First Regular Session 117th General Assembly (2011)


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    SENATE ENROLLED ACT No. 178



     AN ACT concerning insurance.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: ; (11)SE0178.1.1. -->
    SECTION 1. [EFFECTIVE JULY 1, 2011] (a) As used in this SECTION, "enrollee" has the meaning set forth in IC 27-13-1-12.
    (b) As used in this SECTION, "health maintenance organization" has the meaning set forth in IC 27-13-1-19. The term includes a pharmacy benefit manager.
    (c) As used in this SECTION, "insured" means an individual entitled to coverage under a policy of accident and sickness insurance.
    (d) As used in this SECTION, "insurer" means an insurer that issues a policy of accident and sickness insurance. The term includes a pharmacy benefit manager.
    (e) As used in this SECTION, "policy of accident and sickness insurance" has the meaning set forth in IC 27-8-5-1.
    (f) As used in this SECTION, "subscriber" has the meaning set forth in IC 27-13-1-32.
    (g) As used in this SECTION, "substitution" means a substitution of a treatment, including a drug, a device, or a therapy, for the treatment ordered by an insured's or enrollee's treating physician.
    (h) The health finance commission established by IC 2-5-23-3 shall, during the 2011 interim of the general assembly, study the following possible prohibitions on insurers and health maintenance

organizations related to outpatient benefits:
        (1) Requesting a substitution from an insured's or enrollee's treating physician.
        (2) Contacting an insured, enrollee, or subscriber concerning a substitution.
        (3) Requesting from an insured's or enrollee's treating physician a change in the quantity of a covered drug to be dispensed.

     (i) In studying the prohibitions described in subsection (h), the health finance commission shall consider the following:
        (1) The physician/patient relationship.
        (2) The time and administrative costs related to unsolicited requests and contacts from insurers.
        (3) Whether such requests and contacts:
            (A) are beneficial to the insured or enrollee; or
            (B) should be limited or prohibited.
    (j) This SECTION expires December 31, 2011.


SEA 178 _ Concur

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