Texas Register

TITLE 28 INSURANCE
PART 2TEXAS WORKERS' COMPENSATION COMMISSION
CHAPTER 134BENEFITS--GUIDELINES FOR MEDICAL SERVICES, CHARGES, AND PAYMENTS
SUBCHAPTER FPHARMACEUTICAL BENEFITS
RULE §134.503Reimbursement Methodology
ISSUE 10/31/2003
ACTION Proposed
Preamble Texas Admin Code Rule

(a)The maximum allowable reimbursement (MAR) for prescription drugs shall be the lesser of:

  (1)The provider's usual and customary charge for the same or similar service;

  (2)The fees established by the following formulas based on the average wholesale price (AWP) determined by utilizing a nationally recognized pharmaceutical reimbursement system (e.g. Redbook, First Data Bank Services) in effect on the day the prescription drug is dispensed.

    (A)Generic drugs: ((AWP per unit) x (number of units) x 1.25) + $4.00 dispensing fee = MAR;

    (B)Brand name drugs: ((AWP per unit) x (number of units) x 1.09) + $4.00 dispensing fee = MAR;

    (C)A compounding fee of $15 per compound shall be added for compound drugs; or

  (3)A negotiated or contract amount.

(b)When the doctor has written a prescription for a generic [prescription] drug or a prescription that does not require the use of a brand-name drug in accordance with §134.502(a)(3), reimbursement shall be as follows: [the pharmacist shall dispense and be reimbursed for the generic pharmaceutical medication.]

   (1)the pharmacist shall dispense the generic drug as prescribed and shall be reimbursed the fee established for the generic drug in accordance with subsection (a) of this section; or

   (2)when an injured employee chooses to receive a brand-name drug instead of the prescribed generic drug, the pharmacist shall dispense the brand-name drug as requested and shall be reimbursed:

    (A)by the insurance carrier, the fee established for the prescribed generic drug in accordance with subsection (a) of this section; and

    (B)by the employee, the cost difference between the fee established for the generic drug and the fee established for the brand-name drug in accordance with §134.503(a)(2)of this title.

(c)When the doctor has written a prescription for a brand-name drug in accordance with §134.502(a)(3), reimbursement shall be in accordance with subsection (a) of this section.

(d)[(c)] Reimbursement for over-the-counter medications shall be the retail price of the lowest package quantity reasonably available that will fill the prescription.

(e)[(d)] This section applies to the dispensing of all drugs except inpatient drugs and parenteral drugs.

(f)[(e)] Upon request by the provider, the insurance carrier shall disclose the source of the AWP used.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on October 17, 2003

TRD-200306901

Susan Cory

General Counsel

Texas Workers' Compensation Commission

Earliest possible date of adoption: November 30, 2003

For further information, please call: (512) 804-4287



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