Maryland 2025 Regular Session

Maryland House Bill HB1243 Compare Versions

OldNewDifferences
11
22
33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *hb1243*
96
107 HOUSE BILL 1243
118 J5 5lr2645
129 CF SB 975
13-By: Delegate S. Johnson Delegates S. Johnson, Alston, Bagnall, Bhandari,
14-Chisholm, Cullison, Guzzone, Hill, Hutchinson, Kaiser, Kerr, Kipke, Lopez,
15-Martinez, M. Morgan, Pena–Melnyk, Reilly, Rosenberg, Ross, Szeliga,
16-Taveras, White Holland, Woods, and Woorman
10+By: Delegate S. Johnson
1711 Introduced and read first time: February 7, 2025
1812 Assigned to: Health and Government Operations
19-Committee Report: Favorable with amendments
20-House action: Adopted
21-Read second time: March 1, 2025
2213
23-CHAPTER ______
14+A BILL ENTITLED
2415
2516 AN ACT concerning 1
2617
2718 Health Insurance – Coverage for Specialty Drugs 2
2819
2920 FOR the purpose of prohibiting certain insurers, nonprofit health service plans, and health 3
3021 maintenance organizations from excluding coverage for certain specialty drugs that 4
3122 are administered or dispensed by a provider that meets certain criteria; requiring 5
3223 the reimbursement rate for certain specialty drugs to meet certain criteria; and 6
3324 generally relating to health insurance coverage for specialty drugs. 7
3425
3526 BY repealing and reenacting, without amendments, 8
3627 Article – Insurance 9
3728 Section 15–847(a)(1) and (5) 10
3829 Annotated Code of Maryland 11
3930 (2017 Replacement Volume and 2024 Supplement) 12
4031
4132 BY repealing and reenacting, with amendments, 13
4233 Article – Insurance 14
4334 Section 15–847(d), 15–1611.1, and 15–1612 15
4435 Annotated Code of Maryland 16
4536 (2017 Replacement Volume and 2024 Supplement) 17
4637
4738 BY adding to 18
48- Article – Insurance 19 2 HOUSE BILL 1243
39+ Article – Insurance 19
40+Section 15–847.2 20
41+ Annotated Code of Maryland 21
42+ (2017 Replacement Volume and 2024 Supplement) 22
43+
44+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
45+That the Laws of Maryland read as follows: 24
46+
47+Article – Insurance 25
48+ 2 HOUSE BILL 1243
4949
5050
51-Section 15–847(h) and 15–847.2 1
52- Annotated Code of Maryland 2
53- (2017 Replacement Volume and 2024 Supplement) 3
51+15–847. 1
5452
55- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4
56-That the Laws of Maryland read as follows: 5
53+ (a) (1) In this section the following words have the meanings indicated. 2
5754
58-Article – Insurance 6
55+ (5) (i) “Specialty drug” means a prescription drug that: 3
5956
60-15–847. 7
57+ 1. is prescribed for an individual with a complex or chronic 4
58+medical condition or a rare medical condition; 5
6159
62- (a) (1) In this section the following words have the meanings indicated. 8
60+ 2. costs $600 or more for up to a 30–day supply; 6
6361
64- (5) (i) “Specialty drug” means a prescription drug that: 9
62+ 3. is not typically stocked at retail pharmacies; and 7
6563
66- 1. is prescribed for an individual with a complex or chronic 10
67-medical condition or a rare medical condition; 11
64+ 4. A. requires a difficult or unusual process of delivery to 8
65+the patient in the preparation, handling, storage, inventory, or distribution of the drug; or 9
6866
69- 2. costs $600 or more for up to a 30–day supply; 12
67+ B. requires enhanced patient education, management, or 10
68+support, beyond those required for traditional dispensing, before or after administration of 11
69+the drug. 12
7070
71- 3. is not typically stocked at retail pharmacies; and 13
71+ (ii) “Specialty drug” does not include a prescription drug prescribed 13
72+to treat diabetes, HIV, or AIDS. 14
7273
73- 4. A. requires a difficult or unusual process of delivery to 14
74-the patient in the preparation, handling, storage, inventory, or distribution of the drug; or 15
74+ (d) Subject to § 15–805 of this subtitle [and], notwithstanding § 15–806 of this 15
75+subtitle, [nothing in] AND EXCEPT AS PROVIDED IN § 15–847.2 OF THIS SUBTITLE, this 16
76+article or regulations adopted under this article [precludes] DO NOT PRECLUDE an entity 17
77+subject to this section from requiring a covered specialty drug to be obtained through: 18
7578
76- B. requires enhanced patient education, management, or 16
77-support, beyond those required for traditional dispensing, before or after administration of 17
78-the drug. 18
79+ (1) a designated pharmacy or other source authorized under the Health 19
80+Occupations Article to dispense or administer prescription drugs; or 20
7981
80- (ii) “Specialty drug” does not include a prescription drug prescribed 19
81-to treat diabetes, HIV, or AIDS. 20
82+ (2) a pharmacy participating in the entity’s provider network, if the entity 21
83+determines that the pharmacy: 22
8284
83- (d) Subject to SUBSECTION (H) OF THIS SECTION AND § 15–805 of this subtitle 21
84-[and], notwithstanding § 15–806 of this subtitle, [nothing in] AND EXCEPT AS PROVID ED 22
85-IN § 15–847.2 OF THIS SUBTITLE , this article or regulations adopted under this article 23
86-[precludes] DO NOT PRECLUDE an entity subject to this section from requiring a covered 24
87-specialty drug to be obtained through: 25
85+ (i) meets the entity’s performance standards; and 23
8886
89- (1) a designated pharmacy or other source authorized under the Health 26
90-Occupations Article to dispense or administer prescription drugs; or 27
87+ (ii) accepts the entity’s network reimbursement rates. 24
9188
92- (2) a pharmacy participating in the entity’s provider network, if the entity 28
93-determines that the pharmacy: 29
89+15–847.2. 25
9490
95- (i) meets the entity’s performance standards; and 30
91+ (A) IN THIS SECTION, “SPECIALTY DRUG ” HAS THE MEANING STAT ED IN § 26
92+15–847 OF THIS SUBTITLE . 27
9693
97- (ii) accepts the entity’s network reimbursement rates. 31 HOUSE BILL 1243 3
94+ (B) (1) THIS SECTION APPLIES TO: 28
95+ HOUSE BILL 1243 3
96+
97+
98+ (I) INSURERS AND NONPROF IT HEALTH SERVICE PLANS THAT 1
99+PROVIDE COVERAGE FOR PRESCRIPTION DRUGS U NDER INDIVIDUAL , GROUP, OR 2
100+BLANKET HEALTH INSUR ANCE POLICIES OR CON TRACTS THAT ARE ISSU ED OR 3
101+DELIVERED IN THE STATE; AND 4
102+
103+ (II) HEALTH MAINTENANCE O RGANIZATIONS THAT PR OVIDE 5
104+COVERAGE FOR PRESCRI PTION DRUGS UNDER IN DIVIDUAL OR GROUP CO NTRACTS 6
105+THAT ARE ISSUED OR D ELIVERED IN THE STATE. 7
106+
107+ (2) AN INSURER, A NONPROFIT HEALTH S ERVICE PLAN, OR A HEALTH 8
108+MAINTENANCE ORGANIZA TION THAT PROVIDES C OVERAGE FOR PRESCRIP TION 9
109+DRUGS THROUGH A PHAR MACY BENEFITS MA NAGER IS SUBJECT TO THE 10
110+REQUIREMENTS OF THIS SECTION. 11
111+
112+ (C) AN ENTITY SUBJECT TO THIS SECTION MAY NOT EXCLUDE COVERAGE 12
113+FOR A COVERED SPECIA LTY DRUG ADMINISTERE D OR DISPENSED BY A PROVIDER 13
114+UNDER § 12–102 OF THE HEALTH OCCUPATIONS ARTICLE IF THE ENTITY 14
115+DETERMINES THAT: 15
116+
117+ (1) THE PROVIDER THAT AD MINISTERS OR DISPENS ES THE COVERED 16
118+SPECIALTY DRUG : 17
119+
120+ (I) IS AN IN–NETWORK PROVIDER OF COVERED MEDICAL 18
121+ONCOLOGY SERVICES ; AND 19
122+
123+ (II) COMPLIES WITH STATE REGULATIONS FOR THE 20
124+ADMINISTERING AND DI SPENSING OF SPECIALT Y DRUGS; AND 21
125+
126+ (2) THE COVERED SPECIALT Y DRUG IS: 22
127+
128+ (I) INFUSED, AUTO–INJECTED, OR AN ORAL TARGETED 23
129+IMMUNE MODULATOR ; OR 24
130+
131+ (II) AN ORAL MEDICATION T HAT: 25
132+
133+ 1. REQUIRES COMPLEX DOS ING BASED ON CLINICA L 26
134+PRESENTATION ; OR 27
135+
136+ 2. IS USED CONCOMITANTL Y WITH OTHER INFUSION OR 28
137+RADIATION THERAPIES . 29
138+
139+ (D) THE REIMBURSEMENT RAT E FOR SPECIALTY DRUG S COVERED UNDER 30
140+THIS SECTION SHALL B E: 31 4 HOUSE BILL 1243
98141
99142
100143
101- (H) THIS SECTION MAY NOT BE CONSTRUED TO SUPE RSEDE THE AUTHORITY 1
102-OF THE HEALTH SERVICES COST REVIEW COMMISSION TO SET RAT ES FOR 2
103-SPECIALTY DRUGS ADMI NISTERED TO PATIENTS IN A SETTING REGULAT ED BY THE 3
104-HEALTH SERVICES COST REVIEW COMMISSION. 4
144+ (1) AGREED TO BY THE COV ERED, IN–NETWORK PROVIDER AND THE 1
145+ENTITY SUBJECT TO TH IS SECTION; AND 2
105146
106-15–847.2. 5
147+ (2) BILLED AT A NONHOSPI TAL LEVEL OF CARE OR PLA CE OF 3
148+SERVICE. 4
107149
108- (A) IN THIS SECTION, “SPECIALTY DRUG ” HAS THE MEANING STAT ED IN § 6
109-15–847 OF THIS SUBTITLE . 7
150+ (E) THIS SECTION DOES NOT PROHIBIT AN ENTITY S UBJECT TO THIS 5
151+SECTION FROM REFUSIN G TO AUTHORIZE OR AP PROVE OR FROM DENYIN G 6
152+COVERAGE FOR A COVER ED SPECIALTY DRUG AD MINISTERED OR DISPEN SED BY A 7
153+PROVIDER IF ADMINIST ERING OR DISPENSING THE DRU G FAILS TO SATISFY 8
154+MEDICAL NECESSITY CR ITERIA. 9
110155
111- (B) (1) THIS SECTION APPLIES TO: 8
156+15–1611.1. 10
112157
113- (I) INSURERS AND NONPROF IT HEALTH SERVICE PL ANS THAT 9
114-PROVIDE COVERAGE FOR PRESCRIPTION DRUGS UNDER INDIVIDUAL , GROUP, OR 10
115-BLANKET HEALTH INSUR ANCE POLICIES OR CON TRACTS THAT ARE ISSU ED OR 11
116-DELIVERED IN THE STATE; AND 12
158+ (a) This section applies only to a pharmacy benefits manager that provides 11
159+pharmacy benefits management services on behalf of a carrier. 12
117160
118- (II) HEALTH MAINTENANCE O RGANIZATIONS THAT PR OVIDE 13
119-COVERAGE FOR PRESCRI PTION DRUGS UNDER IN DIVIDUAL OR GROUP CO NTRACTS 14
120-THAT ARE ISSUED OR DELIVERED I N THE STATE. 15
161+ (b) Except as provided in subsection (c) of this section, a pharmacy benefits 13
162+manager may not require that a beneficiary use a specific pharmacy or entity to fill a 14
163+prescription if: 15
121164
122- (2) AN INSURER, A NONPROFIT HEALTH S ERVICE PLAN, OR A HEALTH 16
123-MAINTENANCE ORGANIZA TION THAT PROVIDES C OVERAGE FOR PRESCRIP TION 17
124-DRUGS THROUGH A PHAR MACY BENEFITS MANAGE R IS SUBJECT TO THE 18
125-REQUIREMENTS OF THIS SECTION. 19
165+ (1) the pharmacy benefits manager or a corporate affiliate of the pharmacy 16
166+benefits manager has an ownership interest in the pharmacy or entity; or 17
126167
127- (C) AN ENTITY SUBJECT TO THIS SECTION MAY NOT EXCLUDE COVERAGE 20
128-FOR A COVERED SPECIA LTY DRUG ADMINISTERE D OR DISPENSED BY A PROVIDER 21
129-UNDER § 12–102 OF THE HEALTH OCCUPATIONS ARTICLE IF THE ENTITY 22
130-DETERMINES THAT : 23
168+ (2) the pharmacy or entity has an ownership interest in the pharmacy 18
169+benefits manager or a corporate affiliate of the pharmacy benefits manager. 19
131170
132- (1) THE PROVIDER THAT AD MINISTERS OR DISPENSES THE COVERE D 24
133-SPECIALTY DRUG : 25
171+ (c) [A] EXCEPT AS PROVIDED IN § 15–847.2 OF THIS TITLE, A pharmacy 20
172+benefits manager may require a beneficiary to use a specific pharmacy or entity for a 21
173+specialty drug as defined in § 15–847 of this title. 22
134174
135- (I) IS AN IN–NETWORK PROVIDER OF COVERED MEDICAL 26
136-ONCOLOGY SERVICES ; AND 27
175+15–1612. 23
137176
138- (II) COMPLIES WITH STATE REGULATIONS FOR THE 28
139-ADMINISTERING AND DI SPENSING OF SPECIALT Y DRUGS; AND 29
177+ (a) This section applies only to a pharmacy benefits manager that provides 24
178+pharmacy benefits management services on behalf of a carrier. 25
140179
141- (2) THE COVERED SPECIALT Y DRUG IS: 30
142- 4 HOUSE BILL 1243
180+ (b) This section does not apply to reimbursement: 26
181+
182+ (1) EXCEPT AS PROVIDED I N § 15–847.2 OF THIS TITLE, for specialty 27
183+drugs; 28
184+
185+ (2) for mail order drugs; or 29
186+
187+ (3) to a chain pharmacy with more than 15 stores or a pharmacist who is 30
188+an employee of the chain pharmacy. 31 HOUSE BILL 1243 5
143189
144190
145- (I) INFUSED, AUTO–INJECTED, OR AN ORAL TARGETED 1
146-IMMUNE MODULATOR ; OR 2
147191
148- (II) AN ORAL MEDICATION T HAT: 3
192+ (c) A pharmacy benefits manager may not reimburse a pharmacy or pharmacist 1
193+for a pharmaceutical product or pharmacist service in an amount less than the amount that 2
194+the pharmacy benefits manager reimburses itself or an affiliate for providing the same 3
195+product or service. 4
149196
150- 1. REQUIRES COMPLEX DOS ING BASED ON CLINICA L 4
151-PRESENTATION ; OR 5
197+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to all 5
198+policies, contracts, and health benefit plans issued, delivered, or renewed in the State on or 6
199+after January 1, 2026. 7
152200
153- 2. IS USED CONCOMITANTL Y WITH OTHER INFUSIO N OR 6
154-RADIATION THERAPIES . 7
201+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
202+January 1, 2026. 9
155203
156- (D) (1) THE SUBJECT TO SUBSECTION (F) OF THIS SECTION , THE 8
157-REIMBURSEMENT RATE F OR SPECIALTY DRUGS COVE RED UNDER THIS SECTI ON 9
158-SHALL BE: 10
159-
160- (1) (I) AGREED TO BY THE COV ERED, IN–NETWORK PROVIDER AND 11
161-THE ENTITY SUBJECT T O THIS SECTION; AND 12
162-
163- (2) (II) BILLED AT A NONHOSPITAL LEVEL OF CARE OR PLACE OF 13
164-SERVICE. 14
165-
166- (2) UNLESS OTHERWISE AGRE ED TO BY THE COVERED , IN–NETWORK 15
167-PROVIDER AND THE ENT ITY SUBJECT TO THIS SECTION, THE REIMBURSEMENT RA TE 16
168-FOR SPECIALTY DRUGS COVERED UNDER THIS S ECTION MAY NOT EXCEE D THE RATE 17
169-APPLICABLE TO A DESI GNATED SPECIALTY PHA RMACY FOR DISPENSING THE 18
170-COVERED SPECIALTY DR UGS. 19
171-
172- (E) THIS SECTION DOES NOT PROHIBIT AN ENTITY S UBJECT TO THIS 20
173-SECTION FROM REFUSIN G TO AUTHORIZE OR AP PROVE OR FROM DENYIN G 21
174-COVERAGE FOR A COVER ED SPECIALTY DRUG ADMINISTERED OR DISP ENSED BY A 22
175-PROVIDER IF ADMINIST ERING OR DISPENSING THE DRUG FAILS TO SA TISFY 23
176-MEDICAL NECESSITY CR ITERIA. 24
177-
178- (F) THIS SECTION MAY NOT BE CONSTRUED TO SUPE RSEDE THE AUTHORITY 25
179-OF THE HEALTH SERVICES COST REVIEW COMMISSION TO SET RAT ES FOR 26
180-SPECIALTY DRUGS ADMIN ISTERED TO PATIENTS IN A SETTING REGULAT ED BY THE 27
181-HEALTH SERVICES COST REVIEW COMMISSION. 28
182-
183-15–1611.1. 29
184-
185- (a) This section applies only to a pharmacy benefits manager that provides 30
186-pharmacy benefits management services on behalf of a carrier. 31
187- HOUSE BILL 1243 5
188-
189-
190- (b) Except as provided in subsection (c) of this section, a pharmacy benefits 1
191-manager may not require that a beneficiary use a specific pharmacy or entity to fill a 2
192-prescription if: 3
193-
194- (1) the pharmacy benefits manager or a corporate affiliate of the pharmacy 4
195-benefits manager has an ownership interest in the pharmacy or entity; or 5
196-
197- (2) the pharmacy or entity has an ownership interest in the pharmacy 6
198-benefits manager or a corporate affiliate of the pharmacy benefits manager. 7
199-
200- (c) [A] EXCEPT AS PRO VIDED IN § 15–847.2 OF THIS TITLE, A pharmacy 8
201-benefits manager may require a beneficiary to use a specific pharmacy or entity for a 9
202-specialty drug as defined in § 15–847 of this title. 10
203-
204-15–1612. 11
205-
206- (a) This section applies only to a pharmacy benefits manager that provides 12
207-pharmacy benefits management services on behalf of a carrier. 13
208-
209- (b) This section does not apply to reimbursement: 14
210-
211- (1) EXCEPT AS PROVIDED I N § 15–847.2 OF THIS TITLE, for specialty 15
212-drugs; 16
213-
214- (2) for mail order drugs; or 17
215-
216- (3) to a chain pharmacy with more than 15 stores or a pharmacist who is 18
217-an employee of the chain pharmacy. 19
218-
219- (c) A pharmacy benefits manager may not reimburse a pharmacy or pharmacist 20
220-for a pharmaceutical product or pharmacist service in an amount less than the amount that 21
221-the pharmacy benefits manager reimburses itself or an affiliate for providing the same 22
222-product or service. 23
223-
224- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to all 24
225-policies, contracts, and health benefit plans issued, delivered, or renewed in the State on or 25
226-after January 1, 2026. 26
227-
228- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 27
229-January 1, 2026. 28