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Terms Used In Texas Government Code 540.0205

  • Contract: A legal written agreement that becomes binding when signed.
  • Fraud: Intentional deception resulting in injury to another.

In considering approval of a subcontract between a managed care organization and a pharmacy benefit manager to provide Medicaid prescription drug benefits, the commission shall review and consider whether in the preceding three years the pharmacy benefit manager has been:
(1) convicted of:
(A) an offense involving a material misrepresentation or an act of fraud; or
(B) another violation of state or federal criminal law;
(2) adjudicated to have committed a breach of contract; or
(3) assessed a penalty or fine of $500,000 or more in a state or federal administrative proceeding.


Text of section effective on April 01, 2025