Bill Text: CA AB2352 | 2021-2022 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Prescription drug coverage.
Spectrum: Bipartisan Bill
Status: (Passed) 2022-09-27 - Chaptered by Secretary of State - Chapter 590, Statutes of 2022. [AB2352 Detail]
Download: California-2021-AB2352-Amended.html
Bill Title: Prescription drug coverage.
Spectrum: Bipartisan Bill
Status: (Passed) 2022-09-27 - Chaptered by Secretary of State - Chapter 590, Statutes of 2022. [AB2352 Detail]
Download: California-2021-AB2352-Amended.html
|
Amended
IN
Assembly
April 06, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 2352
| Introduced by Assembly Member Nazarian (Coauthor: Assembly Member Waldron) |
February 16, 2022 |
An act to add Section 1367.207 to the Health and Safety Code, and to add Section 10123.204 to the Insurance Code, relating to health care coverage.
LEGISLATIVE COUNSEL'S DIGEST
AB 2352, as amended, Nazarian.
Prescription drug coverage.
Existing law, the Knox-Keene Health Care Service Plan Act of 1975, provides for the licensure and regulation of health care service plans by the Department of Managed Health Care, and makes a willful violation of the act a crime. Existing law provides for the regulation of health insurers by the Department of Insurance. Existing law requires a health care service plan contract or health insurance policy that provides coverage for outpatient prescription drugs to cover medically necessary prescription drugs and subjects those policies to certain limitations on cost sharing and the placement of drugs on formularies. Existing law limits the maximum amount an enrollee or insured may be required to pay at the point of sale for a covered prescription drug to the lesser of the applicable cost-sharing amount or the retail price, and requires that payment to apply to the applicable
deductible.
This bill would require a health care service plan or health insurer that provides prescription drug benefits and maintains one or more drug formularies to furnish specified information about a prescription drug upon request by an enrollee or insured, or their health care prescribing provider. The bill would require the plan or insurer to respond in real time to that request and ensure the information is current no later than one business day after a change is made. The bill would prohibit a health care service plan or health insurer from, among other things, restricting a health care prescribing
provider from sharing the information furnished about the prescription drug or penalizing a provider for prescribing a lower cost drug. Because a willful violation of these provisions by a health care service plan would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1367.207 is added to the Health and Safety Code, to read:1367.207.
(a) A health care service plan that provides prescription drug benefits and maintains one or more drug formularies shall do all of the following:(1) Upon request of an enrollee or an enrollee’s health care prescribing provider, furnish all of the following information regarding a prescription drug to the enrollee or the enrollee’s health care provider:
(A) The enrollee’s eligibility for the prescription drug.
(B) A full formulary list of drugs that are covered under the enrollee’s health care service plan contract.
(C) Cost-sharing information for the drug and other formulary alternatives, including any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.
(D) Applicable utilization management requirements for the drug or other formulary alternatives.
(2) Respond in real time to a request made pursuant to paragraph (1) in the same format in which the request was made.
through a standard API.
(3) Allow the use of an interoperability element to provide the information required pursuant to paragraph (1) in the same format as the request. (1).
(4) Ensure that the information provided pursuant to paragraph (1) is current no later than one business day after a change is made and is provided in real time.
(5) Provide the information pursuant to paragraph (1) if the request is made using the drug’s unique billing code and National Drug Code.
(b) A health care service plan shall not do any of the following:
(1) Deny or delay a response to a request for the purpose of blocking the release of information pursuant to subdivision (a) based on how the information was requested. (a).
(2) Restrict, prohibit, or otherwise hinder a health care prescribing provider from communicating or sharing to
an enrollee any of the following:
(A) The information provided pursuant to subdivision (a).
(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under the enrollee’s health care service plan contract.
(C) Information about the cash price of the drug.
(3) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which includes charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, or instituting enrollee
consent requirements.
(4) Penalize a health care prescribing provider for disclosing the information provided pursuant to subdivision (a).
(5) Penalize a health care prescribing provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.
(c) For purposes of this section:
(1) “Cost-sharing information” means the actual out-of-pocket amount an enrollee would be required to pay a dispensing pharmacy or health care prescribing provider for a prescription drug under the terms of the enrollee’s health care service plan contract.
(2)“Health care provider” means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.
(3)
(2) “Interoperability element” means hardware, software, integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or services necessary to provide a response to an enrollee, enrollee or an enrollee’s health care provider, or a third party acting on behalf of a provider.
prescribing provider.
(3) “Prescribing provider” is a health care provider authorized to write a prescription to treat a medical condition for a health plan enrollee.
(4) “Standard API” means an application interface that is standardized for vendors to conform to in order to access the information.
(d) This bill shall not be construed to authorize further disclosure inconsistent with the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) (Public Law 104-191) and the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1 of the Civil Code).
SEC. 2.
Section 10123.204 is added to the Insurance Code, to read:10123.204.
(a) A health insurer that provides prescription drug benefits and maintains one or more drug formularies shall do all of the following:(1) Upon request of an insured or an insured’s health care prescribing provider, furnish all of the following information regarding a prescription drug to the insured or the insured’s health care provider:
(A) The insured’s eligibility for the prescription drug.
(B) A full formulary list of drugs that are covered under the insured’s health insurance policy.
(C) Cost-sharing information for the drug and other formulary
alternatives, including any variance in cost sharing based on the dispensing pharmacy, whether retail or mail order, or the health care provider.
(D) Applicable utilization management requirements for the drug or other formulary alternatives.
(2) Respond in real time to a request made pursuant to paragraph (1) in the same format in which the request was made. through a standard API.
(3) Allow the use of an interoperability element to provide the information required pursuant to paragraph (1) in the same format as the request.
(1).
(4) Ensure that the information provided pursuant to paragraph (1) is current no later than one business day after a change is made and is provided in real time.
(5) Provide the information pursuant to paragraph (1) if the request is made using the drug’s unique billing code and National Drug Code.
(b) A health insurer shall not do any of the following:
(1) Deny or delay a response to a request for the purpose of blocking the release of information pursuant to subdivision (a) based on how the information was requested.
(a).
(2) Restrict, prohibit, or otherwise hinder a health care prescribing provider from communicating or sharing to an enrollee any of the following:
(A) The information provided pursuant to subdivision (a).
(B) Additional information on any lower cost or clinically appropriate alternative drugs, whether or not they are covered under
the insured’s health insurance policy.
(C) Information about the cash price of the drug.
(3) Except as required by law, interfere with, prevent, or materially discourage access, exchange, or use of the information provided pursuant to subdivision (a), which includes charging fees for access to the information, not responding to a request at the time made if a response is reasonably possible, or instituting insured consent requirements.
(4) Penalize a health care prescribing
provider for disclosing the information provided pursuant to subdivision (a).
(5) Penalize a health care prescribing provider for prescribing, administering, or ordering a lower cost or clinically appropriate alternative drug.
(c) For purposes of this section:
(1) “Cost-sharing information” means the actual out-of-pocket amount an insured would be required to pay a dispensing pharmacy or health care
prescribing provider for a prescription drug under the terms of the insured’s health insurance policy.
(2)“Health care provider” means a person licensed pursuant to Division 2 (commencing with Section 500) of the Business and Professions Code.
(3)
(2) “Interoperability element” means hardware, software,
integrated technologies or related licenses, technical information, privileges, rights, intellectual property, upgrades, or
services necessary to provide a response to an insured, insured or an insured’s health care provider, or a third party acting on behalf of a provider. prescribing provider.
(3) “Prescribing provider” is a health care provider authorized to write a prescription to treat a medical condition for a health plan enrollee.
(4) “Standard API” means an application interface that is
standardized for vendors to conform to in order to access the information.
(d) This bill shall not be construed to authorize further disclosure inconsistent with the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA) (Public Law 104-191) and the Confidentiality of Medical Information Act (Part 2.6 (commencing with Section 56) of Division 1 of the Civil Code).
