsection (b), information about the cash price of the drug, or any
121121 additional information on any lower cost or clinically appropriate
122122 alternative drug, whether or not the drug is covered under the
123123 enrollee's plan;
124124 (3) except as required by law, interfere with,
125125 prevent, or materially discourage access to or the exchange or use
126126 of the information provided under Subsection (b), including by:
127127 (A) charging a fee to access the information;
128128 (B) not responding to a request within the time
129129 required by this section; or
130130 (C) instituting a consent requirement for an
131131 enrollee to access the information; or
132132 (4) penalize, including by taking any action intended
133133 to punish or discourage future similar behavior by the prescribing
134134 provider, a prescribing provider for:
135135 (A) disclosing the information provided under
136136 Subsection (b); or
137137 (B) prescribing, administering, or ordering a
138138 lower cost or clinically appropriate alternative drug.
139139 (e) A health benefit plan issuer with fewer than 10,000
140140 enrollees may:
141141 (1) register with the department to receive an
142142 additional 12 months after the effective date of this subchapter to
143143 comply with the requirements of this subchapter; and
144144 (2) after the additional 12 months provided for in
145145 Subdivision (1), request from the department a temporary exception
146146 from one or more requirements of this section by submitting a report
147147 to the department that demonstrates that compliance would impose an
148148 unreasonable cost relative to the public value that would be gained
149149 from full compliance.
150150 SECTION 2. The changes in law made by this Act apply only to
151151 a health benefit plan delivered, issued for delivery, or renewed on
152152 or after January 1, 2025.
153153 SECTION 3. This Act takes effect September 1, 2023.