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TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 21TRADE PRACTICES
SUBCHAPTER VPHARMACY BENEFITS
RULE §21.3020Definitions; Prescription Drug Formulary
Texas Register

The following words and terms, when used in §§21.3020-21.3023 of this subchapter (relating to prescription drug formulary benefits), shall have the following meanings, unless the context clearly indicates otherwise:

  (1) Adverse determination--A determination upon utilization review that the health care services furnished or proposed to be furnished to an enrollee are not medically necessary or not appropriate.

  (2) Contracted benefit level--The copayment amount or coinsurance percentage established at the beginning of the current plan year and set forth in the coverage documentation.

  (3) Coverage documentation--A policy, certificate of coverage, evidence of coverage, enrollee handbook, or a plan document distributed by an issuer, or its delegated entity, to an enrollee or to the master contract holder, for distribution to enrollees.

  (4) Delegated entity--An entity, which by itself or through one or more entities, including but not limited to third-party administrators and pharmacy benefit managers, as those terms are defined in Insurance Code Article 21.07-6, which provides reimbursement for covered services or undertakes to arrange for or provide benefits or services to an enrollee under a group health benefit plan, and which performs on behalf of the issuer of a group health benefit plan, any function regulated by §§21.3020 - 21.3023 of this subchapter.

  (5) Drug formulary--A list of drugs for which a health benefit plan provides coverage, approves payment, or encourages or offers incentives for physicians or other health care providers to prescribe.

  (6) Enrollee--As defined in Insurance Code Article 21.52J.

  (7) Group health benefit plan--As described in Insurance Code Article 21.52J. This term includes group health benefit plans providing coverage for pharmacy benefits only.

  (8) Issuer--Those entities identified in Insurance Code Article 21.52J, Sec. 2(a)(1)-(8).

  (9) Multi-tier formulary--A drug formulary with benefit levels in addition to generic and brand name prescription drug benefit levels.

  (10) Plain language--As prescribed in §3.602 of this title (relating to Plain Language Requirements).

  (11) Plan year--A 365-day period that begins on the date the group health benefit plan's coverage commences, or a period of one full calendar year as defined in the group health benefit plan's coverage documentation.

  (12) Prescription drug--As defined in Insurance Code Article 21.52J.

  (13) Renewal date--For each group health benefit plan, the earlier of the date specified in the coverage documentation for renewal or the policy anniversary date. In determining the renewal date for association or multiple employer trust group health benefit plans, issuers may use the date specified for renewal or the policy anniversary date of either the master contract, plan document, or certificate of coverage of each group in the association or trust. Issuers shall use the same method of determining renewal dates for all group health benefit plans.


Source Note: The provisions of this §21.3020 adopted to be effective December 20, 2000, 25 TexReg 12437

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