*ES0273.2* February 22, 2024 ENGROSSED SENATE BILL No. 273 _____ DIGEST OF SB 273 (Updated February 21, 2024 2:02 pm - DI 140) Citations Affected: IC 12-15; IC 27-8. Synopsis: Biomarker testing coverage. Requires a health plan (which includes a policy of accident and sickness insurance, a health maintenance organization contract, the Medicaid risk based managed care program, and a state employee health plan) to provide coverage for biomarker testing for the purposes of diagnosis, treatment, appropriate management, or ongoing monitoring of an enrollee's disease or (Continued next page) Effective: July 1, 2024. Charbonneau, Becker, Leising, Qaddoura, Bohacek, Bassler, Glick, Ford J.D., Randolph Lonnie M, Yoder (HOUSE SPONSORS — BARRETT, CLERE, PORTER, LEHMAN) January 11, 2024, read first time and referred to Committee on Insurance and Financial Institutions. January 18, 2024, amended, reported favorably — Do Pass; reassigned to Committee on Appropriations. February 1, 2024, amended, reported favorably — Do Pass. February 5, 2024, read second time, ordered engrossed. Engrossed. February 6, 2024, read third time, passed. Yeas 47, nays 1. HOUSE ACTION February 12, 2024, read first time and referred to Committee on Insurance. February 15, 2024, reported — Do Pass. Referred to Committee on Ways and Means pursuant to Rule 127. February 22, 2024, reported — Do Pass. ES 273—LS 6648/DI 55 Digest Continued condition when biomarker testing is supported by medical and scientific evidence. Requires the office of Medicaid policy and planning to provide biomarker testing as a Medicaid program service, and to apply to the United States Department of Health and Human Services for approval of any waiver necessary under the federal Medicaid program for the purpose of providing biomarker testing. Provides that coverage is not required for biomarker testing for screening purposes. Provides that if a prior authorization requirement applies to biomarker testing, the health plan or a third party acting on behalf of the health plan must: (1) approve or deny a request for prior authorization; and (2) notify the covered individual of the approval or denial; in not more than five business days in the case of a nonurgent request or in not more than 48 hours in the case of an urgent request. Requires the office of the secretary of family and social services to report certain information to the budget committee on Medicaid reimbursement rates provided for biomarker testing. ES 273—LS 6648/DI 55ES 273—LS 6648/DI 55 February 22, 2024 Second Regular Session of the 123rd General Assembly (2024) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2023 Regular Session of the General Assembly. ENGROSSED SENATE BILL No. 273 A BILL FOR AN ACT to amend the Indiana Code concerning insurance. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 12-15-5-21.5 IS ADDED TO THE INDIANA 2 CODE AS A NEW SECTION TO READ AS FOLLOWS 3 [EFFECTIVE JULY 1, 2024]: Sec. 21.5. (a) As used in this section, 4 "biomarker" means a characteristic that is objectively measured 5 and evaluated as an indicator of: 6 (1) normal biological processes; 7 (2) pathogenic processes; or 8 (3) pharmacologic responses to a specific therapeutic 9 intervention, including known gene-drug interactions for 10 medications being considered for use or already being 11 administered. 12 The term includes gene mutations, characteristics of genes, and 13 protein expression. 14 (b) As used in this section, "biomarker testing" means the 15 analysis of a patient's tissue, blood, or other biospecimen for the 16 presence of a biomarker. The term includes: 17 (1) single-analyte tests; ES 273—LS 6648/DI 55 2 1 (2) multiplex panel tests; 2 (3) protein expression; and 3 (4) whole exome, whole genome, and whole transcriptome 4 sequencing. 5 (c) As used in this section, "consensus statement" means a 6 statement that is: 7 (1) issued by an independent, multidisciplinary panel of 8 experts that: 9 (A) uses a transparent methodology and reporting 10 structure; and 11 (B) has a conflict of interest policy; 12 (2) aimed at specific clinical circumstances; 13 (3) based on the best available evidence; and 14 (4) developed for the purpose of optimizing the outcomes of 15 clinical care. 16 (d) As used in this section, "nationally recognized clinical 17 practice guidelines" means evidence based clinical practice 18 guidelines that: 19 (1) are developed by an independent organization or medical 20 professional society that: 21 (A) uses a transparent methodology and reporting 22 structure; and 23 (B) has a conflict of interest policy; 24 (2) establish standards of care informed by: 25 (A) a systematic review of evidence; and 26 (B) an assessment of the benefits and risks of alternative 27 care options; and 28 (3) include recommendations intended to optimize patient 29 care. 30 (e) The office shall provide, as a Medicaid program service, 31 biomarker testing for the purposes of diagnosis, treatment, 32 appropriate management, or ongoing monitoring of an enrollee's 33 disease or condition when biomarker testing is supported by 34 medical and scientific evidence, including: 35 (1) labeled indications for a test approved or cleared by the 36 United States Food and Drug Administration; 37 (2) indicated tests for a drug approved by the United States 38 Food and Drug Administration; 39 (3) a warning or precaution on the label of a drug approved 40 by the United States Food and Drug Administration; 41 (4) a national coverage determination of the Centers for 42 Medicare and Medicaid Services (CMS); ES 273—LS 6648/DI 55 3 1 (5) a local coverage determination of a Medicare 2 administrative contractor; or 3 (6) nationally recognized clinical practice guidelines or 4 consensus statements. 5 The service required by this section must be provided in a manner 6 that limits disruptions in care, including the need for multiple 7 biopsies or biospecimen samples. 8 (f) Nothing in this section shall be construed to require coverage 9 of biomarker testing for screening purposes. 10 (g) The office shall apply to the United States Department of 11 Health and Human Services for approval of any waiver necessary 12 under the federal Medicaid program for the purpose of providing 13 biomarker testing. The office may not implement a waiver under 14 this section until the office files an affidavit with the governor 15 attesting that the federal waiver applied for under this section is in 16 effect. The office shall file the affidavit under this subsection not 17 later than five (5) days after the office is notified that the waiver is 18 approved. 19 (h) If the office receives a waiver under this section from the 20 United States Department of Health and Human Services and the 21 governor receives the affidavit filed under subsection (g), the office 22 shall implement the waiver not more than sixty (60) days after the 23 governor receives the affidavit. 24 (i) Before November 1, 2025, and before November 1 of each 25 year thereafter, the office of the secretary shall report to the 26 budget committee on the Medicaid reimbursement rates provided 27 for biomarker testing. The report shall include the following 28 statewide aggregate information for the state fiscal year 2023 and 29 the state fiscal year most recently ended: 30 (1) The total number of patients who received biomarker 31 testing. 32 (2) The total number of patients who received biomarker 33 testing for each biomarker test type. 34 (3) The total amount of state funding expended for biomarker 35 testing. 36 (4) The ten (10) most common conditions or treatments for 37 which biomarker testing was ordered. 38 (5) As a result of the biomarker testing, how many patients: 39 (A) were placed on particular therapies; 40 (B) avoided certain treatments; and 41 (C) were subject to any other treatment impacts. 42 (6) Any other information requested by the budget committee. ES 273—LS 6648/DI 55 4 1 Each provider that receives state Medicaid funding under this 2 section shall provide the information described in subdivisions (1) 3 through (6) to the office of the secretary not later than August 1 of 4 each year. 5 SECTION 2. IC 27-8-14.3 IS ADDED TO THE INDIANA CODE 6 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE 7 JULY 1, 2024]: 8 Chapter 14.3. Coverage for Biomarker Testing 9 Sec. 1. This chapter applies to: 10 (1) a policy of accident and sickness insurance or a health 11 maintenance organization contract that is issued, renewed, or 12 entered into after June 30, 2024; 13 (2) Medicaid managed care provided by a managed care 14 organization under a contract with the office of Medicaid 15 policy and planning that is entered into or renewed after June 16 30, 2024; and 17 (3) coverage provided by a state employee health plan after 18 June 30, 2024. 19 Sec. 2. (a) As used in this chapter, "accident and sickness 20 policy" means an insurance policy that provides at least one (1) of 21 the types of insurance described in IC 27-1-5-1, Classes 1(b) and 22 2(a). 23 (b) The term "accident and sickness policy" does not include the 24 following: 25 (1) Accident only, credit, dental, vision, Medicare supplement, 26 long term care, or disability income insurance. 27 (2) Coverage issued as a supplement to liability insurance. 28 (3) Worker's compensation or similar insurance. 29 (4) Automobile medical payment insurance. 30 (5) A specified disease policy. 31 (6) A short term insurance plan that: 32 (A) may be renewed for the greater of: 33 (i) thirty-six (36) months; or 34 (ii) the maximum period permitted under federal law; 35 (B) has a term of not more than three hundred sixty-four 36 (364) days; and 37 (C) has an annual limit of at least two million dollars 38 ($2,000,000). 39 (7) A policy that provides indemnity benefits not based on any 40 expense incurred requirement, including a plan that provides 41 coverage for: 42 (A) hospital confinement, critical illness, or intensive care; ES 273—LS 6648/DI 55 5 1 or 2 (B) gaps for deductibles or copayments. 3 (8) A supplemental plan that always pays in addition to other 4 coverage. 5 (9) A student health plan. 6 (10) An employer sponsored health benefit plan that is: 7 (A) provided to individuals who are eligible for Medicare; 8 and 9 (B) not marketed as, or held out to be, a Medicare 10 supplement policy. 11 Sec. 3. (a) As used in this chapter, "biomarker" means a 12 characteristic that is objectively measured and evaluated as an 13 indicator of: 14 (1) normal biological processes; 15 (2) pathogenic processes; or 16 (3) pharmacologic responses to a specific therapeutic 17 intervention, including known gene-drug interactions for 18 medications being considered for use or already being 19 administered. 20 (b) The term includes gene mutations, characteristics of genes, 21 and protein expression. 22 Sec. 4. (a) As used in this chapter, "biomarker testing" means 23 the analysis of a patient's tissue, blood, or other biospecimen for 24 the presence of a biomarker. 25 (b) The term includes: 26 (1) single-analyte tests; 27 (2) multiplex panel tests; 28 (3) protein expression; and 29 (4) whole exome, whole genome, and whole transcriptome 30 sequencing. 31 Sec. 5. As used in this chapter, "consensus statement" means a 32 statement that is: 33 (1) issued by an independent, multidisciplinary panel of 34 experts that: 35 (A) uses a transparent methodology and reporting 36 structure; and 37 (B) has a conflict of interest policy; 38 (2) aimed at specific clinical circumstances; 39 (3) based on the best available evidence; and 40 (4) developed for the purpose of optimizing the outcomes of 41 clinical care. 42 Sec. 6. As used in this chapter, "covered individual" means an ES 273—LS 6648/DI 55 6 1 individual who is entitled to coverage under a health plan. 2 Sec. 7. (a) As used in this chapter, "health plan" means any of 3 the following: 4 (1) A policy of accident and sickness insurance. 5 (2) A contract with a health maintenance organization (as 6 defined in IC 27-13-1-19) that provides coverage for basic 7 health care services (as defined in IC 27-13-1-4). 8 (3) The Medicaid risk based managed care program operated 9 under IC 12-15. 10 (4) A state employee health plan. 11 (b) The term includes a person that administers a health plan. 12 Sec. 8. As used in this chapter, "nationally recognized clinical 13 practice guidelines" means evidence based clinical practice 14 guidelines that: 15 (1) are developed by an independent organization or medical 16 professional society that: 17 (A) uses a transparent methodology and reporting 18 structure; and 19 (B) has a conflict of interest policy; 20 (2) establish standards of care informed by: 21 (A) a systematic review of evidence; and 22 (B) an assessment of the benefits and risks of alternative 23 care options; and 24 (3) include recommendations intended to optimize patient 25 care. 26 Sec. 9. (a) As used in this chapter, "state employee health plan" 27 refers to either of the following: 28 (1) A self-insurance program established under 29 IC 5-10-8-7(b). 30 (2) A contract with a prepaid health care delivery plan that is 31 entered into or renewed under IC 5-10-8-7(c). 32 (b) The term includes a person that administers prescription 33 drug benefits on behalf of a state employee health plan. 34 Sec. 10. (a) A health plan shall provide coverage for biomarker 35 testing for the purposes of diagnosis, treatment, appropriate 36 management, or ongoing monitoring of an enrollee's disease or 37 condition when biomarker testing is supported by medical and 38 scientific evidence, including: 39 (1) labeled indications for a test approved or cleared by the 40 United States Food and Drug Administration; 41 (2) indicated tests for a drug approved by the United States 42 Food and Drug Administration; ES 273—LS 6648/DI 55 7 1 (3) a warning or precaution on the label of a drug approved 2 by the United States Food and Drug Administration; 3 (4) a national coverage determination of the Centers for 4 Medicare and Medicaid Services (CMS); 5 (5) a local coverage determination of a Medicare 6 administrative contractor; or 7 (6) nationally recognized clinical practice guidelines or 8 consensus statements. 9 (b) The coverage required by this section must be provided in a 10 manner that limits disruptions in care, including the need for 11 multiple biopsies or biospecimen samples. 12 (c) Nothing in this section shall be construed to require coverage 13 of biomarker testing for screening purposes. 14 (d) If a prior authorization requirement applies to biomarker 15 testing under a health plan, the health plan or a third party acting 16 on behalf of the health plan must: 17 (1) approve or deny a request for prior authorization for 18 biomarker testing; and 19 (2) notify the covered individual and any person requesting 20 prior authorization of the biomarker testing on behalf of the 21 covered individual; 22 in not more than five (5) business days after the request in the case 23 of a nonurgent request or in not more than forty-eight (48) hours 24 after the request in the case of an urgent request. 25 (e) A health plan shall ensure that a covered individual and the 26 practitioner who prescribes biomarker testing for the covered 27 individual have access to a clear, readily accessible, and convenient 28 process for requesting an exception to: 29 (1) a coverage policy; or 30 (2) a prior authorization determination; 31 of the health plan that is adverse to the coverage of biomarker 32 testing for the covered individual. The process required by this 33 subsection shall be made readily accessible on the health plan's 34 website. ES 273—LS 6648/DI 55 8 COMMITTEE REPORT Madam President: The Senate Committee on Insurance and Financial Institutions, to which was referred Senate Bill No. 273, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows: Page 3, between lines 7 and 8, begin a new paragraph and insert: "(f) Nothing in this section shall be construed to require coverage of biomarker testing for screening purposes.". Page 3, line 8, delete "(f)" and insert "(g)". Page 3, line 17, delete "(g)" and insert "(h)". Page 3, line 19, delete "(f)," and insert "(g),". Page 6, between lines 28 and 29, begin a new paragraph and insert: "(c) Nothing in this section shall be construed to require coverage of biomarker testing for screening purposes.". Page 6, line 29, delete "(c)" and insert "(d)". Page 6, line 37, delete "seventy-two (72) hours" and insert "five (5) business days". Page 6, line 38, delete "twenty-four (24)" and insert "forty-eight (48)". Page 6, line 40, delete "(d)" and insert "(e)". and when so amended that said bill do pass and be reassigned to the Senate Committee on Appropriations. (Reference is to SB 273 as introduced.) BALDWIN, Chairperson Committee Vote: Yeas 8, Nays 1. _____ COMMITTEE REPORT Madam President: The Senate Committee on Appropriations, to which was referred Senate Bill No. 273, has had the same under consideration and begs leave to report the same back to the Senate with the recommendation that said bill be AMENDED as follows: Page 3, between lines 23 and 24, begin a new paragraph and insert: "(i) Before November 1, 2025, and before November 1 of each year thereafter, the office of the secretary shall report to the budget committee on the Medicaid reimbursement rates provided ES 273—LS 6648/DI 55 9 for biomarker testing. The report shall include the following statewide aggregate information for the state fiscal year 2023 and the state fiscal year most recently ended: (1) The total number of patients who received biomarker testing. (2) The total number of patients who received biomarker testing for each biomarker test type. (3) The total amount of state funding expended for biomarker testing. (4) The ten (10) most common conditions or treatments for which biomarker testing was ordered. (5) As a result of the biomarker testing, how many patients: (A) were placed on particular therapies; (B) avoided certain treatments; and (C) were subject to any other treatment impacts. (6) Any other information requested by the budget committee. Each provider that receives state Medicaid funding under this section shall provide the information described in subdivisions (1) through (6) to the office of the secretary not later than August 1 of each year.". and when so amended that said bill do pass. (Reference is to SB 273 as printed January 19, 2024.) MISHLER, Chairperson Committee Vote: Yeas 13, Nays 0. _____ COMMITTEE REPORT Mr. Speaker: Your Committee on Insurance, to which was referred Senate Bill 273, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill do pass. (Reference is to SB 273 as printed February 2, 2024.) CARBAUGH Committee Vote: Yeas 11, Nays 0 ES 273—LS 6648/DI 55 10 COMMITTEE REPORT Mr. Speaker: Your Committee on Ways and Means, to which was referred Engrossed Senate Bill 273, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill do pass. (Reference is to ESB 273 as printed February 15, 2024.) THOMPSON Committee Vote: Yeas 19, Nays 0 ES 273—LS 6648/DI 55