GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H D HOUSE BILL DRH40336-MRa-91 Short Title: Ensure Access to Biomarker Testing. (Public) Sponsors: Representative Wheatley. Referred to: *DRH40336 -MRa-91* A BILL TO BE ENTITLED 1 AN ACT TO ENSURE ACCESS TO AN EARLY AND ACCURATE DIAGNOSIS OF 2 DEMENTIA IN ORDER TO IMPROVE ACCESS TO CARE AND SUPPORT SERVICES 3 FOR, ENHANCE THE QUALITY OF LIFE OF, AND REDUCE THE FINANCIAL 4 IMPACT OF THE CONDITION ON NORTH CAROLINIANS. 5 The General Assembly of North Carolina enacts: 6 7 PART I. HEALTH BENEFIT PLAN COVERAGE OF BIOMARKER TESTING 8 SECTION 1.1.(a) Article 3 of Chapter 58 of the General Statutes is amended by 9 adding a new section to read: 10 "§ 58-3-216. Coverage of biomarker testing. 11 (a) The following definitions apply in this section: 12 (1) Biomarker. – A characteristic that is objectively measured and evaluated as an 13 indicator of normal biological processes, pathogenic processes, or 14 pharmacologic responses to a specific therapeutic intervention, including 15 known gene-drug interactions for medication being considered for use or 16 already being administered. This term incudes gene mutations, characteristics 17 of genes, and protein expression. 18 (2) Biomarker testing. – The analysis of a patient's tissue, blood, or other 19 biospecimen for the presence of a biomarker. This term includes 20 single-analyte tests, multi-plex panel tests, protein expression, and whole 21 exome, whole genome, and whole transcriptome sequencing. 22 (3) Consensus statement. – A statement that is developed by an independent 23 multidisciplinary panel, aimed at specific clinical circumstances, and based 24 upon the best available evidence for the purpose of optimizing the outcomes 25 of clinical care. 26 (4) FDA. – The United States Food and Drug Administration. 27 (5) Reserved for future codification purposes. 28 (6) Independent multidisciplinary panel. – A multidisciplinary panel of experts 29 that utilizes a transparent methodology and reporting structure and that has a 30 conflict of interest policy. 31 (7) Independent organization or medical professional society. – An organization 32 or medical professional society that utilizes a transparent methodology and 33 reporting structure and that has a conflict of interest policy. 34 (8) Reserved for future codification purposes. 35 H.B. 567 Mar 27, 2025 HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025 Page 2 DRH40336-MRa-91 (9) Nationally recognized clinical practice guidelines. – Evidence-based clinical 1 practice guidelines developed by independent organizations or medical 2 professional societies that establish standards of care that are informed by a 3 systematic review of evidence and an assessment of the benefits and risks of 4 alternative care options and that include recommendations intended to 5 optimize patient care. 6 (b) A health benefit plan shall provide coverage for biomarker testing for the purposes of 7 diagnosis, treatment, appropriate care management, or ongoing monitoring of an insured's 8 disease or condition when the testing is supported by medical and scientific evidence. At a 9 minimum, any of the following shall be considered support for biomarker testing: 10 (1) Label indications for a test that has been FDA-approved or FDA-cleared. 11 (2) Indicated tests for an FDA-approved drug. 12 (3) Warnings and precautions on an FDA-approved drug label. 13 (4) National coverage determinations developed by the Centers for Medicare and 14 Medicaid Services. 15 (5) Local coverage determinations developed by a Medicare Administrative 16 Contractor. 17 (6) Nationally recognized clinical practice guidelines and consensus statements. 18 (c) Coverage required under this section shall be provided in a manner that limits 19 disruption in patient care, including the need for multiple biopsies or biospecimen samples." 20 SECTION 1.1.(b) G.S. 58-3-215, as amended by subsection (c) of this section, reads 21 as rewritten: 22 "§ 58-3-215. Genetic and biomarker information in health insurance. 23 (a) Definitions. – As used The following definitions apply in this section: 24 (1) Biomarker. – A characteristic that is objectively measured and evaluated as an 25 indicator of normal biological processes, pathogenic processes, or 26 pharmacologic responses to a specific therapeutic intervention, including 27 known gene-drug interactions for medication being considered for use or 28 already being administered. This term incudes gene mutations, characteristics 29 of genes, and protein expression. 30 (1a) "Genetic information" means information Genetic information. – Information 31 about genes, gene products, or inherited characteristics that may derive from 32 an individual or a family member. "Genetic information" does not include the 33 results of routine physical measurements, blood chemistries, blood counts, 34 urine analyses, tests for abuse of drugs, and tests for the presence of human 35 immunodeficiency virus. 36 … 37 (c) No insurer shall:shall do any of the following: 38 (1) Raise the premium or contribution rates paid by a group for a group health 39 benefit plan on the basis of genetic or biomarker information obtained about 40 an individual member of the group. 41 (2) Refuse to issue or deliver a health benefit plan because of genetic or biomarker 42 information obtained about any person to be insured by the health benefit plan. 43 (3) Charge a higher premium rate or charge for a health benefit plan because of 44 genetic or biomarker information obtained about any person to be insured by 45 the health benefit plan. 46 …." 47 SECTION 1.1.(c) G.S. 58-3-215(a)(2) and G.S. 58-3-215(a)(3) are repealed. 48 SECTION 1.1.(d) This section is effective October 1, 2025, and applies to insurance 49 contracts issued, renewed, or amended on or after that date. 50 SECTION 1.2.(a) G.S. 58-50-61 reads as rewritten: 51 General Assembly Of North Carolina Session 2025 DRH40336-MRa-91 Page 3 "§ 58-50-61. Utilization review. 1 (a) Definitions. – As used in this section, in G.S. 58-50-62, and in Part 4 of this Article, 2 the term: 3 … 4 (16a) Urgent healthcare service. – A healthcare service with respect to which the 5 application of the time periods for making a non-expedited utilization review 6 that, in the opinion of a medical doctor with knowledge of the covered person's 7 medical condition, could either (i) seriously jeopardize the life or health of the 8 covered person or the ability of the covered person to regain maximum 9 function or (ii) subject the covered person to severe pain that cannot be 10 adequately managed without the care or treatment that is the subject of the 11 utilization review. The term urgent healthcare service includes mental and 12 behavioral healthcare services. 13 … 14 (f) Time Lines for Prospective and Concurrent Reviews. Utilization Reviews Based 15 Upon Type of Healthcare Service. – As used in this subsection, the term "necessary information" 16 includes the results of any patient examination, clinical evaluation, or second opinion that may 17 be required. Prospective and concurrent determinations shall be communicated to The time line 18 for completion of a prospective or concurrent utilization review is as follows: 19 (1) Non-urgent healthcare services. – If an insurer requires a utilization review of 20 a healthcare service, then the insurer or its URO shall both render a utilization 21 review determination or noncertification and notify the covered person and the 22 covered person's provider within three business days after the insurer obtains 23 all necessary information about the admission, procedure, or health care 24 service. to make the utilization review determination or noncertification. 25 (2) Urgent healthcare services. – An insurer or its URO shall both render a 26 utilization review determination or noncertification concerning urgent 27 healthcare services and notify the covered person and the covered person's 28 provider of that utilization review determination or noncertification not later 29 than 24 hours after receiving all necessary information needed to complete the 30 review of the requested healthcare services. If the covered person's provider 31 or the insurer, or the entity conducting the review on behalf of the insurer, do 32 not both have access to the electronic health records of the covered person, 33 then this subdivision shall not apply and the utilization review will be subject 34 to the time line under subdivision (1) of this subsection. 35 (f1) Utilization Review Determination Notifications. – If an insurer or its URO certifies a 36 health care healthcare service, the insurer shall notify notification shall be sent to the covered 37 person's provider. For If an insurer or its URO issues a noncertification, the insurer shall notify 38 the covered person's provider and send then written or electronic confirmation of the 39 noncertification shall be sent to the covered person's provider and covered person. In person that 40 is in compliance with subsection (h) of this section. 41 (f2) Concurrent Review Liability. – For concurrent reviews, the insurer shall remain liable 42 for health care healthcare services until the covered person has been notified of the 43 noncertification. 44 … 45 (m) Disclosure of Utilization Review Requirements. – Information required to be 46 provided under this section shall be described in detail and in easily understandable language. 47 All of the following apply to an insurer's responsibility to disclose any utilization review 48 procedures: 49 (1) Coverage and member handbook. – In the certificate of coverage and member 50 handbook provided to covered persons, an insurer shall include a clear and 51 General Assembly Of North Carolina Session 2025 Page 4 DRH40336-MRa-91 comprehensive description of its utilization review procedures, including the 1 procedures for appealing noncertifications and a statement of the rights and 2 responsibilities of covered persons, including the voluntary nature of the 3 appeal process, with respect to those procedures. An insurer shall also include 4 in the certificate of coverage and the member handbook information about the 5 availability of assistance from the Department's Health Insurance Smart NC, 6 including the telephone number and address of the Program. program. 7 (2) Prospective materials. – An insurer shall include a summary of its utilization 8 review procedures in materials intended for prospective covered persons. 9 (3) Membership cards. – An insurer shall print on its membership cards a toll-free 10 telephone number to call for utilization review purposes. 11 (4) Website. – An insurer shall make any current utilization review requirements 12 and restrictions readily accessible on its website. 13 …." 14 SECTION 1.2.(b) This section becomes effective October 1, 2025, and applies to 15 insurance contracts issued, renewed, or amended on or after that date. 16 SECTION 1.3.(a) G.S. 135-48.51 reads as rewritten: 17 "§ 135-48.51. Coverage and operational mandates related to Chapter 58 of the General 18 Statutes. 19 The following provisions of Chapter 58 of the General Statutes apply to the State Health Plan: 20 (1) G.S. 58-3-191, Managed care reporting and disclosure requirements. 21 (1a) G.S. 58-3-216, Coverage of biomarker testing. 22 …." 23 SECTION 1.3.(b) In accordance with G.S. 135-48.24(b) and G.S. 135-48.30(a)(7) 24 which require the State Treasurer to implement procedures that are substantially similar to the 25 provisions of G.S. 58-50-61 for the North Carolina State Health Plan for Teachers and State 26 Employees (State Health Plan), the State Treasurer and the Executive Administrator of the State 27 Health Plan shall review all practices of the State Health Plan and all contracts with, and practices 28 of, any third party conducting any utilization review on behalf of the State Health Plan to ensure 29 compliance with Section 2 of this act no later than the start of the next plan year. 30 SECTION 1.3.(c) Effective July 1, 2025, there is appropriated from the General 31 Fund to the Department of State Treasurer the sum of one million dollars ($1,000,000) in 32 recurring funds for each year of the 2025-2027 fiscal biennium to be used to implement the 33 coverage required by this section for the State Health Plan. 34 SECTION 1.3.(d) Except as otherwise provided, this section becomes effective 35 October 1, 2025, and subsection (a) of this section applies as of the start of the next plan year 36 following the effective date. 37 38 PART II. MEDICAID COVERAGE OF BIOMARKER TESTING 39 SECTION 2.1. The Department of Health and Human Services, Division of Health 40 Benefits (DHB), shall ensure coverage for biomarker testing under the laboratory services 41 clinical coverage policies 1S-1 through 1S-13 to the same extent those services are required to 42 be covered by a health benefit plan under G.S. 58-3-216. DHB shall ensure its policies and 43 procedures for the prior authorization of any service covered under this section are in compliance 44 with Section 2.2 of this act. 45 SECTION 2.2.(a) For purposes of this section, the term "urgent prior authorization 46 request" is defined as a request for which a time line for decision longer than 72 hours could 47 seriously jeopardize the beneficiary's life, health, or ability to attain, maintain, or regain 48 maximum function, in the opinion of the beneficiary's healthcare provider. 49 General Assembly Of North Carolina Session 2025 DRH40336-MRa-91 Page 5 SECTION 2.2.(b) If prior authorization is required for any service covered under 1 Section 2.1 of this act, the time line for completion of a review of that prior authorization request 2 shall be as follows: 3 (1) For urgent prior authorization requests, DHB shall ensure that the prior 4 authorization request is either approved or denied and notice is given to the 5 beneficiary and beneficiary's healthcare provider within 24 hours after DHB 6 receives all information needed to complete a review of the request for prior 7 authorization. 8 (2) For non-urgent prior authorization requests, DHB shall ensure that the prior 9 authorization request is either approved or denied and notice is given to the 10 beneficiary and beneficiary's healthcare provider within 72 hours after DHB 11 receives all information needed to complete a review of the request for prior 12 authorization. 13 14 PART III. EFFECTIVE DATE 15 SECTION 3.1. Except as otherwise provided, this act is effective when it becomes 16 law. 17