Texas House Bill HB4422

Texas 2025 - 89th Regular

• Filed: 3/11/25

Caption

Relating to discriminatory practices by a health benefit plan issuer, pharmacy benefit manager, and third-party payor with respect to certain entities participating in a federal drug discount program.

Impact

If enacted, HB4422 will significantly affect the Insurance Code by adding a new subchapter dedicated to prohibiting discrimination based on 340B participation. The implications of this bill may extend to various health system stakeholders, as it will prohibit actions that could hinder the ability of covered entities to provide access to affordable medications. This legislative move seeks to uphold fairness in drug reimbursement mechanisms, ultimately aiming to benefit vulnerable populations served by these entities.

Summary

House Bill 4422 addresses discriminatory practices by health benefit plan issuers, pharmacy benefit managers, and third-party payors in relation to entities participating in the federal 340B drug discount program. Specifically, the bill aims to create a legal framework to ensure that covered entities in the 340B program are not subjected to unfair treatment compared to non-covered entities. This includes provisions to prevent discriminatory pricing practices that might disadvantage these entities in the procurement of prescription drugs.

Contention

Key points of contention surrounding HB4422 may arise from varying perspectives among health benefit plan issuers and pharmacy benefit managers. While proponents argue that the bill protects entities in the 340B program and enhances patient access to necessary medications, opponents may voice concerns about the operational and financial burdens that could result from increased regulatory oversight. The discourse may focus on how this balance of interests is handled and whether it appropriately addresses the potential impact on overall healthcare costs.

Texas Constitutional Statutes Affected

Insurance Code

• Chapter 1369. Benefits Related To Prescription Drugs And Devices And Related Services
  • Section: New Section

• Chapter 1501. Health Insurance Portability And Availability Act
  • Section: New Section

• Chapter 1507. Consumer Choice Of Benefits Plans
  • Section: New Section

• Chapter 1551. Texas Employees Group Benefits Act
  • Section: New Section

• Chapter 1575. Texas Public School Employees Group Benefits Program
  • Section: New Section

• Chapter 1579. Texas School Employees Uniform Group Health Coverage
  • Section: New Section

• Chapter 1601. Uniform Insurance Benefits Act For Employees Of The University Of Texas System And The Texas A&m University System
  • Section: New Section

• Chapter 1682. Health Benefits Provided By Certain Nonprofit Agricultural Organizations
  • Section: New Section

• Chapter 2054. Texas Mutual Insurance Company
  • Section: New Section

Business Organizations Code

• Chapter 22. Nonprofit Corporations
  • Section: New Section

Education Code

• Chapter 22. School District Employees And Volunteers
  • Section: New Section

Government Code

• Chapter 540. Medicaid Managed Care Program
  • Section: New Section

Health And Safety Code

• Chapter 62. Child Health Plan For Certain Low-income Children
  • Section: New Section

• Chapter 75. Regional Or Local Health Care Programs For Employees Of Small Employers
  • Section: 104

Labor Code

• Chapter 91. Professional Employer Organizations
  • Section: New Section

Local Government Code

• Chapter 157. Assistance, Benefits, And Working Conditions Of County Officers And Employees
  • Section: New Section

• Chapter 172. Texas Political Subdivisions Uniform Group Benefits Program
  • Section: New Section