Testimony On SB 1113: PDL Carve-Out

The Texas Association of Health Plans is neutral on SB 1113. SB 1113 repeals the planned implementation of management of the state’s preferred drug list (PDL) by Medicaid managed care organizations (MCOs), effectively allowing HHSC to permanently control the state’s drug formulary.

Texas has delayed the adoption of the state’s drug formulary by health plans for 10 years, prioritizing rebates over improved patient care and taxpayer savings. Under the state’s management of the drug formulary, the PDL frequently changes based on the amount the state can receive in rebates on a drug, known as “rebate chasing.” It also means the state’s preferred list of drugs looks very different from what patients, pharmacists, and doctors are used to prescribing.

Read TAHP’s full written testimony.

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