HBA-TBM H.B. 1929 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1929
By: Deshotel
Insurance
4/1/2001
Introduced



BACKGROUND AND PURPOSE 

Many health care plans that provide benefits for prescription drugs (drugs)
offer their policy holders the option of ordering the drugs by mail.  In
some cases, the convenience of ordering by mail convinces a policy holder
to obtain drugs by that method.  In other cases, a policy holder may prefer
to fill prescriptions at a local pharmacy.  Under current law, a health
care provider may discourage the use of local pharmacies by issuing
incentives to policy holders who choose to fill prescriptions by mail.
House Bill 1929 prevents health care plans from discriminating against the
use of local pharmacies.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1929 amends the Insurance Code to provide that a health benefit
plan that provides benefits for prescription drugs must provide the same
prescription drugs under the same circumstances for prescription drugs not
obtained by mail order as for prescription drugs obtained by mail order.
The bill prohibits a health benefit plan from charging an amount for a
prescription drug not obtained by mail order that exceeds the amount
imposed for a prescription drug obtained by mail order.  An issuer of a
health benefit plan that violates this provision commits an unfair act in
the business of insurance.   

This Act applies only to a health benefit plan that is delivered, issued
for delivery, or renewed on or after January 1, 2002.   

EFFECTIVE DATE

September 1, 2001.