SLS 12RS-596 ENGROSSED Page 1 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. Regular Session, 2012 SENATE BILL NO. 231 BY SENATOR MURRAY HEALTH/ACC INSURANCE. Provides relative to prior authorization forms. (gov sig) AN ACT1 To enact R.S. 22:1006.1, relative to prior authorization forms; to provide with respect to the2 issuance and use of prior authorization forms; to provide for an effective date; and3 to provide for related matters.4 Be it enacted by the Legislature of Louisiana:5 Section 1. R.S. 22:1006.1 is hereby enacted to read as follows:6 §1006.1. Prior authorization forms required; criteria7 A. As used in this Section:8 (1) “Health insurance issuer” means any entity that offers health9 insurance coverage through a plan, policy, or certificate of insurance subject to10 state law that regulates the business of insurance. “Health insurance issuer”11 shall also include a health maintenance organization, as defined and licensed12 pursuant to Subpart I of Chapter 2 of this Title.13 (2) "Health benefit plan", "plan", "benefit", or "health insurance14 coverage" means services consisting of medical care, provided directly, through15 insurance or reimbursement, or otherwise, and including items and services16 paid for as medical care under any hospital or medical service policy or17 SB NO. 231 SLS 12RS-596 ENGROSSED Page 2 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. certificate, hospital or medical service plan contract, preferred provider1 organization, or health maintenance organization contract offered by a health2 insurance issuer. However, excepted benefits are not included as a "health3 benefit plan".4 (3) “Prior authorization” shall mean a utilization management criteria5 utilized to seek permission or waiver of a drug to be covered under a health6 benefit plan that provides prescription drug benefits.7 (4) “Prior authorization form” shall mean a standardized, uniform8 application developed by a health insurance issuer for the purpose of obtaining9 prior authorization.10 B. Notwithstanding any other provision of law to the contrary, in order11 to establish uniformity in the submission of prior authorization forms, on and12 after January 1, 2013, a health insurance issuer shall only utilize a single,13 standardized prior authorization form for obtaining any prior authorization for14 prescription drug benefits. Such form shall not exceed two pages in length,15 excluding any instructions or guiding documentation. Such form shall be16 accessible through multiple computer operating systems. Additionally, the17 health insurance issuer shall submit its prior authorization forms to the18 Department of Insurance to be kept on file on or after January 1, 2013. A copy19 of any subsequent replacements or modifications of a health insurance issuer's20 prior authorization form shall be filed with the Department of Insurance within21 fifteen days prior to use or implementation of such replacements or22 modifications. 23 Section 2. This Act shall become effective upon signature by the governor or, if not24 signed by the governor, upon expiration of the time for bills to become law without signature25 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If26 vetoed by the governor and subsequently approved by the legislature, this Act shall become27 effective the day following such approval.28 SB NO. 231 SLS 12RS-596 ENGROSSED Page 3 of 3 Coding: Words which are struck through are deletions from existing law; words in boldface type and underscored are additions. The original instrument and the following digest, which constitutes no part of the legislative instrument, were prepared by Cheryl Horne. DIGEST Murray (SB 231) Proposed law defines "health insurance issuer", "health benefit plan", "plan", "benefit", "health insurance coverage", "prior authorization", and "prior authorization form". Proposed law, applicable on and after January 1, 2013, requires a health insurance issuer that provides prescription drug benefits to use only a single, standardized prior authorization form for obtaining any prior authorization for prescription drug benefits. Further provides that such form shall not exceed two pages in length, be accessible through multiple computer operating systems, and be filed with the Department of Insurance on or after January 1, 2013. Effective upon signature of the governor or lapse of time for gubernatorial action. (Adds R.S. 22:1006.1) Summary of Amendments Adopted by Senate Committee Amendments Proposed by Senate Committee on Insurance to the original bill. 1. Provides definitions for "health insurance issuer", "health benefit plan", "plan", "benefit", "health insurance coverage", "prior authorization" and "prior authorization form". 2. Requires a health insurance issuer to use only a single, standardized prior authorization form for obtaining any prior authorization for prescription drug benefits. Requires the form to be accessible through multiple computer operating systems. Further provides that such form shall not exceed two pages in length and be filed with the Department of Insurance on or after January 1, 2013.