Program Overview

In 2019, the 86th Texas Legislature passed House Bill 2536, relating to drug cost transparency. HB 2536 added new Chapter 441, Drug Cost Transparency, to the Texas Health and Safety Code. Chapter 441 requires pharmaceutical drug manufacturers to report to the Health and Human Services Commission (HHSC) the current wholesale acquisition cost (WAC) of U.S. Food and Drug Administration-approved drugs sold in or into Texas. Pharmaceutical drug manufacturers also are required to separately report specific information related to WAC increases. Drug cost information will be available to the public on this website.

HB 2536 also made changes to the Texas Insurance Code regarding health benefit plan issuers and pharmacy benefit managers. This part of the legislation is being implemented by the Texas Department of Insurance (TDI). Please contact TDI for information on this portion of the new law.

Implementation

HHSC and Texas Department of State Health Services (DSHS) are implementing the drug cost reporting requirements in phases to allow pharmaceutical drug manufacturers time to gather and submit the required information.

The first phase of the implementation, annual WAC reporting from prescription drug manufacturers, is now complete. HHSC has collected the January 1, 2020 wholesale acquisition cost (WAC) cost information on all United States Food and Drug Administration-approved prescription drugs sold in or into Texas from pharmaceutical drug manufacturers. That information is now posted on this website. HHSC is preparing the next phase of data collection related to prescription drugs that have increased in price for any prescription drugs costing $100 or more for a one month supply per specifications outlined in Chapter 441, ยง441.002 (c).