2023 -- S 0870 ======== LC002496 ======== S T A T E O F R H O D E I S L A N D IN GENERAL ASSEMBLY JANUARY SESSION, A.D. 2023 ____________ A N A C T RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES Introduced By: Senators Ujifusa, Miller, Lawson, Valverde, Lauria, Kallman, Zurier, DiMario, Euer, and DiPalma Date Introduced: March 30, 2023 Referred To: Senate Health & Human Services It is enacted by the General Assembly as follows: SECTION 1. Chapter 27-18 of the General Laws entitled "Accident and Sickness Insurance 1 Policies" is hereby amended by adding thereto the following section: 2 27-18-33.3. Patient choice in dispensing of clinician-administered drugs. 3 (a) As used in this section: 4 (1) "Clinician-administered drug" means an outpatient prescription drug other than a 5 vaccine that: 6 (i) Cannot reasonably be self-administered by the patient to whom the drug is prescribed 7 or by an individual assisting the patient with the self-administration; and 8 (ii) Is typically administered: 9 (A) By a health care provider authorized under the laws of this state to administer the drug, 10 including when acting under a physician's delegation and supervision; and 11 (B) In a physician's office, hospital outpatient infusion center, or other clinical setting. 12 (b) A health benefit issuer or pharmacy benefit manager: 13 (1) Shall not refuse to authorize, approve, or pay a participating provider for providing 14 covered clinician-administered drugs and related services to covered persons; 15 (2) Shall not impose coverage or benefits limitations, or require an enrollee to pay an 16 additional fee, higher copay, higher coinsurance, second copay, second coinsurance, or other 17 penalty when obtaining clinician-administered drugs from a health care provider authorized under 18 the laws of this state to administer clinician-administered drugs, or a pharmacy; 19 LC002496 - Page 2 of 8 (3) Shall not interfere with the patient's right to choose to obtain a clinician-administered 1 drug from their provider or pharmacy of choice, including inducement, steering, or offering 2 financial or other incentives; 3 (4) Shall not require clinician-administered drugs to be dispensed by a pharmacy selected 4 by the health plan or create such a requirement through contract with a third party, including, but 5 not limited to, a pharmacy benefit manager; 6 (5) Shall not limit or exclude coverage for a clinician-administered drug when not 7 dispensed by a pharmacy selected by the health plan, if the drug would otherwise be covered; 8 (6) Shall not reimburse at a lesser amount clinician-administered drugs dispensed by a 9 pharmacy not selected by the health plan or create such an arrangement through contract with a 10 third party, including, but not limited to, a pharmacy benefit manager; 11 (7) Shall not condition, deny, restrict, refuse to authorize or approve, or reduce payment to 12 a participating provider for providing covered clinician-administered drugs and related services to 13 covered persons when all criteria for medical necessity are met, because the participating provider 14 obtains clinician-administered drugs from a pharmacy that is not a participating provider in the 15 health benefit issuer's network; 16 (8) Shall not require that an enrollee pay an additional fee, higher copay, higher 17 coinsurance, second copay, second coinsurance, or any other form of price increase for clinician-18 administered drugs when not dispensed by a pharmacy selected by the health plan or create such a 19 requirement through contract with a third party, including, but not limited to, a pharmacy benefit 20 manager; 21 (9) Shall not require a specialty pharmacy to dispense a clinician-administered medication 22 directly to a patient with the intention that the patient will transport the medication to a healthcare 23 provider for administration. 24 (c) A health benefit issuer may offer, but shall not require, either directly or through 25 contract with a third party, including, but not limited to, a pharmacy benefit manager: 26 (1) The use of a home infusion pharmacy to dispense clinician-administered drugs to 27 patients in their homes or; 28 (2) The use of an infusion site external to a patient's provider office or clinic. 29 SECTION 2. Chapter 27-19 of the General Laws entitled "Nonprofit Hospital Service 30 Corporations" is hereby amended by adding thereto the following section: 31 27-19-26.3. Patient choice in dispensing of clinician-administered drugs. 32 (a) As used in this section: 33 (1) "Clinician-administered drug" means an outpatient prescription drug other than a 34 LC002496 - Page 3 of 8 vaccine that: 1 (i) Cannot reasonably be self-administered by the patient to whom the drug is prescribed 2 or by an individual assisting the patient with the self-administration; and 3 (ii) Is typically administered: 4 (A) By a health care provider authorized under the laws of this state to administer the drug, 5 including when acting under a physician's delegation and supervision; and 6 (B) In a physician's office, hospital outpatient infusion center, or other clinical setting. 7 (b) A health benefit issuer or pharmacy benefit manager: 8 (1) Shall not refuse to authorize, approve, or pay a participating provider for providing 9 covered clinician-administered drugs and related services to covered persons; 10 (2) Shall not impose coverage or benefits limitations, or require an enrollee to pay an 11 additional fee, higher copay, higher coinsurance, second copay, second coinsurance, or other 12 penalty when obtaining clinician-administered drugs from a health care provider authorized under 13 the laws of this state to administer clinician-administered drugs, or a pharmacy; 14 (3) Shall not interfere with the patient's right to choose to obtain a clinician-administered 15 drug from their provider or pharmacy of choice, including inducement, steering, or offering 16 financial or other incentives; 17 (4) Shall not require clinician-administered drugs to be dispensed by a pharmacy selected 18 by the health plan or create such a requirement through contract with a third party, including, but 19 not limited to, a pharmacy benefit manager; 20 (5) Shall not limit or exclude coverage for a clinician-administered drug when not 21 dispensed by a pharmacy selected by the health plan, if the drug would otherwise be covered; 22 (6) Shall not reimburse at a lesser amount clinician-administered drugs dispensed by a 23 pharmacy not selected by the health plan or create such an arrangement through contract with a 24 third party, including, but not limited to, a pharmacy benefit manager; 25 (7) Shall not condition, deny, restrict, refuse to authorize or approve, or reduce payment to 26 a participating provider for providing covered clinician-administered drugs and related services to 27 covered persons when all criteria for medical necessity are met, because the participating provider 28 obtains clinician-administered drugs from a pharmacy that is not a participating provider in the 29 health benefit issuer's network; 30 (8) Shall not require that an enrollee pay an additional fee, higher copay, higher 31 coinsurance, second copay, second coinsurance, or any other form of price increase for clinician-32 administered drugs when not dispensed by a pharmacy selected by the health plan or create such a 33 requirement through contract with a third party, including, but not limited to, a pharmacy benefit 34 LC002496 - Page 4 of 8 manager; 1 (9) Shall not require a specialty pharmacy to dispense a clinician-administered medication 2 directly to a patient with the intention that the patient will transport the medication to a healthcare 3 provider for administration. 4 (c) A health benefit issuer may offer, but shall not require, either directly or through 5 contract with a third party, including, but not limited to, a pharmacy benefit manager: 6 (1) The use of a home infusion pharmacy to dispense clinician-administered drugs to 7 patients in their homes or; 8 (2) The use of an infusion site external to a patient's provider office or clinic. 9 SECTION 3. Chapter 27-20 of the General Laws entitled "Nonprofit Medical Service 10 Corporations" is hereby amended by adding thereto the following section: 11 27-20-23.3. Patient choice in dispensing of clinician-administered drugs. 12 (a) As used in this section: 13 (1) "Clinician-administered drug" means an outpatient prescription drug other than a 14 vaccine that: 15 (i) Cannot reasonably be self-administered by the patient to whom the drug is prescribed 16 or by an individual assisting the patient with the self-administration; and 17 (ii) Is typically administered: 18 (A) By a health care provider authorized under the laws of this state to administer the drug, 19 including when acting under a physician's delegation and supervision; and 20 (B) In a physician's office, hospital outpatient infusion center, or other clinical setting. 21 (b) A health benefit issuer or pharmacy benefit manager: 22 (1) Shall not refuse to authorize, approve, or pay a participating provider for providing 23 covered clinician-administered drugs and related services to covered persons; 24 (2) Shall not impose coverage or benefits limitations, or require an enrollee to pay an 25 additional fee, higher copay, higher coinsurance, second copay, second coinsurance, or other 26 penalty when obtaining clinician-administered drugs from a health care provider authorized under 27 the laws of this state to administer clinician-administered drugs, or a pharmacy; 28 (3) Shall not interfere with the patient's right to choose to obtain a clinician-administered 29 drug from their provider or pharmacy of choice, including inducement, steering, or offering 30 financial or other incentives; 31 (4) Shall not require clinician-administered drugs to be dispensed by a pharmacy selected 32 by the health plan or create such a requirement through contract with a third party, including, but 33 not limited to, a pharmacy benefit manager; 34 LC002496 - Page 5 of 8 (5) Shall not limit or exclude coverage for a clinician-administered drug when not 1 dispensed by a pharmacy selected by the health plan, if the drug would otherwise be covered; 2 (6) Shall not reimburse at a lesser amount clinician-administered drugs dispensed by a 3 pharmacy not selected by the health plan or create such an arrangement through contract with a 4 third party, including, but not limited to, a pharmacy benefit manager; 5 (7) Shall not condition, deny, restrict, refuse to authorize or approve, or reduce payment to 6 a participating provider for providing covered clinician-administered drugs and related services to 7 covered persons when all criteria for medical necessity are met, because the participating provider 8 obtains clinician-administered drugs from a pharmacy that is not a participating provider in the 9 health benefit issuer's network; 10 (8) Shall not require that an enrollee pay an additional fee, higher copay, higher 11 coinsurance, second copay, second coinsurance, or any other form of price increase for clinician-12 administered drugs when not dispensed by a pharmacy selected by the health plan or create such a 13 requirement through contract with a third party, including, but not limited to, a pharmacy benefit 14 manager; 15 (9) Shall not require a specialty pharmacy to dispense a clinician-administered medication 16 directly to a patient with the intention that the patient will transport the medication to a healthcare 17 provider for administration. 18 (c) A health benefit issuer may offer, but shall not require, either directly or through 19 contract with a third party, including, but not limited to, a pharmacy benefit manager: 20 (1) The use of a home infusion pharmacy to dispense clinician-administered drugs to 21 patients in their homes or; 22 (2) The use of an infusion site external to a patient's provider office or clinic. 23 SECTION 4. Chapter 27-41 of the General Laws entitled "Health Maintenance 24 Organizations" is hereby amended by adding thereto the following section: 25 27-41-38.3. Patient choice in dispensing of clinician-administered drugs. 26 (a) As used in this section: 27 (1) "Clinician-administered drug" means an outpatient prescription drug other than a 28 vaccine that: 29 (i) Cannot reasonably be self-administered by the patient to whom the drug is prescribed 30 or by an individual assisting the patient with the self-administration; and 31 (ii) Is typically administered: 32 (A) By a health care provider authorized under the laws of this state to administer the drug, 33 including when acting under a physician's delegation and supervision; and 34 LC002496 - Page 6 of 8 (B) In a physician's office, hospital outpatient infusion center, or other clinical setting. 1 (b) A health benefit issuer or pharmacy benefit manager: 2 (1) Shall not refuse to authorize, approve, or pay a participating provider for providing 3 covered clinician-administered drugs and related services to covered persons; 4 (2) Shall not impose coverage or benefits limitations, or require an enrollee to pay an 5 additional fee, higher copay, higher coinsurance, second copay, second coinsurance, or other 6 penalty when obtaining clinician-administered drugs from a health care provider authorized under 7 the laws of this state to administer clinician-administered drugs, or a pharmacy; 8 (3) Shall not interfere with the patient's right to choose to obtain a clinician-administered 9 drug from their provider or pharmacy of choice, including inducement, steering, or offering 10 financial or other incentives; 11 (4) Shall not require clinician-administered drugs to be dispensed by a pharmacy selected 12 by the health plan or create such a requirement through contract with a third party, including, but 13 not limited to, a pharmacy benefit manager; 14 (5) Shall not limit or exclude coverage for a clinician-administered drug when not 15 dispensed by a pharmacy selected by the health plan, if the drug would otherwise be covered; 16 (6) Shall not reimburse at a lesser amount clinician-administered drugs dispensed by a 17 pharmacy not selected by the health plan or create such an arrangement through contract with a 18 third party, including, but not limited to, a pharmacy benefit manager; 19 (7) Shall not condition, deny, restrict, refuse to authorize or approve, or reduce payment to 20 a participating provider for providing covered clinician-administered drugs and related services to 21 covered persons when all criteria for medical necessity are met, because the participating provider 22 obtains clinician-administered drugs from a pharmacy that is not a participating provider in the 23 health benefit issuer's network; 24 (8) Shall not require that an enrollee pay an additional fee, higher copay, higher 25 coinsurance, second copay, second coinsurance, or any other form of price increase for clinician-26 administered drugs when not dispensed by a pharmacy selected by the health plan or create such a 27 requirement through contract with a third party, including, but not limited to, a pharmacy benefit 28 manager; 29 (9) Shall not require a specialty pharmacy to dispense a clinician-administered medication 30 directly to a patient with the intention that the patient will transport the medication to a healthcare 31 provider for administration. 32 (c) A health benefit issuer may offer, but shall not require, either directly or through 33 contract with a third party, including, but not limited to, a pharmacy benefit manager: 34 LC002496 - Page 7 of 8 (1) The use of a home infusion pharmacy to dispense clinician-administered drugs to 1 patients in their homes or; 2 (2) The use of an infusion site external to a patient's provider office or clinic. 3 SECTION 5. This act shall take effect upon passage. 4 ======== LC002496 ======== LC002496 - Page 8 of 8 EXPLANATION BY THE LEGISLATIVE COUNCIL OF A N A C T RELATING TO INSURANCE -- ACCIDENT AND SICKNESS INSURANCE POLICIES *** This act would prevent healthcare entities from refusing to authorize, approve, or pay a 1 participating provider for providing covered clinician-administered drugs and related services to 2 covered persons. This act would also prevent healthcare entities from imposing coverage or benefits 3 limitations, or require an enrollee to pay an additional fee, higher copay, higher coinsurance, second 4 copay, second coinsurance, or other penalty when obtaining clinician-administered drugs from a 5 health care provider. It would prohibit interference with the patient's right to choose to obtain a 6 clinician-administered drug from their provider or pharmacy of choice. 7 This act would take effect upon passage. 8 ======== LC002496 ========