LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 28, 2023 TO: Honorable Sam Harless, Chair, House Committee on Health Care Reform, Select FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3286 by Klick (relating to certain prescription drug benefits under the Medicaid managed care program.), Committee Report 1st House, Substituted The fiscal implications of the bill cannot be determined due to the uncertainty regarding the number of clients who would shift to non-preferred drugs as a result of exceptions to the preferred drug list. The bill would establish exceptions to the preferred drug list adhered to by Medicaid managed care organizations. According to the Health and Human Services Commission, the bill could result in a reduction of federal and supplemental rebates due to a shift towards higher net cost non-preferred drugs. However, due to a lack of information regarding the effects on utilization, the fiscal impact cannot be determined at this time. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 529 Health and Human Services Commission LBB Staff: b > td > JMc, NPe, ER, CST LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 28, 2023 TO: Honorable Sam Harless, Chair, House Committee on Health Care Reform, Select FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3286 by Klick (relating to certain prescription drug benefits under the Medicaid managed care program.), Committee Report 1st House, Substituted TO: Honorable Sam Harless, Chair, House Committee on Health Care Reform, Select FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB3286 by Klick (relating to certain prescription drug benefits under the Medicaid managed care program.), Committee Report 1st House, Substituted Honorable Sam Harless, Chair, House Committee on Health Care Reform, Select Honorable Sam Harless, Chair, House Committee on Health Care Reform, Select Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB3286 by Klick (relating to certain prescription drug benefits under the Medicaid managed care program.), Committee Report 1st House, Substituted HB3286 by Klick (relating to certain prescription drug benefits under the Medicaid managed care program.), Committee Report 1st House, Substituted The fiscal implications of the bill cannot be determined due to the uncertainty regarding the number of clients who would shift to non-preferred drugs as a result of exceptions to the preferred drug list. The fiscal implications of the bill cannot be determined due to the uncertainty regarding the number of clients who would shift to non-preferred drugs as a result of exceptions to the preferred drug list. The bill would establish exceptions to the preferred drug list adhered to by Medicaid managed care organizations. According to the Health and Human Services Commission, the bill could result in a reduction of federal and supplemental rebates due to a shift towards higher net cost non-preferred drugs. However, due to a lack of information regarding the effects on utilization, the fiscal impact cannot be determined at this time. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: b > td > 529 Health and Human Services Commission 529 Health and Human Services Commission LBB Staff: b > td > JMc, NPe, ER, CST JMc, NPe, ER, CST