Texas 2023 - 88th Regular

Texas Senate Bill SB622 Compare Versions

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11 S.B. No. 622
22
33
44 AN ACT
55 relating to the disclosure of certain prescription drug information
66 by a health benefit plan.
77 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
88 SECTION 1. Chapter 1369, Insurance Code, is amended by
99 adding Subchapter B-2 to read as follows:
1010 SUBCHAPTER B-2. DISCLOSURE OF CERTAIN PRESCRIPTION DRUG
1111 INFORMATION SPECIFIED BY DRUG FORMULARY
1212 Sec. 1369.091. DEFINITIONS. In this subchapter:
1313 (1) "Cost-sharing information" means the actual
1414 out-of-pocket amount an enrollee is required to pay a dispensing
1515 pharmacy or prescribing provider for a prescription drug under the
1616 enrollee's health benefit plan.
1717 (2) "Drug formulary," "enrollee," and "prescription
1818 drug" have the meanings assigned by Section 1369.051.
1919 (3) "Standard API" means an application interface that
2020 meets the requirements of an applicable American National Standards
2121 Institute (ANSI) accredited standard to conform to standards
2222 adopted under 45 C.F.R. Section 170.215.
2323 Sec. 1369.092. APPLICABILITY OF SUBCHAPTER. (a) This
2424 subchapter applies only to a health benefit plan that provides
2525 benefits for medical or surgical expenses incurred as a result of a
2626 health condition, accident, or sickness, including an individual,
2727 group, blanket, or franchise insurance policy or insurance
2828 agreement, a group hospital service contract, or an individual or
2929 group evidence of coverage or similar coverage document that is
3030 offered by:
3131 (1) an insurance company;
3232 (2) a group hospital service corporation operating
3333 under Chapter 842;
3434 (3) a health maintenance organization operating under
3535 Chapter 843;
3636 (4) an approved nonprofit health corporation that
3737 holds a certificate of authority under Chapter 844;
3838 (5) a multiple employer welfare arrangement that holds
3939 a certificate of authority under Chapter 846;
4040 (6) a stipulated premium company operating under
4141 Chapter 884;
4242 (7) a fraternal benefit society operating under
4343 Chapter 885;
4444 (8) a Lloyd's plan operating under Chapter 941; or
4545 (9) an exchange operating under Chapter 942.
4646 (b) Notwithstanding any other law, this subchapter applies
4747 to:
4848 (1) a small employer health benefit plan subject to
4949 Chapter 1501, including coverage provided through a health group
5050 cooperative under Subchapter B of that chapter;
5151 (2) a standard health benefit plan issued under
5252 Chapter 1507;
5353 (3) a basic coverage plan under Chapter 1551;
5454 (4) a basic plan under Chapter 1575;
5555 (5) a primary care coverage plan under Chapter 1579;
5656 (6) a plan providing basic coverage under Chapter
5757 1601;
5858 (7) alternative health benefit coverage offered by a
5959 subsidiary of the Texas Mutual Insurance Company under Subchapter
6060 M, Chapter 2054;
6161 (8) a regional or local health care program operated
6262 under Section 75.104, Health and Safety Code; and
6363 (9) a self-funded health benefit plan sponsored by a
6464 professional employer organization under Chapter 91, Labor Code.
6565 Sec. 1369.093. EXCEPTIONS TO APPLICABILITY OF SUBCHAPTER.
6666 This subchapter does not apply to an issuer or provider of health
6767 benefits under or a pharmacy benefit manager administering pharmacy
6868 benefits under:
6969 (1) the state Medicaid program, including the Medicaid
7070 managed care program operated under Chapter 533, Government Code;
7171 (2) the child health plan program under Chapter 62,
7272 Health and Safety Code;
7373 (3) the TRICARE military health system; or
7474 (4) a workers' compensation insurance policy or other
7575 form of providing medical benefits under Title 5, Labor Code.
7676 Sec. 1369.094. DISCLOSURE OF PRESCRIPTION DRUG
7777 INFORMATION. (a) This section applies only with respect to a
7878 prescription drug covered under a health benefit plan's pharmacy
7979 benefit.
8080 (b) A health benefit plan issuer that covers prescription
8181 drugs shall provide information regarding a covered prescription
8282 drug to an enrollee or the enrollee's prescribing provider on
8383 request. The information provided must include the issuer's drug
8484 formulary and, for the prescription drug and any formulary
8585 alternative:
8686 (1) the enrollee's eligibility;
8787 (2) cost-sharing information, including any
8888 deductible, copayment, or coinsurance, which must:
8989 (A) be consistent with cost-sharing requirements
9090 under the enrollee's plan;
9191 (B) be accurate at the time the cost-sharing
9292 information is provided; and
9393 (C) include any variance in cost-sharing based on
9494 the patient's preferred dispensing retail or mail-order pharmacy or
9595 the prescribing provider; and
9696 (3) applicable utilization management requirements.
9797 (c) In providing the information required under Subsection
9898 (b), a health benefit plan issuer shall:
9999 (1) respond in real time to a request made through a
100100 standard API;
101101 (2) allow the use of an integrated technology or
102102 service as necessary to provide the required information;
103103 (3) ensure that the information provided is current no
104104 later than one business day after the date a change is made; and
105105 (4) provide the information if the request is made
106106 using the drug's unique billing code and National Drug Code.
107107 (d) A health benefit plan issuer may not:
108108 (1) deny or delay a response to a request for
109109 information under Subsection (b) for the purpose of blocking the
110110 release of the information;
111111 (2) restrict a prescribing provider from
112112 communicating to the enrollee the information provided under
113113 Subsection (b), information about the cash price of the drug, or any
114114 additional information on any lower cost or clinically appropriate
115115 alternative drug, whether or not the drug is covered under the
116116 enrollee's plan;
117117 (3) except as required by law, interfere with,
118118 prevent, or materially discourage access to or the exchange or use
119119 of the information provided under Subsection (b), including by:
120120 (A) charging a fee to access the information;
121121 (B) not responding to a request within the time
122122 required by this section; or
123123 (C) instituting a consent requirement for an
124124 enrollee to access the information; or
125125 (4) penalize, including by taking any action intended
126126 to punish or discourage future similar behavior by the prescribing
127127 provider, a prescribing provider for:
128128 (A) disclosing the information provided under
129129 Subsection (b); or
130130 (B) prescribing, administering, or ordering a
131131 lower cost or clinically appropriate alternative drug.
132132 (e) A health benefit plan issuer with fewer than 10,000
133133 enrollees may:
134134 (1) register with the department to receive an
135135 additional 12 months after the effective date of this subchapter to
136136 comply with the requirements of this subchapter; and
137137 (2) after the additional 12 months provided for in
138138 Subdivision (1), request from the department a temporary exception
139139 from one or more requirements of this section by submitting a report
140140 to the department that demonstrates that compliance would impose an
141141 unreasonable cost relative to the public value that would be gained
142142 from full compliance.
143143 SECTION 2. The changes in law made by this Act apply only to
144144 a health benefit plan delivered, issued for delivery, or renewed on
145145 or after January 1, 2025.
146146 SECTION 3. This Act takes effect September 1, 2023.
147147 ______________________________ ______________________________
148148 President of the Senate Speaker of the House
149149 I hereby certify that S.B. No. 622 passed the Senate on
150150 April 27, 2023, by the following vote: Yeas 31, Nays 0; and that
151151 the Senate concurred in House amendment on May 16, 2023, by the
152152 following vote: Yeas 30, Nays 1.
153153 ______________________________
154154 Secretary of the Senate
155155 I hereby certify that S.B. No. 622 passed the House, with
156156 amendment, on May 10, 2023, by the following vote: Yeas 133,
157157 Nays 7, two present not voting.
158158 ______________________________
159159 Chief Clerk of the House
160160 Approved:
161161 ______________________________
162162 Date
163163 ______________________________
164164 Governor