Bill Text: NY S08651 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to access to appropriate drugs at reasonable prices, formulary exceptions, standing prior authorizations and external appeals; to access to retail pharmacies, prescription synchronization, limits on patient drug costs, explanations of benefits and rebates; to prescription drug synchronization; to pharmacy benefit management; and to limits on copayments and drug substitutions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-05-10 - REFERRED TO INSURANCE [S08651 Detail]
Download: New_York-2017-S08651-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 8651 IN SENATE May 10, 2018 ___________ Introduced by Sen. ALCANTARA -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law and the public health law, in relation to access to appropriate drugs at reasonable prices, formulary exceptions, standing prior authorizations and external appeals; to amend the insurance law, in relation to access to retail pharmacies, prescription synchronization, limits on patient drug costs, explana- tions of benefits and rebates; to amend the social services law, in relation to prescription drug synchronization; to amend the public health law, in relation to pharmacy benefit management; and to amend the education law, in relation to limits on copayments and drug substitutions The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The insurance law is amended by adding a new section 4806 2 to read as follows: 3 § 4806. Access to appropriate drugs at reasonable prices; formulary 4 exceptions; standing prior authorization requirement. (a) An insurer 5 offering a prescription drug benefit with a formulary of approved or 6 preferred drugs shall establish a procedure by which it determines 7 whether a formulary drug provides appropriate therapeutic benefits to 8 meet the particular health care needs of an insured. If the insurer 9 determines that no formulary drug provides appropriate therapeutic bene- 10 fits to meet the particular health care needs of an insured, the insurer 11 shall cover the cost of an off-formulary drug for that insured, at no 12 additional cost to the insured beyond what the insured would otherwise 13 pay for a preferred brand name drug on the formulary. The determinations 14 whether a drug provides appropriate therapeutic benefits and whether a 15 non-formulary drug is necessary to meet the particular health care needs 16 of the insured are utilization review decisions and are reviewable in 17 accordance with article forty-nine of this chapter, including external 18 appeal. 19 (b) (1) For purposes of this section, "prior authorization require- 20 ment" means any practice implemented by an insurer in which coverage of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15227-01-8S. 8651 2 1 a prescription drug or device is dependent upon a covered person or a 2 health care practitioner obtaining approval from the insurer prior to 3 the service, device, or drug being performed, received, or prescribed, 4 as applicable. "Prior authorization" includes prospective or utilization 5 review procedures conducted prior to providing a drug or device. 6 (2) An insurer which requires prior authorizations for particular 7 prescription drugs shall have a procedure by which an insured who is 8 being prescribed such drug for a chronic condition may obtain a standing 9 prior authorization for a drug for the lesser of the following from the 10 date of the approval: (i) twelve months; or (ii) the last day of the 11 covered person's eligibility under the policy or plan. 12 (3) As a condition of such standing prior authorization, if according 13 to the available medical and scientific evidence the patient's chronic 14 condition is likely to change during the standing referral period, the 15 insurer or health plan may require the prescribing health care practi- 16 tioner to certify to the insurer, not more frequently than on a quarter- 17 ly basis, that the patient's chronic condition has not changed mate- 18 rially with respect to the need for the prescription. 19 (4) A twelve-month standing prior authorization provided under para- 20 graph two of this subsection does not apply to and is not required for 21 any of the following: 22 (i) medications that have a typical course of administration of less 23 than one year or for which available medical or scientific evidence does 24 not support a twelve-month period of use, in which case the standing 25 prior authorization period shall be the typical course of administration 26 or the period of use supported by the available medical or scientific 27 evidence; 28 (ii) medications that require an initial trial period to determine 29 effectiveness and tolerability, except that after such trial period a 30 one-year, or greater, prior authorization period will be given; and 31 (iii) medications that are schedule II controlled substance or a sche- 32 dule III controlled substance containing hydrocodone. 33 (5) For drugs used to treat acute conditions, insurers shall grant 34 standing prior authorizations for the period that the medical and scien- 35 tific evidence shows to be the anticipated period for the course of 36 treatment to have its intended effect. 37 (6) The standing prior authorizations provided for in this section are 38 no longer valid and automatically terminate if there are changes to 39 federal or state laws or federal regulatory guidance or compliance 40 information finding that the drug in question is no longer approved or 41 safe for the prescribed purpose. 42 (7) If an AB-rated generic drug that is therapeutically equivalent to 43 the drug subject to a standing prior authorization becomes available, 44 the insurer may substitute such newly released drug for the drug subject 45 to the standing prior authorization, provided advance notice is given to 46 the insured. 47 (8) The determination whether the drug is being prescribed to treat a 48 chronic condition and the period over which the course of treatment for 49 an acute condition is anticipated to have its intended effect are utili- 50 zation review decisions and are reviewable in accordance with article 51 forty-nine of this chapter, including external appeal. 52 (c) (1) If a formulary drug being prescribed for an insured is removed 53 by the insurer from its formulary for reasons other than a determination 54 that the approval for the use of that drug has been withdrawn by the 55 U.S. Food and Drug Administration, the insurer shall continue to cover 56 that drug for that insured for a transitional period to the end of theS. 8651 3 1 plan year at the same copayment as charged when the drug was on formu- 2 lary. Thereafter, the insured may seek continued coverage of the drug, 3 if appropriate, pursuant to the provisions of subsection (a) of this 4 section. 5 (2) If a formulary drug being prescribed for an insured is moved by 6 the insurer to a higher cost sharing tier in its formulary for reasons 7 other than release of an AB-rated generic drug, the insurer shall 8 continue to cover that drug for that insured for a transitional period 9 to the end of the plan year at the same copayment as charged when the 10 drug was on formulary. Thereafter, the insured may seek continued cover- 11 age of the drug, if appropriate, pursuant to the provisions of 12 subsection (a) of this section. 13 (3) If an insurer that provides prescription drug coverage enrolls a 14 new insured who is currently being prescribed a drug for a chronic 15 health condition, or as part of an ongoing course of treatment for an 16 acute condition, and that drug is not on the insurer's formulary, the 17 insurer shall cover that drug for that insured at no additional cost to 18 the insured beyond what the insured would otherwise pay for a preferred 19 brand name drug on the formulary, for a transitional period of ninety 20 (90) days from the effective date of enrollment. The insured must adhere 21 to the insurer's quality assurance requirements and provide to the 22 insurer necessary medical information related to the prescription and 23 otherwise adhere to the insurer's policies and procedures including, but 24 not limited to procedures regarding obtaining pre-authorization and a 25 treatment plan approved by the insurer. In no event shall this 26 subsection be construed to require an insurer to provide coverage for 27 benefits not otherwise covered. The transitional period does not 28 preclude the insured from seeking continued coverage of the drug, if 29 appropriate, pursuant to the provisions of subsection (a) of this 30 section. 31 § 2. The public health law is amended by adding a new section 4406-h 32 to read as follows: 33 § 4406-h. Access to appropriate drugs at reasonable prices; formulary 34 exceptions; standing prior authorization requirement. 1. A health main- 35 tenance organization offering a prescription drug benefit with a formu- 36 lary of approved or preferred drugs shall have a procedure by which it 37 determines whether a formulary drug provides appropriate therapeutic 38 benefits to meet the particular health care needs of an enrollee. If the 39 health maintenance organization determines that no formulary drug 40 provides appropriate therapeutic benefits to meet the particular health 41 care needs of an enrollee, the health maintenance organization shall 42 cover the cost of an off-formulary drug for that enrollee, at no addi- 43 tional cost to the enrollee beyond what the enrollee would otherwise pay 44 for a preferred brand name drug on the formulary. The determinations 45 whether a drug provides appropriate therapeutic benefits and whether a 46 non-formulary drug is necessary to meet the particular health care needs 47 of the insured are utilization review decisions and are reviewable in 48 accordance with article forty-nine of this chapter, including external 49 appeal. 50 2. (a) For purposes of this section, "prior authorization requirement" 51 means any practice implemented by a health maintenance organization in 52 which coverage of a prescription drug or device is dependent upon a 53 covered person or a health care practitioner obtaining approval from the 54 health maintenance organization prior to the service, device, or drug 55 being performed, received, or prescribed, as applicable. "Prior authori-S. 8651 4 1 zation" includes prospective or utilization review procedures conducted 2 prior to providing a drug or device. 3 (b) A health maintenance organization which requires prior authori- 4 zations for particular prescription drugs shall have a procedure by 5 which an enrollee who is being prescribed such drug for a chronic condi- 6 tion may obtain a standing prior authorization for a drug for the lesser 7 of the following from the date of the approval: (i) twelve months; (ii) 8 the last day of the enrollee's eligibility under the policy or plan. 9 (c) As a condition of such standing prior authorization, if according 10 to the available medical and scientific evidence the enrollee's chronic 11 condition is likely to change during the standing referral period, the 12 insurer or health plan may require the prescribing health care practi- 13 tioner to certify to the health maintenance organization, not more 14 frequently than on a quarterly basis, that the enrollee's chronic condi- 15 tion has not changed materially with respect to the need for the 16 prescription. 17 (d) A twelve-month standing prior authorization provided under subpar- 18 agraph (i) of paragraph (b) of this subdivision does not apply to and is 19 not required for any of the following: 20 (i) medications that have a typical course of administration of less 21 than one year or for which available medical or scientific evidence does 22 not support a twelve-month period of use, in which case the standing 23 prior authorization period shall be the typical course of administration 24 or the period of use supported by the available medical or scientific 25 evidence; 26 (ii) medications that require an initial trial period to determine 27 effectiveness and tolerability, except that after such trial period a 28 one-year, or greater, prior authorization period will be given; and 29 (iii) medications that are schedule II controlled substance or a sche- 30 dule III controlled substance containing hydrocodone. 31 (e) For drugs used to treat acute conditions, insurers shall grant 32 standing prior authorizations for the period that the medical and scien- 33 tific evidence shows to be the anticipated period for the course of 34 treatment to have its intended effect. 35 (f) The standing prior authorizations provided for in this section are 36 no longer valid and automatically terminate if there are changes to 37 federal or state laws or federal regulatory guidance or compliance 38 information finding that the drug in question is no longer approved or 39 safe for the prescribed purpose. 40 (g) If an AB-rated generic drug that is therapeutically equivalent to 41 the drug subject to a standing prior authorization becomes available, 42 the health maintenance organization may substitute such newly released 43 drug for the drug subject to the standing prior authorization, provided 44 advance notice is given to the enrollee. 45 (h) The determination whether the drug is being prescribed to treat a 46 chronic condition and the period over which the course of treatment for 47 an acute condition is anticipated to have its intended effect are utili- 48 zation review decisions and are reviewable in accordance with article 49 forty-nine of this chapter, including external appeal. 50 3. (a) If a formulary drug being prescribed for an enrollee is removed 51 by the health maintenance organization from its formulary for reasons 52 other than a determination that the approval for the use of that drug 53 has been withdrawn by the U.S. Food and Drug Administration, the health 54 maintenance organization shall continue to cover that drug for that 55 enrollee for a transitional period to the end of the plan year at the 56 same copayment as charged when the drug was on formulary. Thereafter,S. 8651 5 1 the enrollee may seek continued coverage of the drug, if appropriate, 2 pursuant to the provisions of subdivision one of this section. 3 (b) If a formulary drug being prescribed for an insured is moved by 4 the health maintenance organization to a higher cost sharing tier in its 5 formulary for reasons other than release of an AB-rated generic drug, 6 the health maintenance organization shall continue to cover that drug 7 for that enrollee for a transitional period to the end of the plan year 8 at the same copayment as charged when the drug was on formulary. There- 9 after, the enrollee may seek continued coverage of the drug, if appro- 10 priate, pursuant to the provisions of subdivision one of this section. 11 (c) If a health maintenance organization that provides prescription 12 drug coverage enrolls a new enrollee who is currently being prescribed a 13 drug for a chronic health condition, or as part of an ongoing course of 14 treatment for an acute condition, and that drug is not on the health 15 maintenance organization's formulary, the health maintenance organiza- 16 tion shall cover that drug for that enrollee at no additional cost to 17 the enrollee beyond what the enrollee would otherwise pay for a 18 preferred brand name drug on the formulary, for a transitional period of 19 ninety (90) days from the effective date of enrollment. The enrollee 20 must adhere to the health maintenance organization's quality assurance 21 requirements and provide to the health maintenance organization neces- 22 sary medical information related to the prescription and otherwise 23 adhere to the health maintenance organization's policies and procedures 24 including, but not limited to procedures regarding obtaining pre-author- 25 ization and a treatment plan approved by the health maintenance organ- 26 ization. In no event shall this subdivision be construed to require a 27 health maintenance organization to provide coverage for benefits not 28 otherwise covered. The transitional period does not preclude the enrol- 29 lee from seeking continued coverage of the drug, if appropriate, pursu- 30 ant to the provisions of subdivision one of this section. 31 § 3. Section 4903 of the insurance law is amended by adding a new 32 subsection (i) to read as follows: 33 (i) (1) Each health plan shall make available to all participating 34 health care providers on its web site or provider portal a listing of 35 its prior authorization requirements, including specific information or 36 documentation that a provider must submit in order for the prior author- 37 ization request to be considered complete. 38 (2) Each health plan shall make available on its web site information 39 about the policies, contracts, or agreements offered by it that clearly 40 identifies specific services, drugs, or devices to which a prior author- 41 ization requirement exists. 42 (3) Each health plan shall give thirty (30) days advance written 43 notice to participating providers of any changes in prior authorization 44 requirements. Each health plan shall also give thirty (30) days advance 45 written notice to plan participants of any changes in prior authori- 46 zation requirements with respect to any services, drugs or devices which 47 such participant is currently being prescribed or has been prescribed in 48 the preceding year. 49 § 4. Section 4903 of the public health law is amended by adding a new 50 subdivision 9 to read as follows: 51 9. (a) Each health plan shall make available to all participating 52 health care providers on its web site or provider portal a listing of 53 its prior authorization requirements, including specific information or 54 documentation that a provider must submit in order for the prior author- 55 ization request to be considered complete.S. 8651 6 1 (b) Each health plan shall make available on its web site information 2 about the policies, contracts, or agreements offered by it that clearly 3 identifies specific services, drugs, or devices to which a prior author- 4 ization requirement exists. 5 (c) Each health plan shall give thirty (30) days advance written 6 notice to participating providers of any changes in prior authorization 7 requirements. Each health plan shall also give thirty (30) days advance 8 written notice to plan participants of any changes in prior authori- 9 zation requirements with respect to any services, drugs or devices which 10 such participant is currently being prescribed or has been prescribed in 11 the preceding year. 12 § 5. Subsection (b) of section 4910 of the insurance law is amended by 13 adding a new paragraph 5 to read as follows: 14 (5) (A) The insured has had a drug prescription denied on the ground 15 that it is not on the health care plan's formulary, and that the health 16 care plan has a covered drug on the formulary which is effective to meet 17 the particular health care needs of an insured; and 18 (B) The insured's attending physician, who shall be a licensed physi- 19 cian or other health care provider qualified to prescribe drugs to treat 20 the insured for the health service sought, certifies that available 21 formulary drugs are not sufficiently effective to meet the insured's 22 health needs, or are otherwise contraindicated for the insured, and 23 recommends an off-formulary drug that will be effective to treat the 24 insured. 25 § 6. Subdivision 2 of section 4910 of the public health law is amended 26 by adding a new paragraph (e) to read as follows: 27 (e) (i) The enrollee has had a drug prescription denied on the ground 28 that it is not on the health maintenance organization's formulary, and 29 that the health maintenance organization has a covered drug on the 30 formulary which is effective to meet the particular health care needs of 31 an enrollee; and 32 (ii) The enrollee's attending physician, who shall be a licensed 33 physician or other health care provider qualified to prescribe drugs to 34 treat the insured for the health service sought, certifies that avail- 35 able formulary drugs are not sufficiently effective to meet the 36 enrollee's health needs, or are otherwise contraindicated for the enrol- 37 lee, and recommends an off-formulary drug that will be effective to 38 treat the enrollee. 39 § 7. Paragraph 4 of subsection (b) of section 4914 of the insurance 40 law is amended by adding a new subparagraph (E) to read as as follows: 41 (E) For external appeals requested pursuant to paragraph five of 42 subsection (b) of section four thousand nine hundred ten of this title 43 relating to an off-formulary drug denial, the external appeal agent 44 shall review the utilization review agent's final adverse determination 45 and, in accordance with the provisions of this title, shall make a 46 determination as to whether the non-formulary drug shall be covered by 47 the health plan; provided that such determination shall: 48 (i) be conducted only by one or a greater odd number of clinical peer 49 reviewers; 50 (ii) be accompanied by a written statement: 51 (a) that the off-formulary drug prescription shall be covered by the 52 health care plan either when the reviewer or a majority of the panel of 53 reviewers determines, upon review of the available medical and scientif- 54 ic evidence, the formulary drug deemed sufficient by the health plan 55 will not be as effective in addressing the insured's health problem for 56 which a drug has been prescribed as the off-formulary drug prescribed byS. 8651 7 1 the treating physician or otherwise be appropriate to meet the partic- 2 ular health care needs of the insured, which is more likely to provide a 3 beneficial clinical outcome; or 4 (b) upholding the health plan's denial of coverage. 5 § 8. Subdivision 2 of section 4914 of the public health law is amended 6 by adding a new paragraph (e) to read as follows: 7 (e) For external appeals requested pursuant to paragraph (e) of subdi- 8 vision two of section forty-nine hundred ten of this title relating to 9 an off-formulary drug denial, the external appeal agent shall review the 10 utilization review agent's final adverse determination and, in accord- 11 ance with the provisions of this title, shall make a determination as to 12 whether the non-formulary drug shall be covered by the health mainte- 13 nance organization; provided that such determination shall: 14 (i) be conducted only by one or a greater odd number of clinical peer 15 reviewers; 16 (ii) be accompanied by a written statement: 17 (1) that the off-formulary drug prescription shall be covered by the 18 health maintenance organization either when the reviewer or a majority 19 of the panel of reviewers determines, upon review of the available 20 medical and scientific evidence, the formulary drug deemed sufficient by 21 the health maintenance organization will not be as effective in address- 22 ing the enrollee's health problem for which a drug has been prescribed 23 as the off-formulary drug prescribed by the treating physician or other- 24 wise be appropriate to meet the particular health care needs of the 25 enrollee, which is more likely to provide a beneficial clinical outcome; 26 or 27 (2) upholding the health maintenance organization's denial of cover- 28 age. 29 § 9. The opening paragraph of paragraph 28 of subsection (i) of 30 section 3216 of the insurance law, as added by chapter 589 of the laws 31 of 2011, is designated subparagraph (A) and a new subparagraph (B) is 32 added to read as follows: 33 (B) Notwithstanding any other provision of this paragraph, if a pres- 34 criber, after consulting with the insurer regarding the appropriateness 35 of mail order delivery given: (i) the residence or delivery location of 36 the insured; (ii) the medical condition of the insured; (iii) the stor- 37 age requirements of the drug; (iv) the availability of the insured to 38 receive the prescription; or (v) the insured's ability to comprehend 39 pharmaceutical guidance and support over the telephone, determines that 40 a drug as prescribed on an individual basis is most appropriately filled 41 at a retail location, provided that an in-network retail pharmacy of the 42 patient's choosing agrees to the same reimbursement amount and is able 43 to fill the prescription, the prescriber's determination shall be final. 44 § 10. The opening paragraph of paragraph 18 of subsection (1) of 45 section 3221 of the insurance law is designated subparagraph (A) and a 46 new subparagraph (B) is added to read as follows: 47 (B) Notwithstanding any other provision of this paragraph, if a pres- 48 criber, after consulting with the insurer regarding the appropriateness 49 of mail order delivery given: (i) the residence or delivery location of 50 the insured; (ii) the medical condition of the insured; (iii) the stor- 51 age requirements of the drug; (iv) the availability of the insured to 52 receive the prescription; or (v) the insured's ability to comprehend 53 pharmaceutical guidance and support over the telephone, determines that 54 a drug as prescribed on an individual basis is most appropriately filled 55 at a retail location, provided that an in-network retail pharmacy of theS. 8651 8 1 patient's choosing agrees to the same reimbursement amount and is able 2 to fill the prescription, the prescriber's determination shall be final. 3 § 11. The opening paragraph of subsection (kk) of section 4303 of the 4 insurance law is designated paragraph 1 and a new paragraph 2 is added 5 to read as follows: 6 (2) Notwithstanding any other provision of this subsection, if a pres- 7 criber, after consulting with the insurer regarding the appropriateness 8 of mail order delivery given: (A) the residence or delivery location of 9 the covered person; (B) the medical condition of the covered person; (C) 10 the storage requirements of the drug; (D) the availability of the 11 covered person to receive the prescription; or (E) the covered person's 12 ability to comprehend pharmaceutical guidance and support over the tele- 13 phone, determines that a drug as prescribed on an individual basis is 14 most appropriately filled at a retail location, provided that an in-net- 15 work retail pharmacy of the patient's choosing agrees to the same 16 reimbursement amount and is able to fill the prescription, the 17 prescriber's determination shall be final. 18 § 12. The insurance law is amended by adding a new section 3224-d to 19 read as follows: 20 § 3224-d. Prescription synchronization. (a) Every individual or group 21 health insurance policy providing prescription drug coverage when appli- 22 cable to permit synchronization shall permit and apply a daily prorated 23 cost-sharing rate to prescriptions that are dispensed by a network phar- 24 macy for less than a thirty day supply, when it is agreed among the 25 covered individual, a health care practitioner, and a pharmacist that 26 synchronization of multiple prescriptions for the treatment of a chronic 27 illness is in the best interest of the covered individual for the 28 management or treatment of that chronic illness provided that all of the 29 following apply: 30 (1) the medications are covered by the policy or plan; 31 (2) the medications are used for treatment and management of chronic 32 conditions that are subject to refills; 33 (3) the medications are not a schedule II controlled substance or a 34 schedule III controlled substance containing hydrocodone; 35 (4) the medications meet all prior authorization criteria specific to 36 medications at the time of the synchronization request; 37 (5) the medications are of a formulation that can be effectively split 38 over required short fill periods to achieve synchronization; and 39 (6) the medications do not have quantity limits or dose optimization 40 criteria or requirements that would be violated in fulfilling synchroni- 41 zation. 42 (b) No individual or group health insurance policy providing 43 prescription drug coverage shall deny coverage for the dispensing of a 44 medication for partial fill when it is for purposes of synchronizing the 45 patient's medications. When applicable to permit synchronization, every 46 individual or group health insurance policy must allow a pharmacy to 47 override any denial codes indicating that a prescription is being 48 refilled too soon for the purposes of medication synchronization. 49 (c) Dispensing fees for partially filled or refilled prescriptions 50 shall be paid in full for each prescription dispensed, regardless of any 51 pro-rated copay for the beneficiary or fee paid for alignment services. 52 (d) Nothing in this section shall be deemed to require health care 53 practitioners and pharmacists to synchronize the refilling of multiple 54 prescriptions for a covered individual.S. 8651 9 1 (e) The requirements of this section shall apply only once for each 2 prescription drug subject to medication synchronization except when 3 either of the following occurs: 4 (1) the prescriber changes the dosage or frequency of administration 5 of the prescription drug subject to a medication synchronization; or 6 (2) the prescriber prescribes a different drug. 7 § 13. The insurance law is amended by adding a new section 4303-a to 8 read as follows: 9 § 4303-a. Prescription synchronization. (a) Every hospital service 10 corporation and health service corporation providing prescription drug 11 coverage when applicable to permit synchronization shall permit and 12 apply a daily prorated cost-sharing rate to prescriptions that are 13 dispensed by a network pharmacy for less than a thirty day supply, when 14 it is agreed among the covered individual, a health care practitioner, 15 and a pharmacist that synchronization of multiple prescriptions for the 16 treatment of a chronic illness is in the best interest of the covered 17 individual for the management or treatment of that chronic illness 18 provided that all of the following apply: 19 (1) the medications are covered by the policy or plan; 20 (2) the medications are used for treatment and management of chronic 21 conditions that are subject to refills; 22 (3) the medications are not a schedule II controlled substance or a 23 schedule III controlled substance containing hydrocodone; 24 (4) the medications meet all prior authorization criteria specific to 25 medications at the time of the synchronization request; 26 (5) the medications are of a formulation that can be effectively split 27 over required short fill periods to achieve synchronization; and 28 (6) the medications do not have quantity limits or dose optimization 29 criteria or requirements that would be violated in fulfilling synchroni- 30 zation. 31 (b) No hospital service corporation or health service corporation 32 providing prescription drug coverage shall deny coverage for the 33 dispensing of a medication for partial fill when it is for purposes of 34 synchronizing the patient's medications. When applicable to permit 35 synchronization, every hospital service corporation or health service 36 corporation providing prescription drug coverage must allow a pharmacy 37 to override any denial codes indicating that a prescription is being 38 refilled too soon for the purposes of medication synchronization. 39 (c) Dispensing fees for partially filled or refilled prescriptions 40 shall be paid in full for each prescription dispensed, regardless of any 41 pro-rated copay for the beneficiary or fee paid for alignment services. 42 (d) Nothing in this section shall be deemed to require health care 43 practitioners and pharmacists to synchronize the refilling of multiple 44 prescriptions for a covered individual. 45 (e) The requirements of this section shall apply only once for each 46 prescription drug subject to medication synchronization except when 47 either of the following occurs: 48 (1) The prescriber changes the dosage or frequency of administration 49 of the prescription drug subject to a medication synchronization; or 50 (2) The prescriber prescribes a different drug. 51 § 14. Subdivision 9 of section 367-a of the social services law is 52 amended by adding a new paragraph (i) to read as follows: 53 (i) (i) The department of health shall establish a program for 54 synchronization of medications when it is agreed among the recipient, a 55 provider and a pharmacist that synchronization of multiple prescriptions 56 for the treatment of a chronic illness is in the best interest of theS. 8651 10 1 patient for the management or treatment of a chronic illness provided 2 that the medications: 3 (A) are covered by the department of health pursuant to this title; 4 (B) are used for treatment and management of chronic conditions that 5 are subject to refills; 6 (C) are not a schedule II controlled substance or a schedule III 7 controlled substance containing hydrocodone; 8 (D) meet all prior authorization criteria specific to the medications 9 at the time of the synchronization request; 10 (E) are of a formulation that can be effectively split over required 11 short fill periods to achieve synchronization; and 12 (F) do not have quantity limits or dose optimization criteria or 13 requirements that would be violated in fulfilling synchronization. 14 (ii) The department of health shall not deny coverage for the dispens- 15 ing of a medication by a network pharmacy for a partial supply when it 16 is for the purpose of synchronizing the patient's medications. When 17 applicable to permit synchronization, the department of health shall 18 allow a pharmacy to override any denial codes indicating that a 19 prescription is being refilled too soon for the purposes of medication 20 synchronization. 21 (iii) To permit synchronization, the department of health shall apply 22 a prorated daily cost-sharing rate to any medication dispensed by a 23 network pharmacy pursuant to this section. 24 (iv) The dispensing fee paid to a network pharmacy contracted to 25 provide services pursuant to this section for a partial supply associ- 26 ated with a medication synchronization shall be paid in full and shall 27 not be prorated. 28 (v) The requirements of this paragraph applies only once for each 29 prescription drug subject to medication synchronization except when 30 either of the following occurs: 31 (A) the prescriber changes the dosage or frequency of administration 32 of the prescription drug subject to a medication synchronization; or 33 (B) the prescriber prescribes a different drug. 34 (vi) Nothing in this paragraph shall be deemed to require health care 35 practitioners and pharmacists to synchronize the refilling of multiple 36 prescriptions for a recipient. 37 § 15. Subdivision 4 of section 364-j of the social services law is 38 amended by adding a new paragraph (w) to read as follows: 39 (w) (i) The department of health or a managed care organization 40 contracted to provide services pursuant to this section shall establish 41 a program for synchronization of medications when it is agreed among the 42 recipient, a provider and a pharmacist that synchronization of multiple 43 prescriptions for the treatment of a chronic illness is in the best 44 interest of the patient for the management or treatment of a chronic 45 illness provided that the medications: 46 (A) are covered by Medicaid services or a managed care organization 47 contracted to provide services pursuant to this chapter; 48 (B) are used for treatment and management of chronic conditions that 49 are subject to refills; 50 (C) are not a schedule II controlled substance or a schedule III 51 controlled substance containing hydrocodone; 52 (D) meet all prior authorization criteria specific to the medications 53 at the time of the synchronization request; 54 (E) are of a formulation that can be effectively split over required 55 short fill periods to achieve synchronization; andS. 8651 11 1 (F) do not have quantity limits or dose optimization criteria or 2 requirements that would be violated in fulfilling synchronization. 3 (ii) The department of health or a managed care organization 4 contracted to provide services under this section shall not deny cover- 5 age for the dispensing of a medication by a network pharmacy for a 6 partial supply when it is for the purpose of synchronizing the patient's 7 medications. When applicable to permit synchronization, the department 8 of health or a managed care organization contracted to provide services 9 under this title shall allow a pharmacy to override any denial code 10 indicating that a prescription is being refilled too soon for the 11 purposes of medication synchronization. 12 (iii) To permit synchronization, the department of health or a managed 13 care organization contracted to provide services pursuant to this title 14 shall apply a prorated daily cost-sharing rate to any medication 15 dispensed by a network pharmacy pursuant to this section. 16 (iv) The dispensing fee paid to a network pharmacy contracted to 17 provide services pursuant to this section for a partial supply associ- 18 ated with a medication synchronization shall be paid in full and shall 19 not be prorated. 20 (v) The requirements of this paragraph applies only once for each 21 prescription drug subject to medication synchronization except when 22 either of the following occurs: 23 (A) the prescriber changes the dosage or frequency of administration 24 of the prescription drug subject to a medication synchronization; or 25 (B) the prescriber prescribes a different drug. 26 (vi) Nothing in this paragraph shall be deemed to require health care 27 practitioners and pharmacists to synchronize the refilling of multiple 28 prescriptions for a covered individual. 29 § 16. Section 280-a of the public health law is amended by adding two 30 new subdivisions 3 and 4 to read as follows: 31 3. No pharmacy benefit manager shall, with respect to contracts 32 between such pharmacy benefit manager and a pharmacy or, alternatively, 33 such pharmacy benefit manager and a pharmacy's contracting agent, such 34 as a pharmacy services administrative organization: 35 (a) prohibit or penalize a pharmacist or pharmacy from disclosing to 36 an individual purchasing a prescription medication information regard- 37 ing: 38 (i) the cost of the prescription medication to the individual; or 39 (ii) the availability of any therapeutically equivalent alternative 40 medications or alternative methods of purchasing the prescription medi- 41 cation, including but not limited to, paying a cash price; or 42 (b) charge or collect from an individual a copayment that exceeds the 43 total submitted charges by the pharmacy for which the pharmacy paid. If 44 an individual pays a copayment, the pharmacy shall retain the adjudi- 45 cated costs and the pharmacy benefit manager shall not redact or recoup 46 the adjudicated cost. 47 4. Any provision of a contract that violates the provisions of this 48 section shall be deemed to be void and unenforceable. 49 § 17. Subsection (h) of section 4325 of the insurance law, as added by 50 chapter 487 of the laws of 2010, is amended to read as follows: 51 (h) (i) No corporation or insurer organized or licensed under this 52 chapter which provides coverage for prescription drugs shall require, or 53 enter into a contract which permits, a copayment which exceeds the usual 54 and customary cost of such prescribed drug or which exceeds the total 55 price paid to the pharmacy for such prescribed drug after the insured 56 has met the annual deductible requirement.S. 8651 12 1 (ii) In determining any coinsurance amount required to be paid for a 2 prescription drug, no insurer or corporation organized under this chap- 3 ter shall base its computation on a price higher than the actual price 4 paid by the pharmacy for the drug, taking into account any rebates 5 specific to the drug. The department of financial services shall issue 6 regulations setting forth the method each insurer or corporation organ- 7 ized under this chapter must use to determine the actual price paid by 8 the pharmacy. 9 (iii) Each insurer or corporation licensed under this article which 10 offers prescription drug coverage must itself or through its pharmacy 11 benefit manager issue a written explanation of benefit form to its 12 enrollees with respect to each prescription filled, containing all cate- 13 gories of information required of explanation of benefits forms for 14 medical benefits. 15 § 18. Subdivision 6 of section 6810 of the education law is amended by 16 adding a new paragraph (b-1) to read as follows: 17 (b-1) The prescriber or pharmacist shall inform the patient whether he 18 or she has prescribed or substituted a different generic drug product 19 from the generic drug product the patient has previously received. 20 Notification required pursuant to this paragraph shall be provided both 21 written and orally, contemporaneously with the filling of the 22 prescription. 23 § 19. Section 6826-a of the education law is amended by adding a new 24 subdivision 3 to read as follows: 25 3. The copayment amount shall not exceed the total price paid to the 26 pharmacy for the prescribed drug, except in cases where the insured has 27 not met the annual deductible requirement. The copayment charged to a 28 consumer for a prescription drug shall not exceed the amount which would 29 be charged if the drug were purchased without insurance coverage. 30 § 20. Paragraph 1 of subsection (e) of section 3231 of the insurance 31 law is amended by adding a new subparagraph (C) to read as follows: 32 (C) an insurer shall annually certify to the department that, during 33 the prior benefit year, the insurer made available to enrollees at the 34 point of sale at least a majority (i.e., greater than fifty percent) of 35 the rebates. 36 (i) For purposes of this subparagraph, "rebate" means: 37 (1) negotiated price concessions including but not limited to base 38 rebates and reasonable estimates of any price protection rebates and 39 performance-based rebates that may accrue directly or indirectly to the 40 issuer during the coverage year from a manufacturer, dispensing pharma- 41 cy, or other party to the transaction; and 42 (2) reasonable estimates of any fees and other administrative costs 43 that are passed through to the issuer and serve to reduce the issuer's 44 prescription drug liabilities for the coverage year. 45 (ii) In providing the certification required under this section, an 46 issuer shall not publish or otherwise reveal information regarding the 47 actual amount of rebates the issuer received on a product-, manufactur- 48 er-, or pharmacy-specific basis. Such information is protected as a 49 trade secret, is not a public record as defined in the public officers 50 law and shall not be disclosed directly or indirectly. An insurer shall 51 impose the confidentiality protections of this section on any third 52 parties or vendors with which it contracts that may receive or have 53 access to rebate information. 54 § 21. Subsection (b) of section 3221 of the insurance law is amended 55 to read as follows:S. 8651 13 1 (b) (1) No such policy shall be delivered or issued for delivery in 2 this state unless a schedule of the premium rates pertaining to such 3 form shall have been filed with the superintendent. 4 (2) An insurer shall annually certify to the department that, during 5 the prior benefit year, the insurer made available to enrollees at the 6 point of sale at least a majority (i.e., greater than fifty percent) of 7 the rebates. 8 (A) For purposes of this paragraph, "rebate" means: 9 (i) Negotiated price concessions including but not limited to base 10 rebates and reasonable estimates of any price protection rebates and 11 performance-based rebates that may accrue directly or indirectly to the 12 issuer during the coverage year from a manufacturer, dispensing pharma- 13 cy, or other party to the transaction; and 14 (ii) Reasonable estimates of any fees and other administrative costs 15 that are passed through to the issuer and serve to reduce the issuer's 16 prescription drug liabilities for the coverage year. 17 (B) In providing the certification required under this section, an 18 issuer shall not publish or otherwise reveal information regarding the 19 actual amount of rebates the issuer received on a product-, manufactur- 20 er-, or pharmacy-specific basis. Such information is protected as a 21 trade secret, is not a public record as defined in the public officers 22 law and shall not be disclosed directly or indirectly. An insurer shall 23 impose the confidentiality protections of this section on any third 24 parties or vendors with which it contracts that may receive or have 25 access to rebate information. 26 § 22. Severability. If any item, clause, sentence, subparagraph, 27 subdivision or other part of this act, or the application thereof to any 28 person or circumstances shall be held to be invalid, such holding shall 29 not affect, impair or invalidate the remainder of this act but it shall 30 be confined in its operation to the item, clause, sentence, subpara- 31 graph, subdivision or other part of this act directly involved in such 32 holding, or to the person and circumstances therein involved. 33 § 23. This act shall take effect immediately and shall apply to insur- 34 ance policies issued, amended, or renewed on or after January 1, 2019; 35 provided, however, that the amendments to subdivision 9 of section 367-a 36 of the social services law made by section fourteen of this act shall 37 not affect the expiration of such subdivision pursuant to section 4 of 38 chapter 19 of the laws of 1998, as amended, and shall expire therewith; 39 and provided, further, that the amendments to section 364-j of the 40 social services law made by section fifteen of this act shall not affect 41 the repeal of such section and shall be deemed repealed therewith. 42 Effective immediately the addition, amendment or repeal of any rule or 43 regulation necessary for the implementation of this act on its effective 44 date are authorized to be made on or before such date.