Bill Text: VA SB98 | 2024 | Regular Session | Chaptered
Bill Title: Health insurance; if prior authorization request is approved for prescription drugs.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2024-04-02 - Governor: Acts of Assembly Chapter text (CHAP0338) [SB98 Detail]
Download: Virginia-2024-SB98-Chaptered.html
Be it enacted by the General Assembly of Virginia:
1. That §38.2-3407.15:2 of the Code of Virginia is amended and reenacted as follows:
§38.2-3407.15:2. Carrier contracts; required provisions regarding prior authorization.
A. As used in this section, unless the context requires a different meaning:
"Carrier" has the same meaning ascribed thereto in subsection A of §38.2-3407.15.
"Prior authorization" means the approval process used by a carrier before certain drug benefits may be provided.
"Provider contract" has the same meaning ascribed thereto in subsection A of §38.2-3407.15.
"Supplementation" means a request communicated by the carrier to the prescriber or his designee, for additional information, limited to items specifically requested on the applicable prior authorization request, necessary to approve or deny a prior authorization request.
B. Any provider contract between a carrier and a participating health care provider with prescriptive authority, or its contracting agent, shall contain specific provisions that:
1. Require the carrier to, in a method of its choosing, accept telephonic, facsimile, or electronic submission of prior authorization requests that are delivered from e-prescribing systems, electronic health record systems, and health information exchange platforms that utilize the National Council for Prescription Drug Programs' SCRIPT standards;
2. Require that the carrier communicate to the prescriber or his designee within 24 hours, including weekend hours, of submission of an urgent prior authorization request to the carrier, if submitted telephonically or in an alternate method directed by the carrier, that the request is approved, denied, or requires supplementation;
3. Require that the carrier communicate electronically, telephonically, or by facsimile to the prescriber or his designee, within two business days of submission of a fully completed prior authorization request, that the request is approved, denied, or requires supplementation;
4. Require that the carrier communicate electronically, telephonically, or by facsimile to the prescriber or his designee, within two business days of submission of a properly completed supplementation from the prescriber or his designee, that the request is approved or denied;
5. Require that if a prior authorization request is approved for prescription drugs and such prescription drugs have been scheduled, provided, or delivered to the patient consistent with the authorization, the carrier shall not revoke, limit, condition, modify, or restrict that authorization unless (i) there is evidence that the authorization was obtained based on fraud or misrepresentation; (ii) final actions by the U.S. Food and Drug Administration, other regulatory agencies, or the manufacturer remove the drug from the market, limit its use in a manner that affects the authorization, or communicate a patient safety issue that would affect the authorization alone or in combination with other authorizations; (iii) a combination of drugs prescribed would cause a drug interaction; or (iv) a generic or biosimilar is added to the prescription drug formulary. Nothing in this section shall require a carrier to cover any benefit not otherwise covered or cover a prescription drug if the enrollee is no longer covered by a health plan on the date the prescription drug was scheduled, provided, or delivered;
6. Require that if the prior authorization request is denied, the carrier shall communicate electronically, telephonically, or by facsimile to the prescriber or his designee, within the timeframes established by subdivision 3 or 4, as applicable, the reasons for the denial;
6. 7. Require that prior authorization approved
by another carrier be honored, upon the carrier's receipt from the prescriber
or his designee of a record demonstrating the previous carrier's prior
authorization approval or any written or electronic evidence of the previous
carrier's coverage of such drug, at least for the initial 30 90
days of a member's prescription drug benefit coverage under a new health plan,
subject to the provisions of the new carrier's evidence of coverage and any
exception listed in subdivision 5;
7. 8. Require that a tracking system be used by
the carrier for all prior authorization requests and that the identification
information be provided electronically, telephonically, or by facsimile to the
prescriber or his designee, upon the carrier's response to the prior
authorization request;
8. 9. Require that the carrier's prescription
drug formularies, all drug benefits subject to prior authorization by the
carrier, all of the carrier's prior authorization procedures, and all prior
authorization request forms accepted by the carrier be made available through
one central location on the carrier's website and that such information be
updated by the carrier within seven days of approved changes;
9. 10. Require a carrier to honor a prior
authorization issued by the carrier for a drug, other than an opioid,
regardless of changes in dosages of such drug, provided such drug is prescribed
consistent with U.S. Food and Drug Administration-labeled dosages;
10. 11. Require a carrier to honor a prior
authorization issued by the carrier for a drug regardless of whether the
covered person changes plans with the same carrier and the drug is a covered
benefit with the current health plan;
11. 12. Require a carrier, when requiring a
prescriber to provide supplemental information that is in the covered
individual's health record or electronic health record, to identify the
specific information required;
12. 13. Require that no prior authorization be
required for at least one drug prescribed for substance abuse
medication-assisted treatment, provided that (i) the drug is a covered benefit,
(ii) the prescription does not exceed the FDA-labeled dosages, and (iii) the
drug is prescribed consistent with the regulations of the Board of Medicine;
13. 14. Require that when any carrier has
previously approved prior authorization for any drug prescribed for the treatment
of a mental disorder listed in the most recent edition of the Diagnostic and
Statistical Manual of Mental Disorders published by the American Psychiatric
Association, no additional prior authorization shall be required by the
carrier, provided that (i) the drug is a covered benefit; (ii) the prescription
does not exceed the FDA-labeled dosages; (iii) the prescription has been
continuously issued for no fewer than three months; and (iv) the prescriber
performs an annual review of the patient to evaluate the drug's continued
efficacy, changes in the patient's health status, and potential
contraindications. Nothing in this subdivision shall prohibit a carrier from
requiring prior authorization for any drug that is not listed on its
prescription drug formulary at the time the initial prescription for the drug
is issued;
14. 15. Require a carrier to honor a prior
authorization issued by the carrier for a drug regardless of whether the drug
is removed from the carrier's prescription drug formulary after the initial
prescription for that drug is issued, provided that the drug and prescription
are consistent with the applicable provisions of subdivision 13 14;
15. 16. Require a carrier, beginning July 1,
2025, notwithstanding the provisions of subdivision 1 or any other provision of
this section, to establish and maintain an online process that (i) links
directly to all e-prescribing systems and electronic health record systems that
utilize the National Council for Prescription Drug Programs SCRIPT standard and
the National Council for Prescription Drug Programs Real Time Benefit Standard;
(ii) can accept electronic prior authorization requests from a provider; (iii)
can approve electronic prior authorization requests (a) for which no additional
information is needed by the carrier to process the prior authorization
request, (b) for which no clinical review is required, and (c) that meet the
carrier's criteria for approval; and (iv) links directly to real-time patient
out-of-pocket costs for the office visit, considering copayment and deductible,
and (v) otherwise meets the requirements of this section. No carrier shall (a)
impose a fee or charge on any person for accessing the online process as
required by this subdivision or (b) access, absent provider consent, provider
data via the online process other than for the enrollee. No later than July 1,
2024, a carrier shall provide contact information of any third-party vendor or
other entity the carrier will use to meet the requirements of this subdivision
or the requirements of §38.2-3407.15:7 to any provider that requests such
information. A carrier that posts such contact information on its website shall
be considered to have met this requirement; and
16. 17. Require a participating health care
provider, beginning July 1, 2025, to ensure that any e-prescribing system or
electronic health record system owned by or contracted for the provider to
maintain an enrollee's health record has the ability to access, at the point of
prescribing, the electronic prior authorization process established by a
carrier as required by subdivision 15 16 and the real-time
patient-specific benefit information, including out-of-pocket costs and more
affordable medication alternatives made available by a carrier pursuant to §
38.2-3407.15:7. A provider may request a waiver of compliance under this
subdivision for undue hardship for a period specified by the appropriate
regulatory authority with the Health and Human Resources Secretariat.
C. The Commission shall have no jurisdiction to adjudicate individual controversies arising out of this section.
D. This section shall apply with respect to any contract between a carrier and a participating health care provider, or its contracting agent, that is entered into, amended, extended, or renewed on or after January 1, 2016.
E. Notwithstanding any law to the contrary, the provisions of this section shall not apply to:
1. Coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. §1395 et seq. (Medicare), Title XIX of the Social Security Act, 42 U.S.C. §1396 et seq. (Medicaid), Title XXI of the Social Security Act, 42 U.S.C. §1397aa et seq. (CHIP), 5 U.S.C. §8901 et seq. (federal employees), or 10 U.S.C. §1071 et seq. (TRICARE);
2. Accident only, credit or disability insurance, long-term care insurance, TRICARE supplement, Medicare supplement, or workers' compensation coverages;
3. Any dental services plan or optometric services plan as defined in §38.2-4501; or
4. Any health maintenance organization that (i) contracts with one multispecialty group of physicians who are employed by and are shareholders of the multispecialty group, which multispecialty group of physicians may also contract with health care providers in the community; (ii) provides and arranges for the provision of physician services by such multispecialty group physicians or by such contracted health care providers in the community; and (iii) receives and processes at least 85 percent of prescription drug prior authorization requests in a manner that is interoperable with e-prescribing systems, electronic health records, and health information exchange platforms.
