14 | | - | SECTION 1. IC 27-1-24.5-0.8 IS ADDED TO THE INDIANA |
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| 67 | + | 1 SECTION 1. IC 27-1-24.5-0.8 IS ADDED TO THE INDIANA |
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| 68 | + | 2 CODE AS A NEW SECTION TO READ AS FOLLOWS |
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| 69 | + | 3 [EFFECTIVE JANUARY 1, 2026]: Sec. 0.8. As used in this chapter, |
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| 70 | + | 4 "cost sharing" means any copayment, coinsurance, deductible, or |
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| 71 | + | 5 other similar charge that is: |
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| 72 | + | 6 (1) required of a covered individual for a health care service |
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| 73 | + | 7 covered by a health plan, including a prescription drug; and |
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| 74 | + | 8 (2) paid: |
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| 75 | + | 9 (A) by; or |
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| 76 | + | 10 (B) on behalf of; |
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| 77 | + | 11 the covered individual. |
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| 78 | + | 12 SECTION 2. IC 27-1-24.5-4.5 IS ADDED TO THE INDIANA |
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| 79 | + | 13 CODE AS A NEW SECTION TO READ AS FOLLOWS |
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| 80 | + | 14 [EFFECTIVE JANUARY 1, 2026]: Sec. 4.5. As used in this chapter, |
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| 81 | + | 15 "health care service" means a service or good furnished for the |
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| 82 | + | 16 purpose of preventing, alleviating, curing, or healing: |
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| 83 | + | 17 (1) human illness; |
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| 84 | + | EH 1604—LS 7577/DI 154 2 |
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| 85 | + | 1 (2) physical disability; or |
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| 86 | + | 2 (3) injury. |
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| 87 | + | 3 SECTION 3. IC 27-1-24.5-5, AS AMENDED BY P.L.207-2021, |
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| 88 | + | 4 SECTION 52, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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| 89 | + | 5 JANUARY 1, 2026]: Sec. 5. As used in this chapter, "health plan" |
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| 90 | + | 6 means a plan through which coverage is provided for health care |
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| 91 | + | 7 services through insurance, prepayment, reimbursement, or |
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| 92 | + | 8 otherwise. The term includes the following: |
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| 93 | + | 9 (1) A state employee health plan (as defined in IC 5-10-8-6.7). |
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| 94 | + | 10 (2) A policy of accident and sickness insurance (as defined in |
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| 95 | + | 11 IC 27-8-5-1). However, the term does not include the coverages |
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| 96 | + | 12 described in IC 27-8-5-2.5(a). |
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| 97 | + | 13 (3) An individual contract (as defined in IC 27-13-1-21) or a |
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| 98 | + | 14 group contract (as defined in IC 27-13-1-16) that provides |
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| 99 | + | 15 coverage for basic health care services (as defined in |
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| 100 | + | 16 IC 27-13-1-4). |
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| 101 | + | 17 (4) Any other plan or program that provides payment, |
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| 102 | + | 18 reimbursement, or indemnification to a covered individual for the |
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| 103 | + | 19 cost of prescription drugs. |
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| 104 | + | 20 SECTION 4. IC 27-1-24.5-6.5 IS ADDED TO THE INDIANA |
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| 105 | + | 21 CODE AS A NEW SECTION TO READ AS FOLLOWS |
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| 106 | + | 22 [EFFECTIVE JANUARY 1, 2026]: Sec. 6.5. As used in this chapter, |
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| 107 | + | 23 "insurer" means an insurer subject to state law and rules |
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| 108 | + | 24 regulating insurance or subject to the jurisdiction of the |
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| 109 | + | 25 department that contracts, or offers to contract, to: |
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| 110 | + | 26 (1) provide; |
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| 111 | + | 27 (2) deliver; |
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| 112 | + | 28 (3) arrange for; |
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| 113 | + | 29 (4) pay for; or |
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| 114 | + | 30 (5) reimburse; |
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| 115 | + | 31 any of the costs of health care services to a covered individual |
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| 116 | + | 32 under a health plan. |
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| 117 | + | 33 SECTION 5. IC 27-1-24.5-11.5 IS ADDED TO THE INDIANA |
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| 118 | + | 34 CODE AS A NEW SECTION TO READ AS FOLLOWS |
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| 119 | + | 35 [EFFECTIVE JANUARY 1, 2026]: Sec. 11.5. As used in this chapter, |
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| 120 | + | 36 "pharmacy benefit management services" means: |
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| 121 | + | 37 (1) negotiating the price of prescription drugs, including |
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| 122 | + | 38 negotiating and contracting for direct or indirect rebates, |
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| 123 | + | 39 discounts, or other price concessions; |
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| 124 | + | 40 (2) managing any aspect of a prescription drug benefit, |
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| 125 | + | 41 including: |
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| 126 | + | 42 (A) the processing and payment of claims for prescription |
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| 127 | + | EH 1604—LS 7577/DI 154 3 |
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| 128 | + | 1 drugs; |
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| 129 | + | 2 (B) arranging alternative access to or funding for |
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| 130 | + | 3 prescription drugs; |
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| 131 | + | 4 (C) the performance of drug utilization review; |
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| 132 | + | 5 (D) the processing of drug prior authorization requests; |
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| 133 | + | 6 (E) the adjudication of appeals or grievances related to the |
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| 134 | + | 7 prescription drug benefit; |
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| 135 | + | 8 (F) contracting with network pharmacies; |
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| 136 | + | 9 (G) controlling the cost of covered prescription drugs; |
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| 137 | + | 10 (H) managing or providing data relating to the |
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| 138 | + | 11 prescription drug benefit; |
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| 139 | + | 12 (I) the provision of services related to the prescription drug |
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| 140 | + | 13 benefit; or |
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| 141 | + | 14 (J) creating or updating prescription drug formularies; |
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| 142 | + | 15 (3) the performance of any administrative, managerial, |
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| 143 | + | 16 clinical, pricing, financial, reimbursement, data |
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| 144 | + | 17 administration or reporting, or billing service; and |
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| 145 | + | 18 (4) any other services specified in a rule adopted by the |
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| 146 | + | 19 department. |
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| 147 | + | 20 SECTION 6. IC 27-1-24.5-12, AS AMENDED BY P.L.32-2021, |
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| 148 | + | 21 SECTION 77, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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| 149 | + | 22 JANUARY 1, 2026]: Sec. 12. (a) As used in this chapter, "pharmacy |
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| 150 | + | 23 benefit manager" means: an entity that, on behalf of a health plan, state |
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| 151 | + | 24 agency, insurer, managed care organization, or other third party payor: |
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| 152 | + | 25 (1) a person who, under a written agreement with an insurer, |
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| 153 | + | 26 health plan, state agency, managed care organization, or other |
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| 154 | + | 27 third party payor, directly or indirectly provides one (1) or |
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| 155 | + | 28 more pharmacy benefit management services on behalf of the |
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| 156 | + | 29 insurer, health plan, state agency, managed care organization, |
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| 157 | + | 30 or other third party payor; and |
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| 158 | + | 31 (2) an agent, a contractor, an intermediary, an affiliate, a |
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| 159 | + | 32 subsidiary, or a related entity of a person described in |
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| 160 | + | 33 subdivision (1) who facilitates, provides, directs, or oversees |
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| 161 | + | 34 the provision of the pharmacy benefit management services. |
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| 162 | + | 35 (1) contracts directly or indirectly with pharmacies to provide |
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| 163 | + | 36 prescription drugs to individuals; |
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| 164 | + | 37 (2) administers a prescription drug benefit; |
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| 165 | + | 38 (3) processes or pays pharmacy claims; |
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| 166 | + | 39 (4) creates or updates prescription drug formularies; |
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| 167 | + | 40 (5) makes or assists in making prior authorization determinations |
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| 168 | + | 41 on prescription drugs; |
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| 169 | + | 42 (6) administers rebates on prescription drugs; or |
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| 170 | + | EH 1604—LS 7577/DI 154 4 |
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| 171 | + | 1 (7) establishes a pharmacy network. |
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| 172 | + | 2 (b) The term does not include the following: |
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| 173 | + | 3 (1) A person licensed under IC 16. |
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| 174 | + | 4 (2) A health provider who is: |
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| 175 | + | 5 (A) described in IC 25-0.5-1; and |
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| 176 | + | 6 (B) licensed or registered under IC 25. |
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| 177 | + | 7 (3) A consultant who only provides advice concerning the |
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| 178 | + | 8 selection or performance of a pharmacy benefit manager. |
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| 179 | + | 9 SECTION 7. IC 27-1-24.5-20, AS AMENDED BY P.L.158-2024, |
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| 180 | + | 10 SECTION 8, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE |
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| 181 | + | 11 JANUARY 1, 2026]: Sec. 20. (a) The commissioner shall do the |
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| 182 | + | 12 following: |
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| 183 | + | 13 (1) Prescribe an application for use in applying for a license to |
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| 184 | + | 14 operate as a pharmacy benefit manager. |
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| 185 | + | 15 (2) Adopt rules under IC 4-22-2 to establish the following: |
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| 186 | + | 16 (A) Pharmacy benefit manager licensing requirements. |
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| 187 | + | 17 (B) Licensing fees. |
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| 188 | + | 18 (C) A license application. |
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| 189 | + | 19 (D) Financial standards for pharmacy benefit managers. |
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| 190 | + | 20 (E) Reporting requirements described in sections 21 and 29 of |
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| 191 | + | 21 this chapter. |
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| 192 | + | 22 (F) The time frame for the resolution of an appeal under |
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| 193 | + | 23 section 22 of this chapter. |
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| 194 | + | 24 (b) The commissioner may do the following: |
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| 195 | + | 25 (1) Charge a license application fee and renewal fees established |
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| 196 | + | 26 under subsection (a)(2) in an amount not to exceed five hundred |
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| 197 | + | 27 dollars ($500) to be deposited in the department of insurance fund |
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| 198 | + | 28 established by IC 27-1-3-28. |
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| 199 | + | 29 (2) Examine or audit the books and records of a pharmacy benefit |
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| 200 | + | 30 manager one (1) time per year to determine if the pharmacy |
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| 201 | + | 31 benefit manager is in compliance with this chapter. |
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| 202 | + | 32 (3) Adopt rules under IC 4-22-2 to: |
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| 203 | + | 33 (A) implement this chapter; and |
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| 204 | + | 34 (B) specify requirements for the following: |
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| 205 | + | 35 (i) Prohibited market conduct practices. |
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| 206 | + | 36 (ii) Data reporting in connection with violations of state law. |
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| 207 | + | 37 (iii) Maximum allowable cost list compliance and |
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| 208 | + | 38 enforcement requirements, including the requirements of |
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| 209 | + | 39 sections 22 and 23 of this chapter. |
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| 210 | + | 40 (iv) Prohibitions and limits on pharmacy benefit manager |
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| 211 | + | 41 practices that require licensure under IC 25-22.5. |
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| 212 | + | 42 (v) Pharmacy benefit manager affiliate information sharing. |
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| 213 | + | EH 1604—LS 7577/DI 154 5 |
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| 214 | + | 1 (vi) Lists of health plans administered by a pharmacy benefit |
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| 215 | + | 2 manager in Indiana. |
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| 216 | + | 3 (vii) Pharmacy benefit management services included |
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| 217 | + | 4 under section 11.5(4) of this chapter. |
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| 218 | + | 5 (c) Financial information and proprietary information submitted by |
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| 219 | + | 6 a pharmacy benefit manager to the department is confidential. |
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| 220 | + | 7 SECTION 8. IC 27-1-24.5-27.7 IS ADDED TO THE INDIANA |
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| 221 | + | 8 CODE AS A NEW SECTION TO READ AS FOLLOWS |
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| 222 | + | 9 [EFFECTIVE JANUARY 1, 2026]: Sec. 27.7. (a) This section applies |
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| 223 | + | 10 to a health plan that is issued, delivered, amended, or renewed |
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| 224 | + | 11 after December 31, 2025. |
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| 225 | + | 12 (b) A pharmacy benefit manager shall apply the annual |
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| 226 | + | 13 limitation on cost sharing set forth in the federal Patient Protection |
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| 227 | + | 14 and Affordable Care Act under 42 U.S.C. 18022(c)(1) to |
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| 228 | + | 15 prescription drugs that: |
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| 229 | + | 16 (1) are covered under a health plan administered by the |
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| 230 | + | 17 pharmacy benefit manager; |
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| 231 | + | 18 (2) are life-saving or intended to manage chronic pain; and |
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| 232 | + | 19 (3) do not have an approved generic version. |
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| 233 | + | 20 (c) Except as provided in subsection (d), when calculating a |
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| 234 | + | 21 covered individual's contribution to an applicable cost sharing |
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| 235 | + | 22 requirement, a pharmacy benefit manager must include any cost |
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| 236 | + | 23 sharing amounts paid: |
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| 237 | + | 24 (1) by the covered individual; or |
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| 238 | + | 25 (2) on behalf of the covered individual by another person. |
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| 239 | + | 26 (d) If application of subsection (c) would result in a covered |
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| 240 | + | 27 individual becoming ineligible for a health savings account under |
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| 241 | + | 28 Section 223 of the Internal Revenue Code, the requirement under |
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| 242 | + | 29 subsection (c) applies with respect to the deductible of a high |
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| 243 | + | 30 deductible health plan after the covered individual satisfies the |
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| 244 | + | 31 minimum deductible under Section 223 of the Internal Revenue |
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| 245 | + | 32 Code. However, subsection (c) applies to items or services that are |
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| 246 | + | 33 preventative care under Section 223(c)(2)(C) of the Internal |
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| 247 | + | 34 Revenue Code regardless of whether the minimum deductible |
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| 248 | + | 35 under Section 223 of the Internal Revenue Code is satisfied. |
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| 249 | + | 36 (e) A pharmacy benefit manager may not directly or indirectly: |
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| 250 | + | 37 (1) set; |
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| 251 | + | 38 (2) alter; |
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| 252 | + | 39 (3) implement; or |
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| 253 | + | 40 (4) condition; |
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| 254 | + | 41 the terms of health plan coverage, including the benefit design, |
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| 255 | + | 42 based in part or entirely on information about the availability or |
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| 256 | + | EH 1604—LS 7577/DI 154 6 |
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| 257 | + | 1 amount of financial or product assistance available for a |
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| 258 | + | 2 prescription drug. |
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| 259 | + | 3 SECTION 9. IC 27-1-48.5 IS ADDED TO THE INDIANA CODE |
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| 260 | + | 4 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE |
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| 261 | + | 5 JULY 1, 2025]: |
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| 262 | + | 6 Chapter 48.5. Out-of-Pocket Expense Credit |
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| 263 | + | 7 Sec. 1. This chapter applies to a health plan entered into or |
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| 264 | + | 8 renewed after June 30, 2025. |
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| 265 | + | 9 Sec. 2. As used in this chapter, "covered individual" means an |
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| 266 | + | 10 individual entitled to coverage under a health plan. |
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| 267 | + | 11 Sec. 3. As used in this chapter, "health care provider" means an |
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| 268 | + | 12 individual or entity that is licensed, certified, registered, or |
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| 269 | + | 13 regulated by an entity described in IC 25-0.5-11. |
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| 270 | + | 14 Sec. 4. As used in this chapter, "health care services" means any |
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| 271 | + | 15 services or products rendered by a health care provider within the |
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| 272 | + | 16 scope of the provider's license or legal authorization. |
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| 273 | + | 17 Sec. 5. (a) As used in this chapter, "health plan" means any of |
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| 274 | + | 18 the following: |
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| 275 | + | 19 (1) A self-insurance program established under IC 5-10-8-7(b) |
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| 276 | + | 20 to provide group coverage. |
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| 277 | + | 21 (2) A prepaid health care delivery plan through which health |
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| 278 | + | 22 services are provided under IC 5-10-8-7(c). |
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| 279 | + | 23 (3) A policy of accident and sickness insurance as defined in |
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| 280 | + | 24 IC 27-8-5-1, but not including any insurance, plan, or policy |
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| 281 | + | 25 set forth in IC 27-8-5-2.5(a). |
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| 282 | + | 26 (4) An individual contract (as defined in IC 27-13-1-21) or a |
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| 283 | + | 27 group contract (as defined in IC 27-13-1-16) with a health |
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| 284 | + | 28 maintenance organization that provides coverage for basic |
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| 285 | + | 29 health care services (as defined in IC 27-13-1-4). |
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| 286 | + | 30 (b) The term includes a person that administers any of the |
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| 287 | + | 31 following: |
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| 288 | + | 32 (1) A self-insurance program established under IC 5-10-8-7(b) |
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| 289 | + | 33 to provide group coverage. |
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| 290 | + | 34 (2) A prepaid health care delivery plan through which health |
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| 291 | + | 35 services are provided under IC 5-10-8-7(c). |
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| 292 | + | 36 (3) A policy of accident and sickness insurance as defined in |
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| 293 | + | 37 IC 27-8-5-1, but not including any insurance, plan, or policy |
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| 294 | + | 38 set forth in IC 27-8-5-2.5(a). |
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| 295 | + | 39 (4) An individual contract (as defined in IC 27-13-1-21) or a |
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| 296 | + | 40 group contract (as defined in IC 27-13-1-16) with a health |
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| 297 | + | 41 maintenance organization that provides coverage for basic |
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| 298 | + | 42 health care services (as defined in IC 27-13-1-4). |
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| 299 | + | EH 1604—LS 7577/DI 154 7 |
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| 300 | + | 1 (c) The term includes hospital, medical, surgical, and |
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| 301 | + | 2 pharmaceutical services or products. |
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| 302 | + | 3 Sec. 6. As used in this chapter, "network" means a group of |
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| 303 | + | 4 health care providers that: |
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| 304 | + | 5 (1) provide health care services to covered individuals; and |
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| 305 | + | 6 (2) have agreed to, or are otherwise subject to, maximum |
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| 306 | + | 7 limits on the prices for the health care services to be provided |
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| 307 | + | 8 to the covered individuals. |
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| 308 | + | 9 Sec. 7. A health plan shall credit toward a covered individual's |
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| 309 | + | 10 deductible and annual maximum out-of-pocket expenses any |
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| 310 | + | 11 amount the covered individual pays directly to any health care |
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| 311 | + | 12 provider for a medically necessary covered health care service if a |
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| 312 | + | 13 claim for the health care service is not submitted to the health plan |
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| 313 | + | 14 and the amount paid by the covered individual to the health care |
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| 314 | + | 15 provider is less than the average discounted rate for the health care |
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| 315 | + | 16 service paid to a health care provider in the health plan's network. |
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| 316 | + | 17 Sec. 8. A health plan shall: |
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| 317 | + | 18 (1) establish a procedure by which a covered individual may |
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| 318 | + | 19 claim a credit under section 7 of this chapter; |
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| 319 | + | 20 (2) identify documentation necessary to support a claim for a |
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| 320 | + | 21 credit under section 7 of this chapter; and |
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| 321 | + | 22 (3) publish average discounted rates that the health plan has |
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| 322 | + | 23 negotiated to pay health care providers for health care |
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| 323 | + | 24 services. |
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| 324 | + | 25 Sec. 9. A health plan shall display information about the |
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| 325 | + | 26 procedure and documentation described in section 8 of this chapter |
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| 326 | + | 27 on its website. |
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| 327 | + | 28 Sec. 10. The department shall adopt rules under IC 4-22-2 to |
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| 328 | + | 29 effectuate the provisions of this chapter. |
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| 329 | + | 30 SECTION 10. IC 27-1-51 IS ADDED TO THE INDIANA CODE |
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| 330 | + | 31 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE |
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| 331 | + | 32 JANUARY 1, 2026]: |
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| 332 | + | 33 Chapter 51. Cost Sharing for Health Insurance Coverage |
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| 333 | + | 34 Sec. 1. This chapter applies to a policy of health insurance |
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| 334 | + | 35 coverage that is issued, delivered, amended, or renewed after |
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| 335 | + | 36 December 31, 2025. |
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| 336 | + | 37 Sec. 2. As used in this chapter, "administrator" means a person |
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| 337 | + | 38 who, directly or indirectly and on behalf of an insurer: |
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| 338 | + | 39 (1) underwrites; or |
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| 339 | + | 40 (2) collects charges or premiums from or adjusts or settles |
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| 340 | + | 41 claims on: |
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| 341 | + | 42 (A) residents of Indiana; or |
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| 342 | + | EH 1604—LS 7577/DI 154 8 |
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| 343 | + | 1 (B) residents of another state from offices in Indiana; |
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| 344 | + | 2 in connection with health insurance coverage offered or provided |
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| 345 | + | 3 by an insurer. |
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| 346 | + | 4 Sec. 3. As used in this chapter, "cost sharing" means any |
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| 347 | + | 5 copayment, coinsurance, deductible, or other similar charge that |
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| 348 | + | 6 is: |
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| 349 | + | 7 (1) required of a covered individual for a health care service |
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| 350 | + | 8 covered by a policy of health insurance coverage, including a |
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| 351 | + | 9 prescription drug; and |
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| 352 | + | 10 (2) paid: |
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| 353 | + | 11 (A) by; or |
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| 354 | + | 12 (B) on behalf of; |
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| 355 | + | 13 the covered individual. |
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| 356 | + | 14 Sec. 4. As used in this chapter, "covered individual" means an |
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| 357 | + | 15 individual who is entitled to health insurance coverage. |
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| 358 | + | 16 Sec. 5. As used in this chapter, "health care service" means a |
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| 359 | + | 17 service or good furnished for the purpose of preventing, |
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| 360 | + | 18 alleviating, curing, or healing: |
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| 361 | + | 19 (1) human illness; |
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| 362 | + | 20 (2) physical disability; or |
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| 363 | + | 21 (3) injury. |
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| 364 | + | 22 Sec. 6. (a) As used in this chapter, "health insurance coverage" |
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| 365 | + | 23 means: |
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| 366 | + | 24 (1) an individual or group policy of accident and sickness |
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| 367 | + | 25 insurance (as defined in IC 27-8-5-1); |
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| 368 | + | 26 (2) an individual contract (as defined in IC 27-13-1-21) or a |
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| 369 | + | 27 group contract (as defined in IC 27-13-1-16) that provides |
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| 370 | + | 28 coverage for basic health care services (as defined in |
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| 371 | + | 29 IC 27-13-1-4); and |
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| 372 | + | 30 (3) any other health plan that is issued on an individual or |
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| 373 | + | 31 group basis; |
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| 374 | + | 32 that is subject to state law and rules regulating insurance or |
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| 375 | + | 33 subject to the jurisdiction of the department. The term includes |
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| 376 | + | 34 coverage of a dependent of the covered individual under a policy |
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| 377 | + | 35 or contract described in subdivisions (1) through (3). |
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| 378 | + | 36 (b) The term does not include a self-funded health benefit plan |
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| 379 | + | 37 that complies with the federal Employee Retirement Income |
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| 380 | + | 38 Security Act (ERISA) of 1974 (29 U.S.C. 1001 et seq.). |
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| 381 | + | 39 Sec. 7. As used in this chapter, "insurer" means an insurer that |
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| 382 | + | 40 provides health insurance coverage to a covered individual. |
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| 383 | + | 41 Sec. 8. As used in this chapter, "person" means a natural |
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| 384 | + | 42 person, corporation, mutual company, unincorporated association, |
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| 385 | + | EH 1604—LS 7577/DI 154 9 |
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| 386 | + | 1 partnership, joint venture, limited liability company, trust, estate, |
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| 387 | + | 2 foundation, not-for-profit corporation, unincorporated |
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| 388 | + | 3 organization, government, or governmental subdivision or agency. |
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| 389 | + | 4 Sec. 9. An insurer and an administrator shall apply the annual |
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| 390 | + | 5 limitation on cost sharing set forth in the federal Patient Protection |
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| 391 | + | 6 and Affordable Care Act under 42 U.S.C. 18022(c)(1) to |
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| 392 | + | 7 prescription drugs that: |
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| 393 | + | 8 (1) are covered under a policy or contract of health insurance |
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| 394 | + | 9 coverage offered or issued by the insurer; |
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| 395 | + | 10 (2) are life-saving or intended to manage chronic pain; and |
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| 396 | + | 11 (3) do not have an approved generic version. |
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| 397 | + | 12 Sec. 10. (a) Except as provided in subsection (b), when |
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| 398 | + | 13 calculating a covered individual's contribution to an applicable |
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| 399 | + | 14 cost sharing requirement, an insurer and administrator must |
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| 400 | + | 15 include any cost sharing amounts paid: |
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| 401 | + | 16 (1) by the covered individual; and |
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| 402 | + | 17 (2) on behalf of the covered individual by another person. |
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| 403 | + | 18 (b) If application of subsection (a) would result in a covered |
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| 404 | + | 19 individual becoming ineligible for a health savings account under |
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| 405 | + | 20 Section 223 of the Internal Revenue Code, the requirement under |
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| 406 | + | 21 subsection (a) applies with respect to the deductible of a high |
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| 407 | + | 22 deductible health plan after the covered individual satisfies the |
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| 408 | + | 23 minimum deductible under Section 223 of the Internal Revenue |
---|
| 409 | + | 24 Code. However, subsection (a) applies to items or services that are |
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| 410 | + | 25 preventative care under Section 223(c)(2)(C) of the Internal |
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| 411 | + | 26 Revenue Code regardless of whether the minimum deductible |
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| 412 | + | 27 under Section 223 of the Internal Revenue Code is satisfied. |
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| 413 | + | 28 Sec. 11. An insurer and an administrator may not directly or |
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| 414 | + | 29 indirectly: |
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| 415 | + | 30 (1) set; |
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| 416 | + | 31 (2) alter; |
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| 417 | + | 32 (3) implement; or |
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| 418 | + | 33 (4) condition; |
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| 419 | + | 34 the terms of health insurance coverage, including the benefit |
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| 420 | + | 35 design, based in part or entirely on information about the |
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| 421 | + | 36 availability or amount of financial or product assistance available |
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| 422 | + | 37 for a prescription drug. |
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| 423 | + | 38 Sec. 12. Before December 31 of each year, each insurer and |
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| 424 | + | 39 administrator shall certify to the commissioner that the insurer or |
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| 425 | + | 40 administrator has fully and completely complied with the |
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| 426 | + | 41 requirements of this chapter during the previous calendar year. |
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| 427 | + | 42 The certification must be signed by the chief executive officer or |
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| 428 | + | EH 1604—LS 7577/DI 154 10 |
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| 429 | + | 1 chief financial officer of the insurer or administrator. |
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| 430 | + | 2 Sec. 13. The commissioner may adopt rules under IC 4-22-2 to |
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| 431 | + | 3 implement this chapter. |
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| 432 | + | EH 1604—LS 7577/DI 154 11 |
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| 433 | + | COMMITTEE REPORT |
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| 434 | + | Mr. Speaker: Your Committee on Insurance, to which was referred |
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| 435 | + | House Bill 1604, has had the same under consideration and begs leave |
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| 436 | + | to report the same back to the House with the recommendation that said |
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| 437 | + | bill be amended as follows: |
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| 438 | + | Page 3, line 6, delete "and". |
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| 439 | + | Page 3, line 8, delete "chapter." and insert "chapter; and". |
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| 440 | + | Page 3, between lines 8 and 9, begin a new line block indented and |
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| 441 | + | insert: |
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| 442 | + | "(3) publish average discounted rates that the health plan has |
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| 443 | + | negotiated to pay health care providers for health care |
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| 444 | + | services.". |
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| 445 | + | and when so amended that said bill do pass. |
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| 446 | + | (Reference is to HB 1604 as introduced.) |
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| 447 | + | CARBAUGH |
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| 448 | + | Committee Vote: yeas 11, nays 0. |
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| 449 | + | _____ |
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| 450 | + | COMMITTEE REPORT |
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| 451 | + | Mr. President: The Senate Committee on Insurance and Financial |
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| 452 | + | Institutions, to which was referred House Bill No. 1604, has had the |
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| 453 | + | same under consideration and begs leave to report the same back to the |
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| 454 | + | Senate with the recommendation that said bill be AMENDED as |
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| 455 | + | follows: |
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| 456 | + | Page 1, between the enacting clause and line 1, begin a new |
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| 457 | + | paragraph and insert: |
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| 458 | + | "SECTION 1. IC 27-1-24.5-0.8 IS ADDED TO THE INDIANA |
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204 | | - | prescription drug. |
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205 | | - | SECTION 9. IC 27-1-48.5 IS ADDED TO THE INDIANA CODE |
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206 | | - | AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE |
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207 | | - | JULY 1, 2025]: |
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208 | | - | HEA 1604 — CC 1 6 |
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209 | | - | Chapter 48.5. Out-of-Pocket Expense Credit |
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210 | | - | Sec. 1. This chapter applies to a health plan entered into or |
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211 | | - | renewed after June 30, 2025. |
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212 | | - | Sec. 2. As used in this chapter, "covered individual" means an |
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213 | | - | individual entitled to coverage under a health plan. |
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214 | | - | Sec. 3. As used in this chapter, "health care provider" means an |
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215 | | - | individual or entity that is licensed, certified, registered, or |
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216 | | - | regulated by an entity described in IC 25-0.5-11. |
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217 | | - | Sec. 4. As used in this chapter, "health care services" means any |
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218 | | - | services or products rendered by a health care provider within the |
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219 | | - | scope of the provider's license or legal authorization. |
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220 | | - | Sec. 5. (a) As used in this chapter, "health plan" means any of |
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221 | | - | the following: |
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222 | | - | (1) A self-insurance program established under IC 5-10-8-7(b) |
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223 | | - | to provide group coverage. |
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224 | | - | (2) A prepaid health care delivery plan through which health |
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225 | | - | services are provided under IC 5-10-8-7(c). |
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226 | | - | (3) A policy of accident and sickness insurance as defined in |
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227 | | - | IC 27-8-5-1, but not including any insurance, plan, or policy |
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228 | | - | set forth in IC 27-8-5-2.5(a). |
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229 | | - | (4) An individual contract (as defined in IC 27-13-1-21) or a |
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230 | | - | group contract (as defined in IC 27-13-1-16) with a health |
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231 | | - | maintenance organization that provides coverage for basic |
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232 | | - | health care services (as defined in IC 27-13-1-4). |
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233 | | - | (b) The term includes a person that administers any of the |
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234 | | - | following: |
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235 | | - | (1) A self-insurance program established under IC 5-10-8-7(b) |
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236 | | - | to provide group coverage. |
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237 | | - | (2) A prepaid health care delivery plan through which health |
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238 | | - | services are provided under IC 5-10-8-7(c). |
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239 | | - | (3) A policy of accident and sickness insurance as defined in |
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240 | | - | IC 27-8-5-1, but not including any insurance, plan, or policy |
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241 | | - | set forth in IC 27-8-5-2.5(a). |
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242 | | - | (4) An individual contract (as defined in IC 27-13-1-21) or a |
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243 | | - | group contract (as defined in IC 27-13-1-16) with a health |
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244 | | - | maintenance organization that provides coverage for basic |
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245 | | - | health care services (as defined in IC 27-13-1-4). |
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246 | | - | (c) The term includes hospital, medical, surgical, and |
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247 | | - | pharmaceutical services or products. |
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248 | | - | Sec. 6. As used in this chapter, "network" means a group of |
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249 | | - | health care providers that: |
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250 | | - | (1) provide health care services to covered individuals; and |
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251 | | - | HEA 1604 — CC 1 7 |
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252 | | - | (2) have agreed to, or are otherwise subject to, maximum |
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253 | | - | limits on the prices for the health care services to be provided |
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254 | | - | to the covered individuals. |
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255 | | - | Sec. 7. A health plan shall credit toward a covered individual's |
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256 | | - | deductible and annual maximum out-of-pocket expenses any |
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257 | | - | amount the covered individual pays directly to any health care |
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258 | | - | provider for a medically necessary covered health care service if a |
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259 | | - | claim for the health care service is not submitted to the health plan |
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260 | | - | and the amount paid by the covered individual to the health care |
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261 | | - | provider is less than the average discounted rate for the health care |
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262 | | - | service paid to a health care provider in the health plan's network. |
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263 | | - | Sec. 8. (a) A health plan shall: |
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264 | | - | (1) establish a procedure by which a covered individual may |
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265 | | - | claim a credit under section 7 of this chapter; and |
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266 | | - | (2) identify documentation necessary to support a claim for a |
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267 | | - | credit under section 7 of this chapter. |
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268 | | - | (b) A health plan may either: |
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269 | | - | (1) publish average discounted rates that the health plan has |
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270 | | - | negotiated to pay health care providers for health care |
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271 | | - | services; or |
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272 | | - | (2) refer to average or typical rates on the all payer claims |
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273 | | - | data base established under IC 27-1-44.5; |
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274 | | - | for purposes of a covered individual claiming a credit under |
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275 | | - | section 7 of this chapter. |
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276 | | - | (c) A covered individual may use the data on average or typical |
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277 | | - | rates reported on the all payer claims data base established under |
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278 | | - | IC 27-1-44.5 to determine the average discounted rate for a health |
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279 | | - | care service under section 7 of this chapter. |
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280 | | - | Sec. 9. A health plan shall display information about the |
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281 | | - | procedure and documentation described in section 8 of this chapter |
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282 | | - | on the health plan's website, including a link to the website for the |
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283 | | - | all payer claims data base established under IC 27-1-44.5. |
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284 | | - | Sec. 10. The department shall adopt rules under IC 4-22-2 to |
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285 | | - | effectuate the provisions of this chapter. |
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286 | | - | SECTION 10. IC 27-1-51 IS ADDED TO THE INDIANA CODE |
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| 649 | + | prescription drug.". |
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| 650 | + | Page 1, line 12, delete "(a)". |
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| 651 | + | Page 2, delete lines 11 through 13. |
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| 652 | + | Page 2, delete lines 27 through 29. |
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| 653 | + | Page 2, line 30, delete "(b)" and insert "(c)". |
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| 654 | + | Page 3, after line 16, begin a new paragraph and insert: |
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| 655 | + | "SECTION 10. IC 27-1-51 IS ADDED TO THE INDIANA CODE |
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