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FOR IMMEDIATE RELEASE
April 03, 2003
Contact: James Bernsen (512) 463-0630
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Committee passes Delisi bills, state to save $114 million in pharmaceutical costs
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AUSTIN -- The House Committee on State Health Care Expenditures passed two bills by Rep. Dianne White Delisi, District 55, which will save the state an estimated $114 million over the next biennium.
House Bill 1804 establishes a preferred drug list for Medicaid that balances clinical effectiveness and cost of drugs. The bill establishes a Medical Assistance Pharmaceutical and Therapeutics Committee to review drugs for inclusion on the list.
The bill, however, exempts certain diseases for which only a limited number of drugs are available, and allows doctors to prescribe drugs not on the list which are deemed to be medically necessary.
"Prescription drug costs are arguably the biggest driver of health care costs in America," Delisi said. "Many of the very expensive drugs prescribed by Medicaid doctors have cheaper substitutes that are comparable in quality and effectiveness. This bill would require the use of those drugs unless a doctor determines that another drug is necessary for the health of the patient."
The committee also passed House Bill 1744, which tightens controls on existing preferred drug lists in effect in the Teachers Retirement System and Employee Retirement System health plans.
House Bill 1804 would save the state $26.5 million the first year and $64.3 million the following year. House Bill 1744 would save the state $7.7 million in 2004 and $15.5 million in 2005.
"In a time when many are talking about budget cuts, these are real budget savings to the state," Delisi said. "Health care costs are the fastest-growing section of the Texas budget - on pace to surpass education. We must do something now to bring these costs under control. These bills are a good step toward that goal."
In addition to the two bills passed out of committee, the full House on Tuesday passed HB 1735, which establishes a disease management program in state-funded insurance plans, which will save the state $4 million in the 2004-2005 biennium.
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