California 2021-2022 Regular Session

California Assembly Bill AB752 Compare Versions

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1-Amended IN Assembly April 15, 2021 Amended IN Assembly March 30, 2021 Amended IN Assembly March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 752Introduced by Assembly Member Nazarian(Coauthors: Assembly Members Bonta and Waldron)(Coauthor: Senator Wiener)February 16, 2021 An act to add Section 1367.207 to the Health and Safety Code, and to add Section 10123.204 to the Insurance Code, relating to health care coverage. LEGISLATIVE COUNSEL'S DIGESTAB 752, as amended, Nazarian. Prescription drug coverage.Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment to apply to any applicable deductible.This bill would require a health care service plan or health insurer, or an entity acting on its behalf, insurer to furnish specified information about a prescription drug upon request by an enrollee or insured, insured or their health care provider, or a third party acting on their behalf. provider. The bill would set forth requirements for the request and response, including that they comply with established industry content and transport standards. require a health care service plan or health insurer to, among other things, respond in real time to a request for the above-described information. The bill would prohibit a health care service plan or health insurer from from, among other things, restricting a health care provider from sharing the information furnished about the prescription drug or penalizing a provider for prescribing a lower cost drug. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1367.207 is added to the Health and Safety Code, to read:1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, enrollee or an enrollees health care provider, a health care service plan shall furnish all of the following information regarding a prescription drug to the enrollee, enrollee or the enrollees health care provider, or the third party acting on behalf of the enrollee: provider:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health care service plan or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health care service plan or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C)Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee. a provider.SEC. 2. Section 10123.204 is added to the Insurance Code, to read:10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, insured or insureds health care provider, a health insurer shall furnish all of the following information regarding a prescription drug to the insured, insured or the insureds health care provider, or the third party acting on behalf of the insured: provider:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health insurer or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health insurer or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C)Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured. a provider.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
1+Amended IN Assembly March 30, 2021 Amended IN Assembly March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 752Introduced by Assembly Member Nazarian(Coauthors: Assembly Members Bonta and Waldron)(Coauthor: Senator Wiener)February 16, 2021 An act to add Section 1367.207 to the Health and Safety Code, and to add Section 10123.204 to the Insurance Code, relating to health care coverage. LEGISLATIVE COUNSEL'S DIGESTAB 752, as amended, Nazarian. Prescription drug coverage.Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment to apply to any applicable deductible.This bill would require a health care service plan or health insurer, or an entity acting on its behalf, to furnish specified information about a prescription drug upon request by an enrollee or insured, their health care provider, or a third party acting on their behalf. The bill would set forth requirements for the request and response, including that they comply with established industry content and transport standards. The bill would prohibit a health care service plan or health insurer from restricting a health care provider from sharing the information furnished about the prescription drug or penalizing a provider for prescribing a lower cost drug. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 1367.207 is added to the Health and Safety Code, to read:1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the enrollee, the enrollees health care provider, or the third party acting on behalf of the enrollee:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health care service plan or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health care service plan or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C) Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee.SEC. 2. Section 10123.204 is added to the Insurance Code, to read:10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the insured, the insureds health care provider, or the third party acting on behalf of the insured:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health insurer or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health insurer or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C) Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
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3- Amended IN Assembly April 15, 2021 Amended IN Assembly March 30, 2021 Amended IN Assembly March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 752Introduced by Assembly Member Nazarian(Coauthors: Assembly Members Bonta and Waldron)(Coauthor: Senator Wiener)February 16, 2021 An act to add Section 1367.207 to the Health and Safety Code, and to add Section 10123.204 to the Insurance Code, relating to health care coverage. LEGISLATIVE COUNSEL'S DIGESTAB 752, as amended, Nazarian. Prescription drug coverage.Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment to apply to any applicable deductible.This bill would require a health care service plan or health insurer, or an entity acting on its behalf, insurer to furnish specified information about a prescription drug upon request by an enrollee or insured, insured or their health care provider, or a third party acting on their behalf. provider. The bill would set forth requirements for the request and response, including that they comply with established industry content and transport standards. require a health care service plan or health insurer to, among other things, respond in real time to a request for the above-described information. The bill would prohibit a health care service plan or health insurer from from, among other things, restricting a health care provider from sharing the information furnished about the prescription drug or penalizing a provider for prescribing a lower cost drug. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
3+ Amended IN Assembly March 30, 2021 Amended IN Assembly March 18, 2021 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 752Introduced by Assembly Member Nazarian(Coauthors: Assembly Members Bonta and Waldron)(Coauthor: Senator Wiener)February 16, 2021 An act to add Section 1367.207 to the Health and Safety Code, and to add Section 10123.204 to the Insurance Code, relating to health care coverage. LEGISLATIVE COUNSEL'S DIGESTAB 752, as amended, Nazarian. Prescription drug coverage.Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment to apply to any applicable deductible.This bill would require a health care service plan or health insurer, or an entity acting on its behalf, to furnish specified information about a prescription drug upon request by an enrollee or insured, their health care provider, or a third party acting on their behalf. The bill would set forth requirements for the request and response, including that they comply with established industry content and transport standards. The bill would prohibit a health care service plan or health insurer from restricting a health care provider from sharing the information furnished about the prescription drug or penalizing a provider for prescribing a lower cost drug. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
44
5- Amended IN Assembly April 15, 2021 Amended IN Assembly March 30, 2021 Amended IN Assembly March 18, 2021
5+ Amended IN Assembly March 30, 2021 Amended IN Assembly March 18, 2021
66
7-Amended IN Assembly April 15, 2021
87 Amended IN Assembly March 30, 2021
98 Amended IN Assembly March 18, 2021
109
1110 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
1211
1312 Assembly Bill
1413
1514 No. 752
1615
1716 Introduced by Assembly Member Nazarian(Coauthors: Assembly Members Bonta and Waldron)(Coauthor: Senator Wiener)February 16, 2021
1817
1918 Introduced by Assembly Member Nazarian(Coauthors: Assembly Members Bonta and Waldron)(Coauthor: Senator Wiener)
2019 February 16, 2021
2120
2221 An act to add Section 1367.207 to the Health and Safety Code, and to add Section 10123.204 to the Insurance Code, relating to health care coverage.
2322
2423 LEGISLATIVE COUNSEL'S DIGEST
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2625 ## LEGISLATIVE COUNSEL'S DIGEST
2726
2827 AB 752, as amended, Nazarian. Prescription drug coverage.
2928
30-Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment to apply to any applicable deductible.This bill would require a health care service plan or health insurer, or an entity acting on its behalf, insurer to furnish specified information about a prescription drug upon request by an enrollee or insured, insured or their health care provider, or a third party acting on their behalf. provider. The bill would set forth requirements for the request and response, including that they comply with established industry content and transport standards. require a health care service plan or health insurer to, among other things, respond in real time to a request for the above-described information. The bill would prohibit a health care service plan or health insurer from from, among other things, restricting a health care provider from sharing the information furnished about the prescription drug or penalizing a provider for prescribing a lower cost drug. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
29+Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment to apply to any applicable deductible.This bill would require a health care service plan or health insurer, or an entity acting on its behalf, to furnish specified information about a prescription drug upon request by an enrollee or insured, their health care provider, or a third party acting on their behalf. The bill would set forth requirements for the request and response, including that they comply with established industry content and transport standards. The bill would prohibit a health care service plan or health insurer from restricting a health care provider from sharing the information furnished about the prescription drug or penalizing a provider for prescribing a lower cost drug. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
3130
3231 Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment to apply to any applicable deductible.
3332
34-This bill would require a health care service plan or health insurer, or an entity acting on its behalf, insurer to furnish specified information about a prescription drug upon request by an enrollee or insured, insured or their health care provider, or a third party acting on their behalf. provider. The bill would set forth requirements for the request and response, including that they comply with established industry content and transport standards. require a health care service plan or health insurer to, among other things, respond in real time to a request for the above-described information. The bill would prohibit a health care service plan or health insurer from from, among other things, restricting a health care provider from sharing the information furnished about the prescription drug or penalizing a provider for prescribing a lower cost drug. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program.
33+This bill would require a health care service plan or health insurer, or an entity acting on its behalf, to furnish specified information about a prescription drug upon request by an enrollee or insured, their health care provider, or a third party acting on their behalf. The bill would set forth requirements for the request and response, including that they comply with established industry content and transport standards. The bill would prohibit a health care service plan or health insurer from restricting a health care provider from sharing the information furnished about the prescription drug or penalizing a provider for prescribing a lower cost drug. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program.
3534
3635 The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
3736
3837 This bill would provide that no reimbursement is required by this act for a specified reason.
3938
4039 ## Digest Key
4140
4241 ## Bill Text
4342
44-The people of the State of California do enact as follows:SECTION 1. Section 1367.207 is added to the Health and Safety Code, to read:1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, enrollee or an enrollees health care provider, a health care service plan shall furnish all of the following information regarding a prescription drug to the enrollee, enrollee or the enrollees health care provider, or the third party acting on behalf of the enrollee: provider:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health care service plan or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health care service plan or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C)Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee. a provider.SEC. 2. Section 10123.204 is added to the Insurance Code, to read:10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, insured or insureds health care provider, a health insurer shall furnish all of the following information regarding a prescription drug to the insured, insured or the insureds health care provider, or the third party acting on behalf of the insured: provider:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health insurer or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health insurer or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C)Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured. a provider.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
43+The people of the State of California do enact as follows:SECTION 1. Section 1367.207 is added to the Health and Safety Code, to read:1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the enrollee, the enrollees health care provider, or the third party acting on behalf of the enrollee:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health care service plan or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health care service plan or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C) Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee.SEC. 2. Section 10123.204 is added to the Insurance Code, to read:10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the insured, the insureds health care provider, or the third party acting on behalf of the insured:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health insurer or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health insurer or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C) Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
4544
4645 The people of the State of California do enact as follows:
4746
4847 ## The people of the State of California do enact as follows:
4948
50-SECTION 1. Section 1367.207 is added to the Health and Safety Code, to read:1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, enrollee or an enrollees health care provider, a health care service plan shall furnish all of the following information regarding a prescription drug to the enrollee, enrollee or the enrollees health care provider, or the third party acting on behalf of the enrollee: provider:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health care service plan or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health care service plan or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C)Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee. a provider.
49+SECTION 1. Section 1367.207 is added to the Health and Safety Code, to read:1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the enrollee, the enrollees health care provider, or the third party acting on behalf of the enrollee:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health care service plan or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health care service plan or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C) Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee.
5150
5251 SECTION 1. Section 1367.207 is added to the Health and Safety Code, to read:
5352
5453 ### SECTION 1.
5554
56-1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, enrollee or an enrollees health care provider, a health care service plan shall furnish all of the following information regarding a prescription drug to the enrollee, enrollee or the enrollees health care provider, or the third party acting on behalf of the enrollee: provider:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health care service plan or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health care service plan or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C)Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee. a provider.
55+1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the enrollee, the enrollees health care provider, or the third party acting on behalf of the enrollee:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health care service plan or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health care service plan or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C) Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee.
5756
58-1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, enrollee or an enrollees health care provider, a health care service plan shall furnish all of the following information regarding a prescription drug to the enrollee, enrollee or the enrollees health care provider, or the third party acting on behalf of the enrollee: provider:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health care service plan or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health care service plan or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C)Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee. a provider.
57+1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the enrollee, the enrollees health care provider, or the third party acting on behalf of the enrollee:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health care service plan or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health care service plan or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C) Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee.
5958
60-1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, enrollee or an enrollees health care provider, a health care service plan shall furnish all of the following information regarding a prescription drug to the enrollee, enrollee or the enrollees health care provider, or the third party acting on behalf of the enrollee: provider:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health care service plan or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health care service plan or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C)Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee. a provider.
59+1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the enrollee, the enrollees health care provider, or the third party acting on behalf of the enrollee:(1) The enrollees eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health care service plan or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health care service plan or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health care service plan or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.(C) Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee.
6160
6261
6362
64-1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, enrollee or an enrollees health care provider, a health care service plan shall furnish all of the following information regarding a prescription drug to the enrollee, enrollee or the enrollees health care provider, or the third party acting on behalf of the enrollee: provider:
63+1367.207. (a) Upon request of an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee, a health care service plan or an entity acting on behalf of a health care service plan, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the enrollee, the enrollees health care provider, or the third party acting on behalf of the enrollee:
6564
6665 (1) The enrollees eligibility for the prescription drug.
6766
6867 (2) A full formulary list of drugs that are covered under the enrollees health care service plan contract.
6968
7069 (3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.
7170
7271 (4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.
7372
74-(b) (1) A health care service plan or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.
73+(b) A health care service plan or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.
7574
7675 (1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:
7776
78-
79-
8077 (A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.
81-
82-
8378
8479 (B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.
8580
81+(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.
8682
87-
88-(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.
89-
90-
91-
92-(3)
93-
94-
95-
96-(2) A health care service plan or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.
83+(3) A health care service plan or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.
9784
9885 (c) (1) A health care service plan or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.
9986
10087 (2) A health care service plan or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health care service plan or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.
10188
10289 (d) A health care service plan or entity acting on its behalf shall not do any of the following:
10390
10491 (1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:
10592
10693 (A) The information provided pursuant to subdivision (a).
10794
10895 (B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollees health care service plan contract.
10996
11097 (C) Additional payment or cost sharing information that may reduce the enrollees out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.
11198
112-
113-
114-(C) Information about the cash price of the drug.
115-
116-(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.
99+(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting enrollee consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).
117100
118101 (3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).
119102
120103 (4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.
121104
122105 (e) A health care service plan or entity acting on its behalf shall treat a third party acting on behalf of an enrollee as an enrollee if the third party has the authority to make health care decisions on behalf of an enrollee.
123106
107+(f) For purposes of this section:
124108
109+(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.
125110
126-(f)
111+(1)
127112
128113
129114
130-(e) For purposes of this section:
131-
132-(1) Cost sharing information means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the enrollees health care service plan contract.
133-
134115 (2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.
135116
136-(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee. a provider.
117+(2)
137118
138-SEC. 2. Section 10123.204 is added to the Insurance Code, to read:10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, insured or insureds health care provider, a health insurer shall furnish all of the following information regarding a prescription drug to the insured, insured or the insureds health care provider, or the third party acting on behalf of the insured: provider:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health insurer or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health insurer or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C)Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured. a provider.
119+
120+
121+(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, an enrollees health care provider, or a third party acting on behalf of an enrollee.
122+
123+SEC. 2. Section 10123.204 is added to the Insurance Code, to read:10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the insured, the insureds health care provider, or the third party acting on behalf of the insured:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health insurer or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health insurer or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C) Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured.
139124
140125 SEC. 2. Section 10123.204 is added to the Insurance Code, to read:
141126
142127 ### SEC. 2.
143128
144-10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, insured or insureds health care provider, a health insurer shall furnish all of the following information regarding a prescription drug to the insured, insured or the insureds health care provider, or the third party acting on behalf of the insured: provider:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health insurer or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health insurer or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C)Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured. a provider.
129+10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the insured, the insureds health care provider, or the third party acting on behalf of the insured:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health insurer or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health insurer or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C) Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured.
145130
146-10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, insured or insureds health care provider, a health insurer shall furnish all of the following information regarding a prescription drug to the insured, insured or the insureds health care provider, or the third party acting on behalf of the insured: provider:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health insurer or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health insurer or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C)Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured. a provider.
131+10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the insured, the insureds health care provider, or the third party acting on behalf of the insured:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health insurer or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health insurer or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C) Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured.
147132
148-10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, insured or insureds health care provider, a health insurer shall furnish all of the following information regarding a prescription drug to the insured, insured or the insureds health care provider, or the third party acting on behalf of the insured: provider:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) (1) A health insurer or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.(1)A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A)A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B)A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.(3)(2) A health insurer or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C)Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(C) Information about the cash price of the drug.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e)A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f)(e) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured. a provider.
133+10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the insured, the insureds health care provider, or the third party acting on behalf of the insured:(1) The insureds eligibility for the prescription drug.(2) A full formulary list of drugs that are covered under the insureds health insurance policy.(3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.(4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.(b) A health insurer or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.(1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:(A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.(B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.(3) A health insurer or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.(c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.(2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.(d) A health insurer or entity acting on its behalf shall not do any of the following:(1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:(A) The information provided pursuant to subdivision (a).(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.(C) Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).(3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).(4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.(e) A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.(f) For purposes of this section:(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.(1)(2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.(2)(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured.
149134
150135
151136
152-10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, insured or insureds health care provider, a health insurer shall furnish all of the following information regarding a prescription drug to the insured, insured or the insureds health care provider, or the third party acting on behalf of the insured: provider:
137+10123.204. (a) Upon request of an insured, an insureds health care provider, or a third party acting on behalf of an insured, a health insurer or an entity acting on behalf of a health insurer, including an affiliate or a pharmacy benefit manager, shall furnish all of the following information regarding a prescription drug to the insured, the insureds health care provider, or the third party acting on behalf of the insured:
153138
154139 (1) The insureds eligibility for the prescription drug.
155140
156141 (2) A full formulary list of drugs that are covered under the insureds health insurance policy.
157142
158143 (3) Cost sharing information for the drug and other formulary alternatives, including a description of any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.
159144
160145 (4) Applicable utilization management requirements for the drug or other formulary alternatives, including prior authorization, step therapy, quantity limits, and site-of-service restrictions.
161146
162-(b) (1) A health insurer or an entity acting on its behalf shall respond shall respond in real time to a request made pursuant to subdivision (a) in the same format in which the request was made.
147+(b) A health insurer or an entity acting on its behalf shall respond to a request made pursuant to subdivision (a) in the same format in which the request was made.
163148
164149 (1) A request and the response to that request shall comply with established industry content and transport standards published by either of the following:
165150
166-
167-
168151 (A) A standards developing organization accredited by the American National Standards Institute, including the National Council for Prescription Drug Programs, Accredited Standards Committee X12, or Health Level Seven International.
169-
170-
171152
172153 (B) A relevant federal or state governing body, including the federal Centers for Medicare and Medicaid Services or the Office of the National Coordinator for Health Information Technology.
173154
155+(2) A facsimile or the use of a proprietary payor payer or patient portal shall not be an acceptable form for a request or the response to that request.
174156
175-
176-(2)A facsimile or the use of a proprietary payer or patient portal shall not be an acceptable form for a request or the response to that request.
177-
178-
179-
180-(3)
181-
182-
183-
184-(2) A health insurer or an entity acting on its behalf may use shall allow the use of an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.
157+(3) A health insurer or an entity acting on its behalf may use an interoperability element to provide the information required pursuant to subdivision (a) in the same format as the request.
185158
186159 (c) (1) A health insurer or an entity acting on its behalf shall ensure that the information provided pursuant to subdivision (a) is current no later than one business day after a change is made and is provided in real time.
187160
188161 (2) A health insurer or entity acting on its behalf shall provide the information pursuant to subdivision (a) if the request is made using the drugs unique billing code or a descriptive term, including the brand name or generic name of the drug. A health insurer or an entity acting on its behalf shall not deny or delay a response to a request for the purpose of blocking the release of information based on how the information was requested.
189162
190163 (d) A health insurer or entity acting on its behalf shall not do any of the following:
191164
192165 (1) Restrict, prohibit, or otherwise hinder a health care provider from communicating or sharing any of the following:
193166
194167 (A) The information provided pursuant to subdivision (a).
195168
196169 (B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the insureds health insurance policy.
197170
198171 (C) Additional payment or cost sharing information that may reduce the insureds out-of-pocket costs, including cash price or patient assistance and support programs sponsored by a drug manufacturer, foundation, or other entity.
199172
200-
201-
202-(C) Information about the cash price of the drug.
203-
204-(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include includes, but is not limited to, charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a). or instituting enrollee consent requirements.
173+(2) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which may include charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, implementing technology in nonstandard ways, or instituting insured consent requirements, processes, policies, procedures, or renewals that are likely to substantially increase the complexity or burden of accessing, exchanging, or using the information provided pursuant to subdivision (a).
205174
206175 (3) Penalize a health care provider for disclosing the information provided pursuant to subdivision (a).
207176
208177 (4) Penalize a health care provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.
209178
210179 (e) A health insurer or entity acting on its behalf shall treat a third party acting on behalf of an insured as an insured if the third party has the authority to make health care decisions on behalf of an insured.
211180
181+(f) For purposes of this section:
212182
183+(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.
213184
214-(f)
185+(1)
215186
216187
217188
218-(e) For purposes of this section:
219-
220-(1) Cost sharing information means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care provider for a prescription drug under the terms of the insureds policy.
221-
222189 (2) Health care provider means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.
223190
224-(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured. a provider.
191+(2)
192+
193+
194+
195+(3) Interoperability element means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an insured, an insureds health care provider, or a third party acting on behalf of an insured.
225196
226197 SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
227198
228199 SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
229200
230201 SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
231202
232203 ### SEC. 3.