Amends TCA Title 47, Chapter 18; Title 53; Title 56; Title 63; Title 68 and Title 71.

Present law authorizes the department of health to develop and implement a prescription drug discount plan, which is known as “Volunteer Rx,” or, if the department of health deems appropriate, may contract for, pursuant to state purchasing laws, a prescription drug discount plan. The purpose of the plan is to assist in providing, when possible, cost savings on medications for uninsured Tennesseans, or for insured Tennesseans whose insurance does not provide for prescription drug coverage. Present law also authorizes the department to, if funding is made available through the general appropriations act, provide benefits through the prescription drug discount plan. This bill expands the Volunteer Rx plan to include discount plans that cover dental and vision services. The dental and vision plans and the operators of such plans will be subject to the requirements governing the prescription drug plans and operators of those plans under present law. Under present law, each member has the right to cancel membership in a plan within 30 days of joining the plan, and has the right to have refunded any and all membership fees paid during that initial membership. This bill adds an exception to the refund provision for a one-time nominal processing fee. This bill adds to the present law provisions, prohibition on an operator or marketer of a plan: (1) Describing or characterizing the discount plan as being insurance; (2) Using or approving for use in its cards or distributed materials the terms "health plan," "coverage," "copay," "copayments," "deductible," "preexisting conditions," "guaranteed issue," "premium," "PPO," "preferred provider organization," or other terms in a manner that could reasonably mislead an individual into believing that the discount plan is health insurance; (3) Making misleading, deceptive, or fraudulent representations regarding the discount or range of discounts offered by the discount plan; or (4) Paying pharmacies, dentists, or vision care providers fees for healthcare services or collect or accept money from a member to pay a pharmacy, dentist, or vision care provider for healthcare services provided under the discount plan, unless the operator or marketer has an active certificate of authority to act as a third party administrator. This bill requires an operator to approve in writing, prior to the marketer's use, all cards and distributed materials used by marketers to offer, sell, market, advertise, or otherwise distribute the discount plan. Also, this bill provides that as part of an examination or investigation, the commissioner may request, and the operator or marketer must provide, copies of materials that are distributed to prospective members. ON APRIL 27, 2021, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1271, AS AMENDED. AMENDMENT #1 retains the present law provision governing authority for a prescription drug discount plan known as "Volunteer Rx" as discussed above in the first paragraph and adds that a prescription drug discount plan issued pursuant to such provision will be subject to regulation by the department and compliance with laws applicable to pharmacy discount cards, including but not limited to, the provisions of this bill as amended. This amendment also reorganizes this bill and the present law provisions governing certificate of registration required by the operator of discount drug plans, information required to be provided to members, cancellation by members, and violations and penalties under the Volunteer RX provisions, as the bill and present law are discussed above. In doing so, this amendment separates the provisions regarding discount plans covering dental services, vision services, and retail purchases of prescription drugs from licensed pharmacies from provisions governing the authority to develop and implement a prescription drug discount plan and regulation and compliance requirements of such plan as discussed above. This amendment deletes the word "medical" from the provision described in (4) of the Bill Summary to clarify that an operator or marketer will be prohibited from paying pharmacies, dentists, or vision care providers fees for healthcare services or collect or accept money from a member to pay a pharmacy, dentist, or vision care provider for healthcare services provided under the "discount plan" (rather than "discount medical plan"), unless the operator or marketer has an active certificate of authority to act as a third-party administrator.