Florida 2024 Regular Session

Florida House Bill H0363 Compare Versions

Only one version of the bill is available at this time.
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1010 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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1414 A bill to be entitled 1
1515 An act relating to health insurance cost sharing; 2
1616 creating s. 627.6383, F.S.; defining the term "cost -3
1717 sharing requirement"; requiring specified individual 4
1818 health insurers and their pharmacy benefit managers to 5
1919 apply payments for prescription drugs by or on behalf 6
2020 of insureds toward the total contributions of the 7
2121 insureds' cost-sharing requirements under certain 8
2222 circumstances; providing construction; providin g 9
2323 applicability; amending s. 627.6385, F.S.; providing 10
2424 disclosure requirements; providing applicability; 11
2525 amending s. 627.64741, F.S.; requiring specified 12
2626 contracts to require pharmacy benefit managers to 13
2727 apply payments by or on behalf of insureds toward th e 14
2828 insureds' total contributions to cost -sharing 15
2929 requirements; providing applicability; providing 16
3030 disclosure requirements; creating s. 627.65715, F.S.; 17
3131 defining the term "cost -sharing requirement"; 18
3232 requiring specified group health insurers and their 19
3333 pharmacy benefit managers to apply payments for 20
3434 prescription drugs by or on behalf of insureds toward 21
3535 the total contributions of the insureds' cost -sharing 22
3636 requirements under certain circumstances; providing 23
3737 construction; providing disclosure requirements; 24
3838 providing applicability; amending s. 627.6572, F.S.; 25
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4747 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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5151 requiring specified contracts to require pharmacy 26
5252 benefit managers to apply payments by or on behalf of 27
5353 insureds toward the insureds' total contributions to 28
5454 cost-sharing requirements; providing applicability; 29
5555 providing disclosure requirements; amending s. 30
5656 627.6699, F.S.; making technical changes; requiring 31
5757 small employer carriers to comply with certain cost -32
5858 sharing requirements; amending s. 641.31, F.S.; 33
5959 defining the term "cost -sharing requirement"; 34
6060 requiring specified health maintenance organizations 35
6161 and their pharmacy benefit managers to apply payments 36
6262 for prescription drugs by or on behalf of subscribers 37
6363 toward the total contributions of the subscribers' 38
6464 cost-sharing requirements under certain circumstances; 39
6565 providing construction; providing disclosure 40
6666 requirements; providing applicability; amending s. 41
6767 641.314, F.S.; requiring specified contracts to 42
6868 require pharmacy benefit managers to apply payments by 43
6969 or on behalf of subscribers toward the subscribers' 44
7070 total contributions to cost -sharing requirements; 45
7171 providing applicability; providing disclosure 46
7272 requirements; amending s. 409.967, F.S.; conforming a 47
7373 cross-reference; amending s. 641.185, F.S.; conforming 48
7474 a provision to changes made by the act; providing a 49
7575 declaration of important state interest; providing an 50
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8484 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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8888 effective date. 51
8989 52
9090 Be It Enacted by the Legislature of the State of Florida: 53
9191 54
9292 Section 1. Section 627.6383, Florida Statutes, is created 55
9393 to read: 56
9494 627.6383 Cost-sharing requirements. — 57
9595 (1) As used in this section, the term "cost -sharing 58
9696 requirement" means a dollar limit, a deductible, a copayment, 59
9797 coinsurance, or any other out -of-pocket expense imposed on an 60
9898 insured, including, but not limited to, the annual limitation on 61
9999 cost sharing subject to 42 U. S.C. s. 18022. 62
100100 (2)(a) Each health insurer issuing, delivering, or 63
101101 renewing a policy in this state which provides prescription drug 64
102102 coverage, or each pharmacy benefit manager on behalf of such 65
103103 health insurer, shall apply any amount paid for a prescription 66
104104 drug by an insured or by another person on behalf of the insured 67
105105 toward the insured's total contribution to any cost -sharing 68
106106 requirement, if the prescription drug: 69
107107 1. Does not have a generic equivalent; or 70
108108 2. Has a generic equivalent and the insured h as obtained 71
109109 authorization for the prescription drug through any of the 72
110110 following: 73
111111 a. Prior authorization from the health insurer or pharmacy 74
112112 benefit manager. 75
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121121 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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125125 b. A step-therapy protocol. 76
126126 c. The exception or appeal process of the health insurer 77
127127 or pharmacy benefit manager. 78
128128 (b) The amount paid by or on behalf of the insured which 79
129129 is applied toward the insured's total contribution to any cost -80
130130 sharing requirement under paragraph (a) includes, but is not 81
131131 limited to, any payment with or any discount throug h financial 82
132132 assistance, a manufacturer copay card, a product voucher, or any 83
133133 other reduction in out -of-pocket expenses made by or on behalf 84
134134 of the insured for a prescription drug. 85
135135 (3) This section applies to any health insurance policy 86
136136 issued, delivered, or renewed in this state on or after January 87
137137 1, 2025. 88
138138 Section 2. Subsections (2) and (3) of section 627.6385, 89
139139 Florida Statutes, are renumbered as subsections (3) and (4), 90
140140 respectively, present subsection (2) of that section is amended, 91
141141 and a new subsection (2) is added to that section, to read: 92
142142 627.6385 Disclosures to policyholders; calculations of 93
143143 cost sharing.— 94
144144 (2) Each health insurer issuing, delivering, or renewing a 95
145145 policy in this state which provides prescription drug coverage, 96
146146 regardless of whether the prescription drug benefits are 97
147147 administered or managed by the health insurer or by a pharmacy 98
148148 benefit manager on behalf of the health insurer, shall disclose 99
149149 on its website that any amount paid by a policyholder or by 100
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158158 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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162162 another person on behalf of the policyholder must be applied 101
163163 toward the policyholder's total contribution to any cost -sharing 102
164164 requirement pursuant to s. 627.6383. This subsection applies to 103
165165 any policy issued, delivered, or renewed in this state on or 104
166166 after January 1, 2025. 105
167167 (3)(2) Each health insurer shall include in every policy 106
168168 delivered or issued for delivery to any person in this the state 107
169169 or in materials provided as required by s. 627.64725 a notice 108
170170 that the information required by this section is available 109
171171 electronically and the website address of the website where the 110
172172 information can be accessed. In addition, each health insurer 111
173173 issuing, delivering, or renewing a policy in this state which 112
174174 provides prescription drug coverage, regardless of whether the 113
175175 prescription drug benefits are administered or managed by the 114
176176 health insurer or by a pharmacy benefit manager on behalf of the 115
177177 health insurer, shall disclose in every policy that is issued, 116
178178 delivered, or renewed to any person in this state on or after 117
179179 January 1, 2025, that any amount paid by a policyholder or by 118
180180 another person on behalf of the policyholder must be applied 119
181181 toward the policyholder's total contribution to any cost -sharing 120
182182 requirement pursuant to s. 627.6383. 121
183183 Section 3. Paragraph (c) is added to subsec tion (2) of 122
184184 section 627.64741, Florida Statutes, to read: 123
185185 627.64741 Pharmacy benefit manager contracts. — 124
186186 (2) In addition to the requirements of part VII of chapter 125
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195195 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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199199 626, a contract between a health insurer and a pharmacy benefit 126
200200 manager must require tha t the pharmacy benefit manager: 127
201201 (c)1. Apply any amount paid by an insured or by another 128
202202 person on behalf of the insured toward the insured's total 129
203203 contribution to any cost -sharing requirement pursuant to s. 130
204204 627.6383. This subparagraph applies to any insu red whose 131
205205 insurance policy is issued, delivered, or renewed in this state 132
206206 on or after January 1, 2025. 133
207207 2. Disclose to every insured whose insurance policy is 134
208208 issued, delivered, or renewed in this state on or after January 135
209209 1, 2025, that the pharmacy benef it manager shall apply any 136
210210 amount paid by the insured or by another person on behalf of the 137
211211 insured toward the insured's total contribution to any cost -138
212212 sharing requirement pursuant to s. 627.6383. 139
213213 Section 4. Section 627.65715, Florida Statutes, is create d 140
214214 to read: 141
215215 627.65715 Cost-sharing requirements. — 142
216216 (1) As used in this section, the term "cost -sharing 143
217217 requirement" means a dollar limit, a deductible, a copayment, 144
218218 coinsurance, or any other out -of-pocket expense imposed on an 145
219219 insured, including, but not limited to, the annual limitation on 146
220220 cost sharing subject to 42 U.S.C. s. 18022. 147
221221 (2)(a) Each insurer issuing, delivering, or renewing a 148
222222 policy in this state which provides prescription drug coverage, 149
223223 or each pharmacy benefit manager on behalf of such in surer, 150
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232232 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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236236 shall apply any amount paid for a prescription drug by an 151
237237 insured or by another person on behalf of the insured toward the 152
238238 insured's total contribution to any cost -sharing requirement, if 153
239239 the prescription drug: 154
240240 1. Does not have a generic equivalen t; or 155
241241 2. Has a generic equivalent and the insured has obtained 156
242242 authorization for the prescription drug through any of the 157
243243 following: 158
244244 a. Prior authorization from the health insurer or pharmacy 159
245245 benefit manager. 160
246246 b. A step-therapy protocol. 161
247247 c. The exception or appeal process of the health insurer 162
248248 or pharmacy benefit manager. 163
249249 (b) The amount paid by or on behalf of the insured which 164
250250 is applied toward the insured's total contribution to any cost -165
251251 sharing requirement under paragraph (a) includes, but is no t 166
252252 limited to, any payment with or any discount through financial 167
253253 assistance, a manufacturer copay card, a product voucher, or any 168
254254 other reduction in out -of-pocket expenses made by or on behalf 169
255255 of the insured for a prescription drug. 170
256256 (3) Each insurer issu ing, delivering, or renewing a policy 171
257257 in this state which provides prescription drug coverage, 172
258258 regardless of whether the prescription drug benefits are 173
259259 administered or managed by the insurer or by a pharmacy benefit 174
260260 manager on behalf of the insurer, shall disclose on its website 175
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269269 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273273 and in every policy issued, delivered, or renewed in this state 176
274274 on or after January 1, 2025, that any amount paid by an insured 177
275275 or by another person on behalf of the insured must be applied 178
276276 toward the insured's total contribution to any cost-sharing 179
277277 requirement. 180
278278 (4) This section applies to any group health insurance 181
279279 policy issued, delivered, or renewed in this state on or after 182
280280 January 1, 2025. 183
281281 Section 5. Paragraph (c) is added to subsection (2) of 184
282282 section 627.6572, Florida Statu tes, to read: 185
283283 627.6572 Pharmacy benefit manager contracts. — 186
284284 (2) In addition to the requirements of part VII of chapter 187
285285 626, a contract between a health insurer and a pharmacy benefit 188
286286 manager must require that the pharmacy benefit manager: 189
287287 (c)1. Apply any amount paid by an insured or by another 190
288288 person on behalf of the insured toward the insured's total 191
289289 contribution to any cost -sharing requirement pursuant to s. 192
290290 627.65715. This subparagraph applies to any insured whose 193
291291 insurance policy is issued, delive red, or renewed in this state 194
292292 on or after January 1, 2025. 195
293293 2. Disclose to every insured whose insurance policy is 196
294294 issued, delivered, or renewed in this state on or after January 197
295295 1, 2025, that the pharmacy benefit manager shall apply any 198
296296 amount paid by the insured or by another person on behalf of the 199
297297 insured toward the insured's total contribution to any cost -200
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306306 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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310310 sharing requirement pursuant to s. 627.65715. 201
311311 Section 6. Paragraph (e) of subsection (5) of section 202
312312 627.6699, Florida Statutes, is amended to read : 203
313313 627.6699 Employee Health Care Access Act. — 204
314314 (5) AVAILABILITY OF COVERAGE. — 205
315315 (e) All health benefit plans issued under this section 206
316316 must comply with the following conditions: 207
317317 1. For employers who have fewer than two employees, a late 208
318318 enrollee may be excluded from coverage for no longer than 24 209
319319 months if he or she was not covered by creditable coverage 210
320320 continually to a date not more than 63 days before the effective 211
321321 date of his or her new coverage. 212
322322 2. Any requirement used by a small employer carrier in 213
323323 determining whether to provide coverage to a small employer 214
324324 group, including requirements for minimum participation of 215
325325 eligible employees and minimum employer contributions, must be 216
326326 applied uniformly among all small employer groups having the 217
327327 same number of eligible employees applying for coverage or 218
328328 receiving coverage from the small employer carrier, except that 219
329329 a small employer carrier that participates in, administers, or 220
330330 issues health benefits purs uant to s. 381.0406 which do not 221
331331 include a preexisting condition exclusion may require as a 222
332332 condition of offering such benefits that the employer has had no 223
333333 health insurance coverage for its employees for a period of at 224
334334 least 6 months. A small employer car rier may vary application of 225
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343343 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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347347 minimum participation requirements and minimum employer 226
348348 contribution requirements only by the size of the small employer 227
349349 group. 228
350350 3. In applying minimum participation requirements with 229
351351 respect to a small employer, a small emplo yer carrier may shall 230
352352 not consider as an eligible employee employees or dependents who 231
353353 have qualifying existing coverage in an employer -based group 232
354354 insurance plan or an ERISA qualified self -insurance plan in 233
355355 determining whether the applicable percentage of participation 234
356356 is met. However, a small employer carrier may count eligible 235
357357 employees and dependents who have coverage under another health 236
358358 plan that is sponsored by that employer. 237
359359 4. A small employer carrier may shall not increase any 238
360360 requirement for minimum employee participation or any 239
361361 requirement for minimum employer contribution applicable to a 240
362362 small employer at any time after the small employer has been 241
363363 accepted for coverage, unless the employer size has changed, in 242
364364 which case the small employer car rier may apply the requirements 243
365365 that are applicable to the new group size. 244
366366 5. If a small employer carrier offers coverage to a small 245
367367 employer, it must offer coverage to all the small employer's 246
368368 eligible employees and their dependents. A small employer 247
369369 carrier may not offer coverage limited to certain persons in a 248
370370 group or to part of a group, except with respect to late 249
371371 enrollees. 250
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380380 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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384384 6. A small employer carrier may not modify any health 251
385385 benefit plan issued to a small employer with respect to a small 252
386386 employer or any eligible employee or dependent through riders, 253
387387 endorsements, or otherwise to restrict or exclude coverage for 254
388388 certain diseases or medical conditions otherwise covered by the 255
389389 health benefit plan. 256
390390 7. An initial enrollment period of at least 30 day s must 257
391391 be provided. An annual 30 -day open enrollment period must be 258
392392 offered to each small employer's eligible employees and their 259
393393 dependents. A small employer carrier must provide special 260
394394 enrollment periods as required by s. 627.65615. 261
395395 8. A small employer carrier shall comply with s. 627.65715 262
396396 with respect to contribution to cost -sharing requirements, as 263
397397 defined in that section. 264
398398 Section 7. Subsection (48) is added to section 641.31, 265
399399 Florida Statutes, to read: 266
400400 641.31 Health maintenance contracts. — 267
401401 (48)(a) As used in this subsection, the term "cost -sharing 268
402402 requirement" means a dollar limit, a deductible, a copayment, 269
403403 coinsurance, or any other out -of-pocket expense imposed on a 270
404404 subscriber, including, but not limited to, the annual limitation 271
405405 on cost sharing subject to 42 U.S.C. s. 18022. 272
406406 (b)1. Each health maintenance organization issuing, 273
407407 delivering, or renewing a health maintenance contract or 274
408408 certificate in this state which provides prescription drug 275
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417417 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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421421 coverage, or each pharmacy benefit manager on behalf of such 276
422422 health maintenance organization, shall apply any amount paid for 277
423423 a prescription drug by a subscriber or by another person on 278
424424 behalf of the subscriber toward the subscriber's total 279
425425 contribution to any cost-sharing requirement if the prescription 280
426426 drug: 281
427427 a. Does not have a generic equivalent; or 282
428428 b. Has a generic equivalent and the subscriber has 283
429429 obtained authorization for the prescription drug through any of 284
430430 the following: 285
431431 (I) Prior authorizatio n from the health maintenance 286
432432 organization or pharmacy benefit manager. 287
433433 (II) A step-therapy protocol. 288
434434 (III) The exception or appeal process of the health 289
435435 maintenance organization or pharmacy benefit manager. 290
436436 2. The amount paid by or on behalf of the subscriber which 291
437437 is applied toward the subscriber's total contribution to any 292
438438 cost-sharing requirement under subparagraph 1. includes, but is 293
439439 not limited to, any payment with or any discount through 294
440440 financial assistance, a manufacturer copay card, a produc t 295
441441 voucher, or any other reduction in out -of-pocket expenses made 296
442442 by or on behalf of the subscriber for a prescription drug. 297
443443 (c) Each health maintenance organization issuing, 298
444444 delivering, or renewing a health maintenance contract or 299
445445 certificate in this sta te which provides prescription drug 300
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454454 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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458458 coverage, regardless of whether the prescription drug benefits 301
459459 are administered or managed by the health maintenance 302
460460 organization or by a pharmacy benefit manager on behalf of the 303
461461 health maintenance organization, shall d isclose on its website 304
462462 and in every subscriber's health maintenance contract, 305
463463 certificate, or member handbook issued, delivered, or renewed in 306
464464 this state on or after January 1, 2025, that any amount paid by 307
465465 a subscriber or by another person on behalf of th e subscriber 308
466466 must be applied toward the subscriber's total contribution to 309
467467 any cost-sharing requirement. 310
468468 (d) This subsection applies to any health maintenance 311
469469 contract or certificate issued, delivered, or renewed in this 312
470470 state on or after January 1, 2025 . 313
471471 Section 8. Paragraph (c) is added to subsection (2) of 314
472472 section 641.314, Florida Statutes, to read: 315
473473 641.314 Pharmacy benefit manager contracts. — 316
474474 (2) In addition to the requirements of part VII of chapter 317
475475 626, a contract between a health maintenance organization and a 318
476476 pharmacy benefit manager must require that the pharmacy benefit 319
477477 manager: 320
478478 (c)1. Apply any amount paid by a subscriber or by another 321
479479 person on behalf of the subscriber toward the subscriber's total 322
480480 contribution to any cost -sharing requirement pursuant to s. 323
481481 641.31(48). This subparagraph applies to any subscriber whose 324
482482 health maintenance contract or certificate is issued, delivered, 325
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491491 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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495495 or renewed in this state on or after January 1, 2025. 326
496496 2. Disclose to every subscriber whose health mainten ance 327
497497 contract or certificate is issued, delivered, or renewed in this 328
498498 state on or after January 1, 2025, that the pharmacy benefit 329
499499 manager shall apply any amount paid by the subscriber or by 330
500500 another person on behalf of the subscriber toward the 331
501501 subscriber's total contribution to any cost -sharing requirement 332
502502 pursuant to s. 641.31(48). 333
503503 Section 9. Paragraph (o) of subsection (2) of section 334
504504 409.967, Florida Statutes, is amended to read: 335
505505 409.967 Managed care plan accountability. — 336
506506 (2) The agency shall estab lish such contract requirements 337
507507 as are necessary for the operation of the statewide managed care 338
508508 program. In addition to any other provisions the agency may deem 339
509509 necessary, the contract must require: 340
510510 (o) Transparency.—Managed care plans shall comply with ss. 341
511511 627.6385(4) and 641.54(7) ss. 627.6385(3) and 641.54(7) . 342
512512 Section 10. Paragraph (k) of subsection (1) of section 343
513513 641.185, Florida Statutes, is amended to read: 344
514514 641.185 Health maintenance organization subscriber 345
515515 protections.— 346
516516 (1) With respect to the provisions of this part and part 347
517517 III, the principles expressed in the following statements serve 348
518518 as standards to be followed by the commission, the office, the 349
519519 department, and the Agency for Health Care Administration in 350
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528528 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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532532 exercising their powers and duties, in exercising administrative 351
533533 discretion, in administrative interpretations of the law, in 352
534534 enforcing its provisions, and in adopting rules: 353
535535 (k) A health maintenance organization subscriber shall be 354
536536 given a copy of the applicable health maintenance contract, 355
537537 certificate, or member handbook specifying: all the provisions, 356
538538 disclosure, and limitations required pursuant to s. 641.31(1) , 357
539539 and (4), and (48); the covered services, including those 358
540540 services, medical conditions, and provider types specified in 359
541541 ss. 641.31, 641.31094, 641.31095, 641.31096, 641.51(11), and 360
542542 641.513; and where and in what manner services may be obtained 361
543543 pursuant to s. 641.31(4). 362
544544 Section 11. The Legislature finds that this act fulfills 363
545545 an important state interest. 364
546546 Section 12. This act shall take effect July 1, 2024. 365