Oklahoma 2024 Regular Session

Oklahoma House Bill HB3508 Compare Versions

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3328 ENGROSSED HOUSE
3429 BILL NO. 3508 By: Sneed of the House
3530
3631 and
3732
3833 McCortney of the Senate
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4340 An Act relating to the Employee Group Insurance
4441 Division; transferring the Employee Group Ins urance
4542 Division from the Office of Management and Enterprise
4643 Services to the Oklahoma Health Care Authority ;
4744 amending 36 O.S. 2021, Section 6802, which relates to
4845 definitions for the Oklahoma Telemedicine A ct;
4946 transferring the Employee Group Insur ance Division
5047 from the Office of Managemen t and Enterprise Services
5148 to the Oklahoma Health Care Authority; amending 63
5249 O.S. 2021, Section 2-309I, as amended by Section 1,
5350 Chapter 257, O.S.L. 2022 (63 O.S . Supp. 2023, Section
5451 2-309I), which relates to prescription r equirements
5552 for opioids and benzodiazepines ; transferring the
5653 Employee Group Insurance Division from the Office of
5754 Management and Enterprise Services to the Oklahoma
5855 Health Care Authority ; amending 74 O.S. 2021, Section
5956 1304.1, which relates to Okla homa Employees Insurance
6057 and Benefits Board; transferring the Emplo yee Group
6158 Insurance Division from the Office of Management and
6259 Enterprise Services to the Oklahoma Health Care
6360 Authority; amending 85A O.S. 2021, Secti on 50, which
6461 relates to employer required to provide prompt
6562 medical treatment and fee schedule; transferring the
6663 Employee Group Insurance Division from the Office of
6764 Management and Enterprise Services to the Oklahoma
6865 Health Care Authority ; providing for codification;
6966 providing an effective date; and declaring an
7067 emergency.
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7572 BE IT ENACTED BY THE PEOP LE OF THE STATE OF OKLAHOMA:
7673
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10399 SECTION 1. NEW LAW A new section of law to be codified
104100 in the Oklahoma Statutes as Sec tion 1304.2 of Title 74, unless there
105101 is created a duplication in numbering, reads as follows:
106102 Effective July 1, 2024 , the Employee Group Insurance Division of
107103 the Office of Management and Enterprise Services shal l be
108104 transferred to the Oklahoma Health Care Authority . All unexpended
109105 funds, property, records, p ersonnel, and any outstanding financial
110106 obligations or encumbrances of the Office of Management and
111107 Enterprise Services which relate to the Emplo yee Group Division
112108 Insurance Division are hereby transferred to the Oklahoma Health
113109 Care Authority.
114110 SECTION 2. AMENDATORY 36 O.S. 2021, Section 68 02, is
115111 amended to read as follows:
116112 Section 6802. As used in the Oklahoma Telemedicine Act:
117113 1. "Distant site" means a site at which a health care
118114 professional licensed to practice in this state is located while
119115 providing health care services by means of t elemedicine;
120116 2. a. "Health benefits plan" means any plan or arrangement
121117 that:
122118 (1) provides benefits for medical or surgical
123119 expenses incurred as a resu lt of a health
124120 condition, accident or illn ess, and
125121 (2) is offered by any insurance company, group
126122 hospital service corporation or health
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154149 maintenance organiza tion that delivers or issues
155150 for delivery an individual, gr oup, blanket or
156151 franchise insurance poli cy or insurance
157152 agreement, a group hospita l service contract or
158153 an evidence of coverage, or, to the ext ent
159154 permitted by the Employee Retirement Income
160155 Security Act of 1974, 29 U.S.C., Section 1001 et
161156 seq., by a multiple employer welfare arrangement
162157 as defined in Section 3 of the Employee
163158 Retirement Income Security Act of 1974, or any
164159 other analogous benefit arrangement, whether the
165160 payment is fixed or by indem nity,
166161 b. Health benefits plan shall not include:
167162 (1) a plan that provides coverage:
168163 (a) only for a specified disease or diseases or
169164 under an individual limited benefit policy,
170165 (b) only for accidental de ath or dismemberment,
171166 (c) only for dental or visi on care,
172167 (d) for a hospital confinement indemnity policy,
173168 (e) for disability income insurance or a
174169 combination of accident-only and disability
175170 income insurance, or
176171 (f) as a supplement to liability insurance,
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204198 (2) a Medicare supplemental policy as defined by
205199 Section 1882(g)(1) of the Social Security Act (42
206200 U.S.C., Section 1395ss),
207201 (3) workers' compensation insurance coverage,
208202 (4) medical payment insu rance issued as part of a
209203 motor vehicle insurance policy,
210204 (5) a long-term care policy including a nursing home
211205 fixed indemnity polic y, unless a determination is
212206 made that the policy provides benefit coverage so
213207 comprehensive that the policy meets the
214208 definition of a health benefits plan,
215209 (6) short-term health insurance issued on a
216210 nonrenewable basis with a duration of six (6)
217211 months or less, or
218212 (7) a plan offered by the Employ ees Group Insurance
219213 Division of the Office of Management and
220214 Enterprise Services Oklahoma Health Care
221215 Authority;
222216 3. "Health care professional " means a physician or other health
223217 care practitioner licensed, accredited or certified to perform
224218 specified health care services consistent with state law;
225219 4. "Insurer" means any entity providin g an accident and health
226220 insurance policy in this state inclu ding, but not limited to, a
227221 licensed insurance company, a not-for-profit hospital service and
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255248 medical indemnity corporation, a fraternal ben efit society, a
256249 multiple employer welfare arrangement o r any other entity subject to
257250 regulation by the Insurance Com missioner;
258251 5. "Originating site" means a site at which a patient is
259252 located at the time health care services are provided to him or her
260253 by means of telemedicine, which may include, but shall not be
261254 restricted to, a patient 's home, workplace or school;
262255 6. "Remote patient monitoring services" means the delivery of
263256 home health services using telecommunica tions technology to enhance
264257 the delivery of home health care including monitoring of clinical
265258 patient data such as weight, blood pressure, pulse, pulse oxim etry,
266259 blood glucose and other condition-specific data, medication
267260 adherence monitoring and interacti ve video conferencing with or
268261 without digital image upload;
269262 7. "Store and forward transfer " means the transmission of a
270263 patient's medical information eithe r to or from an originating site
271264 or to or from the health care professional at the distant site, but
272265 does not require the patient being pres ent nor must it be in real
273266 time; and
274267 8. "Telemedicine" or "telehealth" means technology-enabled
275268 health and care management and delivery systems that extend capacity
276269 and access, which includes:
277270 a. synchronous mechanisms, which may include live
278271 audiovisual interaction between a patient and a health
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306298 care professional or real-time provider-to-provider
307299 consultation through live interactive audiovisual
308300 means,
309301 b. asynchronous mechanisms, which include store and
310302 forward transfers, online exchange of health
311303 information between a patient and a health care
312304 professional and online exchange of health information
313305 between health care professionals, but shall not
314306 include the use of automated text messages or
315307 automated mobile applicat ions that serve as the sole
316308 interaction between a patient and a health care
317309 professional,
318310 c. remote patient monitoring, and
319311 d. other electronic means that s upport clinical health
320312 care, professional consultation, patient and
321313 professional health-related education, public health
322314 and health administration.
323315 SECTION 3. AMENDATORY 63 O.S. 2021, Section 2-309I, as
324316 amended by Section 1, Chapt er 257, O.S.L. 2022 (63 O.S. Supp. 2023,
325317 Section 2-309I), is amended to read as follows:
326318 Section 2-309I. A. A practitioner shall not issue an initial
327319 prescription for an opioid drug in a quanti ty exceeding a seven-day
328320 supply for treatment of acute pain . Any opioid prescription for
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356347 acute pain shall be for th e lowest effective dose of an immed iate-
357348 release drug.
358349 B. Prior to issuing an initial prescription for an opioid drug
359350 in a course of treatme nt for acute or chronic pain, a practitioner
360351 shall:
361352 1. Take and document the results of a thorough medical histor y,
362353 including the experience of the pa tient with nonopioid medication
363354 and nonpharmacological pain-management approaches and substance
364355 abuse history;
365356 2. Conduct, as appropriate, and document the results of a
366357 physical examination;
367358 3. Develop a treatment plan with particular attention focused
368359 on determining the cause of pain of the patient;
369360 4. Access relevant prescription monitoring information f rom the
370361 central repository pursuant to Section 2-309D of this title;
371362 5. Limit the supply of any opioid drug prescribed for acute
372363 pain to a duration of no more than seven (7) days as determined by
373364 the directed dosage and frequency of dosage; provided, howe ver, upon
374365 issuing an initial prescription for acute pain pu rsuant to this
375366 section, the practitioner may issue one (1) subsequent prescription
376367 for an opioid drug in a quantity not to exceed seven (7) da ys if:
377368 a. the subsequent prescription is due to a major surgical
378369 procedure or "confined to home" status as defined in
379370 42 U.S.C., Section 1395n(a),
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407397 b. the practitioner provides the subsequent prescription
408398 on the same day as the initial prescription,
409399 c. the practitioner provides written instructions on the
410400 subsequent prescription indicating the ea rliest date
411401 on which the prescription may be filled, otherwise
412402 known as a "do not fill until" date, and
413403 d. the subsequent prescription is dispensed no more than
414404 five (5) days after the "do not fill until" date
415405 indicated on the prescription;
416406 6. In the case of a patient under the age of eighteen (18)
417407 years, enter into a patient-provider agreement with a parent or
418408 guardian of the patient; and
419409 7. In the case of a patien t who is a pregnant woman, enter into
420410 a patient-provider agreement with the patient.
421411 C. No less than seven (7) days after issuing the initial
422412 prescription pursuant to subsection A of this section, the
423413 practitioner, after consultation with the patient, may issue a
424414 subsequent prescription for the drug to the patient in a quantity
425415 not to exceed seven (7) days, provided that:
426416 1. The subsequent prescription would not be deemed an initial
427417 prescription under this section;
428418 2. The practitioner determines the pres cription is necessary
429419 and appropriate to the treatm ent needs of the patient and documents
430420 the rationale for the issuance of the subsequent prescription; and
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458447 3. The practitioner determines that issuance of the subsequent
459448 prescription does not present an un due risk of abuse, addiction or
460449 diversion and documents that determination.
461450 D. Prior to issuing the initial prescription of an opioid drug
462451 in a course of treatment for acute or chronic pain and again prior
463452 to issuing the third prescription of the course o f treatment, a
464453 practitioner shall discuss with th e patient or the parent or
465454 guardian of the patient if the patient is under eighteen (18) years
466455 of age and is not an emancipated minor, the risks associated w ith
467456 the drugs being prescribed, including but not limited to:
468457 1. The risks of addiction and overd ose associated with opioid
469458 drugs and the dangers of taking opioid drugs with alcohol,
470459 benzodiazepines and other central nervous system depressants;
471460 2. The reasons why the prescription is necessary;
472461 3. Alternative treatments that may be available; and
473462 4. Risks associated with the use of the drugs being prescribed,
474463 specifically that opioids are highly addictive, even when tak en as
475464 prescribed, that there is a r isk of developing a physical or
476465 psychological dependence on the controlled dangerous substance, and
477466 that the risks of taking more opioids tha n prescribed or mixing
478467 sedatives, benzodiazepines or alcohol with opioids can re sult in
479468 fatal respiratory depressio n.
480469 The practitioner shall include a note in the me dical record of
481470 the patient that the patient or the parent or guardian of the
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509497 patient, as applicable, has discussed with the practitioner the
510498 risks of developing a physica l or psychological dependence on th e
511499 controlled dangerous substance and alternative t reatments that may
512500 be available. The applicable state licensing board of the
513501 practitioner shall develop and make available to practitioners
514502 guidelines for the discussion required pursuant to this subsectio n.
515503 E. At the time of the issuance of the third pr escription for an
516504 opioid drug, the practiti oner shall enter into a patient-provider
517505 agreement with the patient.
518506 F. When an opioid drug is continuously prescribed for thre e (3)
519507 months or more for chronic pa in, the practitioner shall:
520508 1. Review, at a minimum of every three (3) months, the course
521509 of treatment, any new information about the etiolo gy of the pain,
522510 and the progress of the patient toward treatment objectives and
523511 document the results of that review ;
524512 2. In the first year of the patient-provider agreement, assess
525513 the patient prior to every renewal to determine whether the patient
526514 is experiencing problems associated with an opioid use disorder as
527515 defined by the Ameri can Psychiatric Association and document the
528516 results of that assessment. Following one (1) year of compliance
529517 with the patient-provider agreement, the practitioner shall asses s
530518 the patient at a minimum of every six (6) months;
531519 3. Periodically make reason able efforts, unless clinically
532520 contraindicated, to either stop the use of the contro lled substance,
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560547 decrease the dosage, try other drugs or treatment modalities in an
561548 effort to reduce the potential for abuse or the development of an
562549 opioid use disorder as defined by the American Psychiatri c
563550 Association and document with specificity the ef forts undertaken;
564551 4. Review the central repository information in accordance with
565552 Section 2-309D of this title; and
566553 5. Monitor compliance with the patient-provider agreement and
567554 any recommendations that t he patient seek a referral.
568555 G. 1. Any prescription for acute pain pursuant to this section
569556 shall have the words "acute pain" notated on the face of the
570557 prescription by the practitioner.
571558 2. Any prescription for chronic pain pursuant to this section
572559 shall have the words "chronic pain" notated on the face of the
573560 prescription by the practitioner.
574561 H. This section shall not apply to a prescriptio n for a
575562 patient:
576563 1. Who has sickle cell disease;
577564 2. Who is in treatment for cancer or receiving aftercare cancer
578565 treatment;
579566 3. Who is receiving hospice care from a licensed hospice;
580567 4. Who is receiving palliative care in conjunction with a
581568 serious illness;
582569 5. Who is a resident of a long-term care facility; or
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610596 6. For any medications that are being prescribed for u se in the
611597 treatment of substance abuse or opioid d ependence.
612598 I. Every policy, contract or plan delive red, issued, executed
613599 or renewed in this state, or approved for issuance or renewal in
614600 this state by the Insurance Commissioner, and every contract
615601 purchased by the Employees Group Insurance Division of t he Office of
616602 Management and Enterprise Services Oklahoma Health Care Authority ,
617603 on or after November 1, 2018, that provides coverage for
618604 prescription drugs subject to a copayment, coinsurance or deductible
619605 shall charge a copayment, coinsurance or deductible for an initial
620606 prescription of an opioid drug prescri bed pursuant to this sect ion
621607 that is either:
622608 1. Proportional between the cost sharing for a thirty-day
623609 supply and the amount of drugs the patient was prescribed; or
624610 2. Equivalent to the cost sharing for a full thirty-day supply
625611 of the drug, provided that no additional cost shari ng may be charged
626612 for any additional prescriptions for the remainder of the thirty-day
627613 supply.
628614 J. Any practitioner authorized to prescribe an opioid drug
629615 shall adopt and maintain a written policy or policies that include
630616 execution of a written agreement t o engage in an informed consent
631617 process between the prescribing practitioner and qualifying opioid
632618 therapy patient. For the purposes of this section, "qualifying
633619 opioid therapy patient" means:
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661646 1. A patient requiring opioid trea tment for more than three ( 3)
662647 months;
663648 2. A patient who is prescribed benzodiazepines and opioids
664649 together for more than one twenty-four-hour period; or
665650 3. A patient who is prescribed a dos e of opioids that exceeds
666651 one hundred (100) morphine equivalent doses.
667652 K. Nothing in the Anti-Drug Diversion Act shall be construed to
668653 require a practitioner to limit or forcibly taper a patient on
669654 opioid therapy. The standard of care requires effective and
670655 individualized treatment for each patient as deemed appropr iate by
671656 the prescribing practi tioner without an administrative or codified
672657 limit on dose or quantity that is more restrictive than approved by
673658 the Food and Drug Administration (FDA).
674659 SECTION 4. AMENDATORY 74 O.S. 2021, Section 1304.1, is
675660 amended to read as follows:
676661 Section 1304.1 A. The State and Education Employees Group
677662 Insurance Board and the Oklahoma State Employees Benefits Council
678663 are hereby abolished. Wherever the State and Education Employees
679664 Group Insurance Board and the Oklahoma State Employees Benefits
680665 Council are referenced in la w, that reference shall be construed to
681666 mean the Oklahoma Employees Insurance and Benefit s Board.
682667 B. There is hereby created the Oklahoma Employees Insurance and
683668 Benefits Board.
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711695 C. The chair and vice-chair shall be elected by the Board
712696 members at the first meeting of the Board and shall preside over
713697 meetings of the Board and perform other du ties as may be required by
714698 the Board. Upon the resignation or expiration o f the term of the
715699 chair or vice-chair, the members shall elect a chair or vice -chair.
716700 The Board shall elect one of its members to serve as secretary.
717701 D. The Board shall consist of seven (7) members to be appointed
718702 as follows:
719703 1. The State Insurance Comm issioner, or designee;
720704 2. Four members shall be appointed by the Governor;
721705 3. One member shall be appointed by the Speaker of the Oklahoma
722706 House of Representatives; and
723707 4. One member shall be appointed by the President Pro Tempore
724708 of the Oklahoma State Senate.
725709 E. The appointed members shall:
726710 1. Have demonstrated professional experience in inve stment or
727711 funds management, public funds management, p ublic or private group
728712 health or pension fund management, or group health insuranc e
729713 management;
730714 2. Be licensed to practice law in this state and have
731715 demonstrated professional experience in commercial matters; or
732716 3. Be licensed by the Oklahoma Accountanc y Board to practice in
733717 this state as a public accountant or a certified public acc ountant.
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761744 In making appointments that conform to the requirements of this
762745 subsection, at least one but not more than thre e members shall be
763746 appointed each from paragraphs 2 an d 3 of this subsection by the
764747 combined appointing authorities.
765748 F. Each member of the Board shall serve a ter m of four (4)
766749 years from the date of appointment.
767750 G. Members of the Board shall be subject t o the following:
768751 1. The appointed members shall each receive compensation of
769752 Five Hundred Dollars ($500.00) per month. Appointed membe rs who
770753 fail to attend a reg ularly scheduled meeting of the Board shall not
771754 receive the related compensation;
772755 2. The appointed members shall be reimbursed for their
773756 expenses, according to the State Travel Reimburseme nt Act, as are
774757 incurred in the performan ce of their duties, which s hall be paid
775758 from the Health Insurance Reserve Fund;
776759 3. In the event an appointed member doe s not attend at least
777760 seventy-five percent (75%) of th e regularly scheduled meetings of
778761 the Board during a calendar year, the appointing authority may
779762 remove the member;
780763 4. A member may also be removed for any other cause as provided
781764 by law;
782765 5. No Board member shall be individually or personally liable
783766 for any action of the Board; and
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811793 6. Participation on the Board is contingent upon mai ntaining
812794 all necessary annual training as may be required through the Health
813795 Insurance Portability and Accountability Ac t of 1996, Medicare
814796 contracting requirements or other statutory or regulatory
815797 guidelines.
816798 H. The Board shall meet as often as necessary to conduct
817799 business but shall meet no less than four times a year, with an
818800 organizational meeting to be held prior to D ecember 1, 2012. The
819801 organizational meeting shall be called by the Insurance
820802 Commissioner. A majority of the members of the Board shal l
821803 constitute a quorum for t he transaction of business, and any
822804 official action of the Board must have a favorable vote b y a
823805 majority of the members of the Board present.
824806 I. Except as otherwise provided in this subse ction, no member
825807 of the Board shall be a lobbyist registered in thi s state as
826808 provided by law, or be employed directly or indirectly by any firm
827809 or health care provider under contract to the State and Education
828810 Employees Group Insurance Board, the Oklahoma State Employees
829811 Benefits Council, or th e Oklahoma Employees Insura nce and Benefits
830812 Board, or any benefit program under its jurisdiction, for any goods
831813 or services whatsoever. Any physician member of the Board sha ll not
832814 be subject to the provisions of thi s subsection.
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860841 J. Any vacancy occurring on the Board shall be fille d for the
861842 unexpired term of office in the same manner as provided for in
862843 subsection D of this section.
863844 K. The Board shall act in accordance with t he provisions of the
864845 Oklahoma Open Meeting Act, the Oklahoma Open Records Act and the
865846 Administrative Procedur es Act.
866847 L. The Administrative Director of the Courts shall designate
867848 grievance panel members as shall be necessary. The members of the
868849 grievance panel shall consist of two attorneys licen sed to practice
869850 law in this state and on e state licensed health car e professional or
870851 health care administrator who has at least three (3) years practical
871852 experience, has had or has admitting privileges to a hospita l in
872853 this state, has a working knowledge o f prescription medication, or
873854 has worked in an administrative capac ity at some point in their
874855 career. The state health care professional shall be appointed by
875856 the Governor. At the Governor's discretion, one or mo re qualified
876857 individuals may also be appoi nted as an alternate to serve on the
877858 grievance panel in the event t he Governor's primary appointee
878859 becomes unable to serve.
879860 M. The Office of Management and Ent erprise Services Oklahoma
880861 Health Care Authority shall have the following duties,
881862 responsibilities and authority with respec t to the administration of
882863 the flexible benefits plan authorized pursuan t to the State
883864 Employees Flexible Benefits Act:
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911891 1. To construe and interpret the plan, and decide all questions
912892 of eligibility in accordance wi th the Oklahoma State Employees
913893 Benefits Act and 26 U.S.C.A., Section 1 et seq.;
914894 2. To select those benefits wh ich shall be made availa ble to
915895 participants under the p lan, according to the Oklahoma State
916896 Employees Benefits Act, and other applicable laws an d rules;
917897 3. To prescribe procedures to be followed by participants in
918898 making elections and filing claims under the plan;
919899 4. Beginning with the plan year which begins on January 1,
920900 2013, to select and contract with one or more providers to offer a
921901 group TRICARE Supplement product to eligible em ployees who are
922902 eligible TRICARE benefic iaries. Any membership dues req uired to
923903 participate in a group TRICARE Supplement prod uct offered pursuant
924904 to this paragraph shall be paid by the employee. As used in this
925905 paragraph, "TRICARE" means the Department of Defense health care
926906 program for active duty and retired service membe rs and their
927907 families;
928908 5. To prepare and distribute in formation communicating and
929909 explaining the plan to participating employers and participan ts.
930910 Health Maintenance Organizations or other third-party insurance
931911 vendors may be directly or indirectly involv ed in the distribution
932912 of communicated information to p articipating state agency employers
933913 and state employee participants subject to the follow ing condition:
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961940 the Board shall verify a ll marketing and communications informat ion
962941 for factual accuracy prior t o distribution;
963942 6. To receive from participating emplo yers and participants
964943 such information as shall be necessary for the proper administratio n
965944 of the plan, and any of the benefits o ffered thereunder;
966945 7. To furnish the pa rticipating employers and partic ipants such
967946 annual reports with respect to the administ ration of the plan as are
968947 reasonable and appropriate;
969948 8. To keep reports of benefit elec tions, claims and
970949 disbursements for clai ms under the plan;
971950 9. To negotiate for best and final offer through com petitive
972951 negotiation with the assistance and through th e purchasing
973952 procedures adopted by the Office of Management and Enterprise
974953 Services Oklahoma Health Care Authority and contract with federally
975954 qualified health maintenance organizations under the provi sions of
976955 42 U.S.C., Section 300e et seq., or with Health Maintenance
977956 Organizations granted a certificate of authority by the Insura nce
978957 Commissioner pursuant to the Health Maintenance Reform Act of 2003
979958 for consideration by participants as an alternative to the health
980959 plans offered by the Oklahoma Employees Insurance and Benefits
981960 Board, and to transfer to the health maintenance organiz ations such
982961 funds as may be approved for a participant electing health
983962 maintenance organization alternative services. The Bo ard may also
984963 select and contract with a ve ndor to offer a point-of-service plan.
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1012990 An HMO may offer coverage through a point -of-service plan, subject
1013991 to the guidelines esta blished by the Board. However, if the Board
1014992 chooses to offer a point-of-service plan, then a vendor that offers
1015993 both an HMO plan and a point-of-service plan may choose to offer
1016994 only its point-of-service plan in lieu of offering its HMO plan.
1017995 The Board may, however, renegotiate rates with successful bidders
1018996 after contracts have been award ed if there is an extraordinary
1019997 circumstance. An extraordinary circumstance shall be limited to
1020998 insolvency of a participating heal th maintenance organization or
1021999 point-of-service plan, dissolution of a participating health
10221000 maintenance organization or point -of-service plan or withdrawal of
10231001 another participating health maintenance organization or point-of-
10241002 service plan at any time during the calendar year. Nothing in this
10251003 section of law shall be construed to permit eith er party to
10261004 unilaterally alter the terms of the contract;
10271005 10. To retain as confid ential information the initial Request
10281006 For Proposal offers as well as any subsequent bid offers made by the
10291007 health plans prior to final contract awards as a part of the best
10301008 and final offer negotiations process for the benefit plan;
10311009 11. To promulgate admi nistrative rules for the competitive
10321010 negotiation process;
10331011 12. To require vendors offerin g coverage to provide such
10341012 enrollment and claims data as is determined by the Board. The Board
10351013 shall be authorized to retain as confidential any proprietary
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10631040 information submitted in response to the Board's Request For
10641041 Proposal. Provided, however, that an y such information requested by
10651042 the Board from the vendors shall only be subject to t he
10661043 confidentiality provision of this par agraph if it is clearly
10671044 designated in the Request For Proposal as being protected under this
10681045 provision. All requested information lacking such a designation in
10691046 the Request For Proposal shall be subject to Section 24 A.1 et seq.
10701047 of Title 51 of the Oklahoma Statutes. From health maintenance
10711048 organizations, data provided shall include the current Health Plan
10721049 Employer Data and Information Set (HEDIS);
10731050 13. To authorize the purc hase of any insurance deemed necessary
10741051 for providing benefits under the plan includin g indemnity dental
10751052 plans, provided that th e only indemnity health plan selected by the
10761053 Board shall be the indemnity plan offered by the Board, and to
10771054 transfer to the Board such funds as may be approved for a
10781055 participant electing a benefit plan offered by t he Board. All
10791056 indemnity dental plans shal l meet or exceed the following
10801057 requirements:
10811058 a. they shall have a statewide provider netw ork,
10821059 b. they shall provide benefits whic h shall reimburse the
10831060 expense for the followi ng types of dental procedures:
10841061 (1) diagnostic,
10851062 (2) preventative,
10861063 (3) restorative,
10871064
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11141090 (4) endodontic,
11151091 (5) periodontic,
11161092 (6) prosthodontics,
11171093 (7) oral surgery,
11181094 (8) dental implants,
11191095 (9) dental prosthetics, and
11201096 (10) orthodontics, and
11211097 c. they shall provide an annual benefit of not less than
11221098 One Thousand Five Hundred Dollars ($1,500.00) for all
11231099 services other than orthodontic services, and a
11241100 lifetime benefit of not less than One Thous and Five
11251101 Hundred Dollars ($1,500.00) for orthodontic services;
11261102 14. To communicate de ferred compensation programs as provided
11271103 in Section 1701 of Title 74 of the Oklaho ma Statutes;
11281104 15. To assess and collect reasonable fees from contracted
11291105 health maintenance organizations and third-party insurance vendors
11301106 to offset the costs of administrati on;
11311107 16. To accept, modify or reject ele ctions under the plan in
11321108 accordance with the Oklahoma State Employees Benefits Act and 26
11331109 U.S.C.A., Section 1 et seq.;
11341110 17. To promulgate election and claim forms to be us ed by
11351111 participants;
11361112 18. To adopt rules requi ring payment for medical and dental
11371113 services and treatment rendered by duly licens ed hospitals,
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11651140 physicians and dentists. Unless the Board has otherwise contracted
11661141 with the out-of-state health care provider, the Board shall
11671142 reimburse for medical services a nd treatment rendered and charged by
11681143 an out-of-state health care provider at least at the same percentage
11691144 level as the network percentage level of the fee schedule
11701145 established by the Oklahoma Employees Insurance and Benefits Board
11711146 if the insured employee w as referred to the out-of-state health care
11721147 provider by a physician or it was an e mergency situation and the
11731148 out-of-state provider was the closest in proximity to the plac e of
11741149 residence of the employee which off ers the type of health care
11751150 services needed. For purposes of this paragraph, health care
11761151 providers shall include, but not be l imited to, physicians,
11771152 dentists, hospitals and special care facilities;
11781153 19. To enter into a contract with out-of-state providers in
11791154 connection with any PPO or hospital or me dical network plan which
11801155 shall include, but not be limited to, special care facili ties and
11811156 hospitals outside the borders of the State of Oklahoma. The
11821157 contract for out-of-state providers shall be identical to t he in-
11831158 state provider contracts. The Board ma y negotiate for discounts
11841159 from billed charges when the out-of-state provider is no t a network
11851160 provider and the member sought services in an emergency situation,
11861161 when the services were not otherwise available in the State of
11871162 Oklahoma or when the Administrat or appointed by the Board approved
11881163 the service as an exceptional circumstance;
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12161190 20. To create the establishment of a grievance procedure by
12171191 which a three-member grievance panel shall act as an appeals body
12181192 for complaints by insured employees regarding the allowance and
12191193 payment of claims, eligibi lity, and other matters. Except for
12201194 grievances settled to the satisfaction of both parties prior to a
12211195 hearing, any person who requ ests in writing a hearing before the
12221196 grievance panel shall receive a hearing before t he panel. The
12231197 grievance procedure provi ded by this paragraph shall be the
12241198 exclusive remedy available to insured employees having complaints
12251199 against the insurer. Such gri evance procedure shall be subject to
12261200 the Oklahoma Administrative Procedures Act, incl uding provisions
12271201 thereof for review of a gency decisions by the district court. Th e
12281202 grievance panel shall schedule a hearing regarding the allowance and
12291203 payment of claims, eligibility and other matters within s ixty (60)
12301204 days from the date the grievance pa nel receives a written request
12311205 for a hearing unless the panel orders a continuance for good cause
12321206 shown. Upon written request by the insured employee to the
12331207 grievance panel and received not less than ten (10) d ays before the
12341208 hearing date, the grievance pa nel shall cause a full stenographic
12351209 record of the proceedings to be made by a comp etent court reporter
12361210 at the insured employee's expense; and
12371211 21. To intercept monies owin g to plan participants from other
12381212 state agencies, when those participants in turn owe money to the
12391213 Office of Management and E nterprise Services Oklahoma Health Care
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12671240 Authority, and to ensure that the participants are afforded due
12681241 process of law.
12691242 N. Except for a breach of fiduciary o bligation, a Board member
12701243 shall not be individually or personally responsible for any action
12711244 of the Board.
12721245 O. The Board shall operate in an advisory capacity to the
12731246 Office of Management and Enterprise Services Oklahoma Health Care
12741247 Authority.
12751248 P. The members of the Board shall not accept gifts or
12761249 gratuities from an indiv idual organization with a value in excess of
12771250 Ten Dollars ($10.00) per year. The provisions o f this section shall
12781251 not be construed to prevent the members of the Board from atten ding
12791252 educational seminars, conferences, meeti ngs or similar functions.
12801253 SECTION 5. AMENDATORY 85A O.S. 2021, Section 50, is
12811254 amended to read as foll ows:
12821255 Section 50. A. The employer shall promptly provide an injured
12831256 employee with medical, surgical, hospital, optometric, podiatric,
12841257 chiropractic and nursing ser vices, along with any medicine,
12851258 crutches, ambulatory devices, artificial limbs, eyeglasses, c ontact
12861259 lenses, hearing aids, and other apparatus as may be reasonably
12871260 necessary in connection with the injury r eceived by the employee.
12881261 The employer shall have th e right to choose the treating physician
12891262 or chiropractor.
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13171289 B. If the employer fails or neglec ts to provide medical
13181290 treatment within five (5) days after actual knowledge is recei ved of
13191291 an injury, the injur ed employee may select a physician or
13201292 chiropractor to provide medical treatment at the expense of the
13211293 employer; provided, however, that the injur ed employee, or another
13221294 in the employee's behalf, may obtain emergency treatment at the
13231295 expense of the employer where such emergency treatment is not
13241296 provided by the employer.
13251297 C. Diagnostic tests shall not be repeated sooner than six (6)
13261298 months from the date of the test unless agreed to by the parties or
13271299 ordered by the Commission for goo d cause shown.
13281300 D. Unless recommended by the treating doctor or chiropractor at
13291301 the time claimant reaches maximum medical improvement or by an
13301302 independent medical examiner, continuing medical maintenance shall
13311303 not be awarded by the Commission. The employe r or insurance carrier
13321304 shall not be responsible for continuing medical maintena nce or pain
13331305 management treatment that is outside the parameters established by
13341306 the Physician Advisory Committee or ODG. The employer or insurance
13351307 carrier shall not be responsib le for continuing medical m aintenance
13361308 or pain management treatment not previous ly ordered by the
13371309 Commission or approved in advance by the employer or insurance
13381310 carrier.
13391311 E. An employee claiming or entitled to benefits under the
13401312 Administrative Workers' Compensation Act, shall, if ord ered by the
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13681339 Commission or requested by the employer or insurance carrier, submit
13691340 himself or herself for medical examination. If an employee refu ses
13701341 to submit himself or herself to examination, his or her right to
13711342 prosecute any proceeding under the Adminis trative Workers'
13721343 Compensation Act shall be suspended , and no compensation shall be
13731344 payable for the period of such refusal.
13741345 F. For compensable in juries resulting in the use of a medical
13751346 device, ongoing service for the medical device shall be provided in
13761347 situations including, but not limited to, medical devi ce battery
13771348 replacement, ongoing medication refills related to the medical
13781349 device, medical device repair, or medical device replacement.
13791350 G. The employer shall reimburse the empl oyee for the actual
13801351 mileage in excess of twenty (20) miles round trip to and from the
13811352 employee's home to the location of a medical service provider for
13821353 all reasonable and n ecessary treatment, for an evaluation of an
13831354 independent medical examiner and for any evaluation made at the
13841355 request of the employer or insurance carrier. The rate of
13851356 reimbursement for such travel expense shall be the official
13861357 reimbursement rate as establi shed by the State Travel Reimbursement
13871358 Act. In no event shall the reimbursement of travel for medical
13881359 treatment or evaluation exceed six hundred (600) miles round trip.
13891360 H. Fee Schedule.
13901361 1. The Commission shall conduct a review and update of the
13911362 Current Procedural Terminology (CPT) in the Fee Schedule every two
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14191389 (2) years pursuant to the provisions of paragraph 14 of this
14201390 subsection. The Fee Schedule shall establi sh the maximum rates that
14211391 medical providers shall be reimbursed for medical care provided to
14221392 injured employees including, but not limited to, charges by
14231393 physicians, chiropractor s, dentists, counselors, ho spitals,
14241394 ambulatory and outpatient facilities, clini cal laboratory services,
14251395 diagnostic testing services, and ambulance services, and charges for
14261396 durable medical equipment, prosthetics, orthotics, and supplies.
14271397 The most current Fee Schedule established by the Administrator of
14281398 the Workers' Compensation Court prior to February 1, 2014, shall
14291399 remain in effect, unless or until the Legislature approves the
14301400 Commission's proposed Fee Schedule.
14311401 2. Reimbursement for medical care shall be prescribed and
14321402 limited by the Fee Schedule. The director of the Employees Gro up
14331403 Insurance Division of the Office of Management and Enterprise
14341404 Services Oklahoma Health Care Authority shall provide the Commission
14351405 such information as may be rel evant for the development o f the Fee
14361406 Schedule. The Commission shall develop the Fee Schedul e in a manner
14371407 in which quality of medical care is assured and maintained for
14381408 injured employees. The Commission shall give due consideration to
14391409 additional requireme nts for physicians treating an injured worker
14401410 under the Administrative Workers ' Compensation Act, including, but
14411411 not limited to, communication with claims representatives, ca se
14421412 managers, attorneys, and representatives of employers, and the
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14701439 additional time required to complete forms for the Commission,
14711440 insurance carriers, and employers.
14721441 3. In making adjustments to the Fee Sched ule, the Commission
14731442 shall use, as a benchmark, the reimbursement rate for each Current
14741443 Procedural Terminology (CPT) code provided fo r in the fee schedule
14751444 published by the Centers for Medicare and Medicaid Services of the
14761445 U.S. Department of Health and Human Services for use in Oklahoma
14771446 (Medicare Fee Schedu le) on the effective date of this section,
14781447 workers' compensation fee schedules emp loyed by neighboring states ,
14791448 the latest edition of "Relative Values for Physicians " (RVP), usual,
14801449 customary and reasonable m edical payments to workers' compensation
14811450 health care providers in the same trade area for comparable
14821451 treatment of a person with simi lar injuries, and all other data the
14831452 Commission deems relevant. For services not valued by CMS, the
14841453 Commission shall establ ish values based on the usual, customary and
14851454 reasonable medical payments to health care providers in the same
14861455 trade area for compara ble treatment of a person w ith similar
14871456 injuries.
14881457 a. No reimbursement shall be allowed for an y magnetic
14891458 resonance imaging (MR I) unless the MRI is provided by
14901459 an entity that meets Medicare requirements for the
14911460 payment of MRI services or is accredited by the
14921461 American College of Radiolo gy, the Intersocietal
14931462 Accreditation Commission or the Joint Commi ssion on
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15211489 Accreditation of Health care Organizations. For all
15221490 other radiology proce dures, the reimbursement rate
15231491 shall be the lesser of the reimbursement rate allowe d
15241492 by the 2010 Oklahoma Fee Schedule and two hundred
15251493 seven percent (207%) of the Medicare Fee Schedule.
15261494 b. For reimbursement of medical services for Evaluation
15271495 and Management of injured employees as defined in the
15281496 Fee Schedule adopted by the Commission, the
15291497 reimbursement rate shall n ot be less than one hundred
15301498 fifty percent (150%) of the Medicare Fee Schedule.
15311499 c. Any entity providing durable medical equipment,
15321500 prosthetics, orthotics or supplies shall be accredited
15331501 by a CMS-approved accreditation organization . If a
15341502 physician provides durable medical equipment,
15351503 prosthetics, orthotics, prescription d rugs, or
15361504 supplies to a patient a ncillary to the patient's
15371505 visit, reimbursement sha ll be no more than ten percent
15381506 (10%) above cost.
15391507 d. The Commission shall develop a reasonable stop-loss
15401508 provision of the Fee Schedule to provide for adequate
15411509 reimbursement for treatment for major burns, sev ere
15421510 head and neurological injuries, multiple syste m
15431511 injuries, and other catastrophic injuries requiring
15441512 extended periods of intensive care. An employer or
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15721539 insurance carrier shall have the right to audit the
15731540 charges and question the reasonableness and nece ssity
15741541 of medical treatment contained in a bill for treatment
15751542 covered by the stop-loss provision.
15761543 4. The right to recover charges fo r every type of medical car e
15771544 for injuries arising out of and in the course of covered employ ment
15781545 as defined in the Administr ative Workers' Compensation Act shall lie
15791546 solely with the Commission. When a medical care provider has
15801547 brought a claim to the Commi ssion to obtain payment for services, a
15811548 party who prevails in full on the claim shall be ent itled to
15821549 reasonable attorney fee s.
15831550 5. Nothing in this section shall prevent an em ployer, insurance
15841551 carrier, group self-insurance association, or certified workplac e
15851552 medical plan from contrac ting with a provider of medical care for a
15861553 reimbursement rate tha t is greater than or less than l imits
15871554 established by the Fee Schedule.
15881555 6. A treating physician may not charge more than Four Hundred
15891556 Dollars ($400.00) per hour for preparation for or testimo ny at a
15901557 deposition or appearance before the Commission in connect ion with a
15911558 claim covered by the Administrative Workers' Compensation Act.
15921559 7. The Commission's review of medical and treatment charges
15931560 pursuant to this section shal l be conducted pursuant to the Fee
15941561 Schedule in existence at the time the medical care or tre atment was
15951562 provided. The judgme nt approving the medical and treatment charges
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16231589 pursuant to this section shall be enforceable by the Commission in
16241590 the same manner as provided in the Administra tive Workers'
16251591 Compensation Act for the enforcement of other compe nsation payments.
16261592 8. Charges for prescription drugs dispensed by a pharmacy shall
16271593 be limited to ninety percent (90%) of the average wholesale price of
16281594 the prescription, plus a dispensing fee of Five Dollars ($5.00) per
16291595 prescription. "Average wholesale pr ice" means the amount determined
16301596 from the latest publication designated by the Com mission.
16311597 Physicians shall prescribe and pharmacies shall dispense generic
16321598 equivalent drugs when available. If the National Drug Code, or
16331599 "NDC", for the drug product dispens ed is for a repackaged drug, the n
16341600 the maximum reimbursement shall be the lesser of the original
16351601 labeler's NDC and the lowest-cost therapeutic equivalent drug
16361602 product. Compounded medications shall be billed by the compounding
16371603 pharmacy at the ingredient lev el, with each ingredient identif ied
16381604 using the applicable NDC of the drug product, and the corresponding
16391605 quantity. Ingredients with no NDC area are not separately
16401606 reimbursable. Payment shall be based on a sum of the allowable fee
16411607 for each ingredient plus a dispensing fee of Five Dollars ($5.00)
16421608 per prescription.
16431609 9. When medical care i ncludes prescription drugs dispensed by a
16441610 physician or other medical care provider and the NDC for the drug
16451611 product dispensed is for a repackaged drug, then the maximum
16461612 reimbursement shall be the lesser of the original labeler's NDC and
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16741639 the lowest-cost therapeutic equivalent drug product. Payment shall
16751640 be based upon a sum of the allowable fee for each ingredient plus a
16761641 dispensing fee of Five Dollars ($5.00) per prescription. Compounded
16771642 medications shall be billed by the compounding pharmacy.
16781643 10. Implantables are paid in addition to procedural
16791644 reimbursement paid for medical or surgical services. A
16801645 manufacturer's invoice for the actual cost to a physician, hospital
16811646 or other entity of an implantable device s hall be adjusted by the
16821647 physician, hospital or oth er entity to reflect, at the time
16831648 implanted, all applicable discounts, rebates, co nsiderations and
16841649 product replacement programs and shall be provided to the payer by
16851650 the physician or hospital as a condition of payment for the
16861651 implantable device. If the ph ysician, or an entity in which the
16871652 physician has a financial interest other than a n ownership interest
16881653 of less than five percent (5%) in a publically traded company,
16891654 provides implantable devices, this relat ionship shall be disclosed
16901655 to patient, employer, i nsurance company, third-party commission,
16911656 certified workplace medical plan, case m anagers, and attorneys
16921657 representing claimant and defendant. If the physician, or an entity
16931658 in which the physician has a fin ancial interest other than an
16941659 ownership interest o f less than five percent (5%) in a publicly
16951660 traded company, buys and resells impla ntable devices to a hospita l
16961661 or another physician, the markup shall be limited to ten percen t
16971662 (10%) above cost.
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17251689 11. Payment for medical care as required by the Administrativ e
17261690 Workers' Compensation Act shall be due within forty-five (45) days
17271691 of the receipt by the employer or insura nce carrier of a complete
17281692 and accurate invoice, unless the employ er or insurance carrier has a
17291693 good-faith reason to request additional information about such
17301694 invoice. Thereafter, the Commission may assess a penalty up to
17311695 twenty-five percent (25%) for any amount due under the Fee Schedule
17321696 that remains unpaid on the find ing by the Commission that no go od-
17331697 faith reason existed for the delay in payment. If the Commission
17341698 finds a pattern of an employer or insurance carrier willfully and
17351699 knowingly delaying payme nts for medical care, the Commission may
17361700 assess a civil penalty o f not more than Five Thousand Do llars
17371701 ($5,000.00) per occurrence.
17381702 12. If an employee fails to appear for a scheduled appointment
17391703 with a physician or chiropractor, the employer or insurance c ompany
17401704 shall pay to the physician or chiropractor a reasonable ch arge, to
17411705 be determined by the Co mmission, for the missed appointment. In the
17421706 absence of a good-faith reason for missing the appointment, the
17431707 Commission shall order the employee to reimburse the employer or
17441708 insurance company for the charge.
17451709 13. Physicians or chiropractors providing trea tment under the
17461710 Administrative Workers ' Compensation Act shall disclose under
17471711 penalty of perjury to the Commission, on a form prescr ibed by the
17481712 Commission, any ownership or interest in any health care facility,
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17761739 business, or diagnostic center that is not th e physician's or
17771740 chiropractor's primary place of b usiness. The disclosure shall
17781741 include any employee leasing arrangement between th e physician or
17791742 chiropractor and any health care facility that is not the
17801743 physician's or chiropractor's primary place of busi ness. A
17811744 physician's or chiropractor's failure to disclose as required by
17821745 this section shall be grounds for the Commission to disqua lify the
17831746 physician or chiropractor from providing treatment under the
17841747 Administrative Workers ' Compensation Act.
17851748 14. a. Beginning on May 28, 2019, the Commission shall
17861749 conduct an evaluation of the Fee Schedule, which shall
17871750 include an update of the list of C urrent Procedural
17881751 Terminology (CPT) codes, a line item adjustment or
17891752 renewal of all rates, a nd amendment as needed to the
17901753 rules applicable to the Fee Schedule.
17911754 b. The Commission shall contract with an external
17921755 consultant with knowledge of workers' compensation fee
17931756 schedules to review regional and nationwide
17941757 comparisons of Oklahoma 's Fee Schedule rates and date
17951758 and market for medical services. The consultant shall
17961759 receive written and oral comment from employers,
17971760 workers' compensation medical service and ins urance
17981761 providers, self-insureds, group self-insurance
17991762 associations of this state and the pub lic. The
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18271789 consultant shall submi t a report of its findings and a
18281790 proposed amended Fee Schedule to the Commission.
18291791 c. The Commission shall adopt the proposed amended Fee
18301792 Schedule in whole or i n part and make any additional
18311793 updates or adjustments. The Commi ssion shall submit a
18321794 proposed updated and adjusted Fee Schedule to the
18331795 President Pro Tempore of the Senate, the Speaker of
18341796 the House of Representatives and the Gove rnor. The
18351797 proposed Fee Schedule shall become effective on July 1
18361798 following the legislative session, if approved by
18371799 Joint Resolution of the Legislature during the session
18381800 in which a proposed Fee Schedule is submitted.
18391801 d. Beginning on May 28, 2019, an exter nal evaluation
18401802 shall be conducted and a proposed amended Fee Schedule
18411803 shall be submitted to the Legislature for approval
18421804 during the 2020 legislative session. Thereafter, an
18431805 external evaluation shall be conducted and a proposed
18441806 amended Fee Schedule shall b e submitted to the
18451807 Legislature for approval every two (2) years.
18461808 I. Formulary. The Commiss ion by rule shall adopt a closed
18471809 formulary. Rules adopted by the Commission shall allow an appeals
18481810 process for claims in which a treating doctor determines and
18491811 documents that a drug not incl uded in the formulary is necessary to
18501812 treat an injured employee 's compensable injury. The Commis sion by
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18781839 rule shall require the use of generic phar maceutical medications and
18791840 clinically appropriate over-the-counter alternatives to prescription
18801841 medications unless otherwise specified by the prescribing doctor, in
18811842 accordance with applicable state law.
18821843 SECTION 6. This act shall become eff ective July 1, 2024.
18831844 SECTION 7. It being immediately necessary fo r the preservation
18841845 of the public peace, health or safety, an emergency is hereby
18851846 declared to exist, by reason whereof thi s act shall take effect and
18861847 be in full force from and after its passage and approval.
1887-COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
1888-April 9, 2024 - DO PASS
1848+Passed the House of Representatives the 13th day of March, 2024.
1849+
1850+
1851+
1852+
1853+ Presiding Officer of the House
1854+ of Representatives
1855+
1856+
1857+
1858+Passed the Senate the ___ day of __________, 2024.
1859+
1860+
1861+
1862+
1863+ Presiding Officer of the Senate
1864+
1865+