HLS 16RS-3381 REENGROSSED 2016 Regular Session HOUSE BILL NO.1151 (Substitute for House Bill No. 849 by Representative Robert Johnson) BY REPRESENTATIVES ROBERT JOHNSON, BROADWATER, TERRY BROWN, DAVIS, HAVARD, HAZEL, HORTON, MIGUEZ, PYLANT, WILLMOTT, AND ZERINGUE INSURANCE/HEALTH: Provides relative to notice and appeal of a change in coverage of medically necessary prescription drugs and intravenous infusions 1 AN ACT 2To amend and reenact R.S. 22:1060.4(A)(introductory paragraph) and (B) and to enact R.S. 3 22:1060.3(C), relative to coverage of medically necessary prescription drugs and 4 intravenous infusions; to provide for notice by a health insurance issuer making a 5 change in such coverage; to provide relative to an appeal of any such change by the 6 insured; to make certain technical changes; and to provide for related matters. 7Be it enacted by the Legislature of Louisiana: 8 Section 1. R.S. 22:1060.4(A)(introductory paragraph) and (B) are hereby amended 9and reenacted and R.S. 22:1060.3(C) is hereby enacted to read as follows: 10 §1060.3. Continuation of coverage required; other drugs not precluded 11 * * * 12 C.(1) A health insurance issuer proposing to change its coverage of a 13 particular prescription drug or intravenous infusion based on medical necessity shall 14 give notice of the proposed change to an insured currently using that prescription 15 drug who the health insurance issuer determines the change may affect; however, 16 such notice to an insured shall be required if the health insurance issuer has covered 17 the drug or intravenous infusion for the insured for at least the preceding sixty days. Page 1 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-3381 REENGROSSED HB NO. 1151 1 Such notice shall be sent at least sixty days prior to the effective date of the proposed 2 change. 3 (2) Any insured receiving such a notice from a health insurance issuer shall 4 have the right to appeal the proposed change during the sixty-day notification period 5 provided for in Paragraph (1) of this Subsection in accordance with the Internal 6 Claims and Appeals Process and External Review Act, R.S. 22:2391 et seq. In filing 7 such an appeal, the insured shall document that his physician or authorized prescriber 8 considers continued use of the drug or intravenous infusion to be medically 9 necessary. 10 §1060.4. Adverse determination 11 A. The refusal of a health insurance issuer to provide benefits to an enrollee 12 for a prescription drug is an adverse determination for the purposes of Subpart F of 13 this Part, R.S. 22:1121 et seq., relative to medical necessity review organizations, the 14 Internal Claims and Appeals Process and External Review Act, R.S. 22:2391 et seq., 15 if each of the following conditions is met: 16 * * * 17 B. The enrollee may appeal the adverse determination pursuant to Subpart 18 F of this Part, R.S. 22:1121 et seq., relative to medical necessity review 19 organizations. the Internal Claims and Appeals Process and External Review Act, 20 R.S. 22:2391 et seq. 21 Section 2. This Act shall apply only to a health benefit plan delivered, issued for 22delivery, or renewed on or after January 1, 2017. This Act shall not apply to a health benefit 23plan delivered, issued for delivery, or renewed before January 1, 2017. 24 Section 3. This Act shall become effective on January 1, 2017. Page 2 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 16RS-3381 REENGROSSED HB NO. 1151 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 1151 Reengrossed 2016 Regular Session Robert Johnson Abstract: Provides relative to notice and appeal of a change in coverage of medically necessary prescription drugs and intravenous infusions. Proposed law requires that a health insurance issuer proposing to change its coverage of a particular prescription drug or intravenous infusion based on medical necessity give notice of the proposed change to an insured currently using that prescription drug who the health insurance issuer determines the change may affect; however, specifies that such notice shall be required if the health insurance issuer has covered the drug or intravenous infusion for the insured for at least the preceding 60 days. Requires that any such notice shall be sent at least 60 days prior to the effective date of the proposed change. Proposed law further provides that any insured receiving such a notice from a health insurance issuer shall have the right to appeal the proposed change during the 60-day notification period in accordance with present law, the state's appeals law, the Internal Claims and Appeals Process and External Review Act. Also requires that, in filing such an appeal, the insured shall document that his physician or authorized prescriber considers continued use of the drug or intravenous infusion to be medically necessary. Proposed law makes certain technical changes, in particular to references and citations to present law, the state's appeals law, the Internal Claims and Appeals Process and External Review Act. Proposed law provides that it shall apply only to a health benefit plan delivered, issued for delivery, or renewed on or after Jan. 1, 2017, and shall not apply to a health benefit plan delivered, issued for delivery, or renewed before Jan. 1, 2017. Effective January 1, 2017. (Amends R.S. 22:1060.4(A)(intro. para.) and (B); Adds R.S. 22:1060.3(C)) Summary of Amendments Adopted by House The House Floor Amendments to the engrossed bill: 1. Delete provision specifying that the notice shall not be required if the drug or intravenous infusion has been covered for the insured for less than 60 days. Instead provide that the notice shall be required if the drug or intravenous infusion has been covered for the insured for at least the preceding 60 days. Page 3 of 3 CODING: Words in struck through type are deletions from existing law; words underscored are additions.