Health insurance; prohibit modifications on renewal of covered and prescribed prescription drug's contracted benefit level.
Impact
Effective from July 1, 2024, all individual and group health insurance policies in Mississippi will be required to adhere to this prohibition on modifications during the renewal process. This includes various types of health plans such as those provided by non-profit corporations, health maintenance organizations, and managed care entities, as long as federal law does not preempt such requirements. This regulation ensures that patients can continue their prescribed medication without interruption or financial burden due to increased out-of-pocket costs.
Summary
House Bill 339 aims to protect insured individuals from potential changes in their health insurance coverage on renewal, specifically regarding prescription drugs. This bill will prohibit insurance providers from altering the contracted benefit level for any prescription drug that has been previously covered and prescribed for a medical condition or mental illness during the prior plan year. By ensuring that these drugs remain covered at the same level upon renewal, the bill seeks to provide stability for patients who rely on consistent access to necessary medications.
Contention
While the bill aims to offer protection for those relying on specific medications, there may be concerns from insurance companies regarding the potential for increased costs due to the restrictions on altering coverage. Moreover, the bill clarifies certain exceptions where changes to coverage may still occur, such as in instances where the FDA has flagged a drug for safety issues, or if a drug manufacturer has notified about a discontinuance. This balance is designed to safeguard patient interests while also addressing the operational considerations of health insurers.