Florida Senate - 2019                        COMMITTEE AMENDMENT
       Bill No. CS for SB 1180
       
       
       
       
       
       
                                Ì260342vÎ260342                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/08/2019           .                                
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       The Committee on Health Policy (Mayfield) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 627.42393, Florida Statutes, is created
    6  to read:
    7         627.42393Health insurance policies; changes to
    8  prescription drug formularies; requirements.—
    9         (1)At least 60 days before the effective date of any
   10  change to a prescription drug formulary during a policy year, an
   11  insurer issuing individual or group health insurance policies in
   12  this state shall:
   13         (a)Provide general notification of the change in the
   14  formulary to current and prospective insureds in a readily
   15  accessible format on the insurer’s website; and
   16         (b)Notify, electronically or by first-class mail, any
   17  insured currently receiving coverage for a prescription drug for
   18  which the formulary change modifies coverage and the insured’s
   19  treating physician, including information on the specific drugs
   20  involved and a statement that the submission of a notice of
   21  medical necessity by the insured’s treating physician to the
   22  insurer at least 30 days before the effective date of the
   23  formulary change will result in continuation of coverage at the
   24  existing level.
   25         (2)The notice provided by the treating physician to the
   26  insurer must include a completed one-page form in which the
   27  treating physician certifies to the insurer that coverage of the
   28  prescription drug for the insured is medically necessary. The
   29  treating physician shall submit the notice electronically or by
   30  first-class mail. The insurer may provide the treating physician
   31  with access to an electronic portal through which the treating
   32  physician may electronically file the notice. The commission
   33  shall prescribe a form by rule for the notice.
   34         (3)If the treating physician certifies to the insurer, in
   35  accordance with subsection (2), that the prescription drug is
   36  medically necessary for the insured, the insurer:
   37         (a)Must authorize coverage for the prescribed drug based
   38  solely on the treating physician’s certification that coverage
   39  is medically necessary; and
   40         (b)May not modify the coverage related to the covered drug
   41  by:
   42         1.Increasing the out-of-pocket costs for the covered drug;
   43         2.Moving the covered drug to a more restrictive tier; or
   44         3.Denying an insured coverage of the drug for which the
   45  insured has been previously approved for coverage by the
   46  insurer.
   47         (4)This section does not:
   48         (a) Prohibit the addition of prescription drugs to the list
   49  of drugs covered under the policy during the policy year.
   50         (b)Apply to a grandfathered health plan as defined in s.
   51  627.402 or to benefits specified in s. 627.6513(1)-(14).
   52         (c)Alter or amend s. 465.025, which provides conditions
   53  under which a pharmacist may substitute a generically equivalent
   54  drug product for a brand name drug product.
   55         (d)Alter or amend s. 465.0252, which provides conditions
   56  under which a pharmacist may dispense a substitute biological
   57  product for the prescribed biological product.
   58         (e) Apply to a Medicaid managed care plan under part IV of
   59  chapter 409.
   60         Section 2. Paragraph (e) of subsection (5) of section
   61  627.6699, Florida Statutes, is amended to read:
   62         627.6699 Employee Health Care Access Act.—
   63         (5) AVAILABILITY OF COVERAGE.—
   64         (e) All health benefit plans issued under this section must
   65  comply with the following conditions:
   66         1. For employers who have fewer than two employees, a late
   67  enrollee may be excluded from coverage for no longer than 24
   68  months if he or she was not covered by creditable coverage
   69  continually to a date not more than 63 days before the effective
   70  date of his or her new coverage.
   71         2. Any requirement used by a small employer carrier in
   72  determining whether to provide coverage to a small employer
   73  group, including requirements for minimum participation of
   74  eligible employees and minimum employer contributions, must be
   75  applied uniformly among all small employer groups having the
   76  same number of eligible employees applying for coverage or
   77  receiving coverage from the small employer carrier, except that
   78  a small employer carrier that participates in, administers, or
   79  issues health benefits pursuant to s. 381.0406 which do not
   80  include a preexisting condition exclusion may require as a
   81  condition of offering such benefits that the employer has had no
   82  health insurance coverage for its employees for a period of at
   83  least 6 months. A small employer carrier may vary application of
   84  minimum participation requirements and minimum employer
   85  contribution requirements only by the size of the small employer
   86  group.
   87         3. In applying minimum participation requirements with
   88  respect to a small employer, a small employer carrier shall not
   89  consider as an eligible employee employees or dependents who
   90  have qualifying existing coverage in an employer-based group
   91  insurance plan or an ERISA qualified self-insurance plan in
   92  determining whether the applicable percentage of participation
   93  is met. However, a small employer carrier may count eligible
   94  employees and dependents who have coverage under another health
   95  plan that is sponsored by that employer.
   96         4. A small employer carrier shall not increase any
   97  requirement for minimum employee participation or any
   98  requirement for minimum employer contribution applicable to a
   99  small employer at any time after the small employer has been
  100  accepted for coverage, unless the employer size has changed, in
  101  which case the small employer carrier may apply the requirements
  102  that are applicable to the new group size.
  103         5. If a small employer carrier offers coverage to a small
  104  employer, it must offer coverage to all the small employer’s
  105  eligible employees and their dependents. A small employer
  106  carrier may not offer coverage limited to certain persons in a
  107  group or to part of a group, except with respect to late
  108  enrollees.
  109         6. A small employer carrier may not modify any health
  110  benefit plan issued to a small employer with respect to a small
  111  employer or any eligible employee or dependent through riders,
  112  endorsements, or otherwise to restrict or exclude coverage for
  113  certain diseases or medical conditions otherwise covered by the
  114  health benefit plan.
  115         7. An initial enrollment period of at least 30 days must be
  116  provided. An annual 30-day open enrollment period must be
  117  offered to each small employer’s eligible employees and their
  118  dependents. A small employer carrier must provide special
  119  enrollment periods as required by s. 627.65615.
  120         8. A small employer carrier shall comply with s. 627.42393
  121  for any change to a prescription drug formulary.
  122         Section 3. Subsection (36) of section 641.31, Florida
  123  Statutes, is amended to read:
  124         641.31 Health maintenance contracts.—
  125         (36) Except as provided in paragraphs (a), (b), and (c), a
  126  health maintenance organization may increase the copayment for
  127  any benefit, or delete, amend, or limit any of the benefits to
  128  which a subscriber is entitled under the group contract only,
  129  upon written notice to the contract holder at least 45 days in
  130  advance of the time of coverage renewal. The health maintenance
  131  organization may amend the contract with the contract holder,
  132  with such amendment to be effective immediately at the time of
  133  coverage renewal. The written notice to the contract holder must
  134  shall specifically identify any deletions, amendments, or
  135  limitations to any of the benefits provided in the group
  136  contract during the current contract period which will be
  137  included in the group contract upon renewal. This subsection
  138  does not apply to any increases in benefits. The 45-day notice
  139  requirement does shall not apply if benefits are amended,
  140  deleted, or limited at the request of the contract holder.
  141         (a) At least 60 days before the effective date of any
  142  change to a prescription drug formulary during a contract year,
  143  the health maintenance organization shall:
  144         1.Provide general notification of the change in the
  145  formulary to current and prospective subscribers in a readily
  146  accessible format on the health maintenance organization’s
  147  website; and
  148         2.Notify, electronically or by first-class mail, any
  149  subscriber currently receiving coverage for a prescription drug
  150  for which the formulary change modifies coverage and the
  151  subscriber’s treating physician, including information on the
  152  specific drugs involved and a statement that the submission of a
  153  notice of medical necessity by the subscriber’s treating
  154  physician to the health maintenance organization at least 30
  155  days before the effective date of the formulary change will
  156  result in continuation of coverage at the existing level.
  157         (b)The notice provided by the treating physician to the
  158  insurer must include a completed one-page form in which the
  159  treating physician certifies to the health maintenance
  160  organization that coverage of the prescription drug for the
  161  subscriber is medically necessary. The treating physician shall
  162  submit the notice electronically or by first-class mail. The
  163  health maintenance organization may provide the treating
  164  physician with access to an electronic portal through which the
  165  treating physician may electronically file the notice. The
  166  commission shall prescribe a form by rule for the notice.
  167         (c)If the treating physician certifies to the health
  168  maintenance organization, in accordance with paragraph (b), that
  169  the prescription drug is medically necessary for the subscriber,
  170  the health maintenance organization:
  171         1.Must authorize coverage for the prescribed drug based
  172  solely on the treating physician’s certification that coverage
  173  is medically necessary; and
  174         2.May not modify the coverage related to the covered drug
  175  by:
  176         a.Increasing the out-of-pocket costs for the covered drug;
  177         b.Moving the covered drug to a more restrictive tier; or
  178         c.Denying a subscriber coverage of the drug for which the
  179  subscriber has been previously approved for coverage by the
  180  health maintenance organization.
  181         (d) Paragraphs (a), (b), and (c) do not:
  182         1. Prohibit the addition of prescription drugs to the list
  183  of drugs covered under the contract during the contract year.
  184         2. Apply to a grandfathered health plan as defined in s.
  185  627.402 or to benefits specified in s. 627.6513(1)-(14).
  186         3. Alter or amend s. 465.025, which provides conditions
  187  under which a pharmacist may substitute a generically equivalent
  188  drug product for a brand name drug product.
  189         4. Alter or amend s. 465.0252, which provides conditions
  190  under which a pharmacist may dispense a substitute biological
  191  product for the prescribed biological product.
  192         5. Apply to a Medicaid managed care plan under part IV of
  193  chapter 409.
  194         Section 4. The Legislature finds that this act fulfills an
  195  important state interest.
  196         Section 5. This act shall take effect January 1, 2020.
  197  
  198  ================= T I T L E  A M E N D M E N T ================
  199  And the title is amended as follows:
  200         Delete everything before the enacting clause
  201  and insert:
  202                        A bill to be entitled                      
  203         An act relating to prescription drug formulary
  204         consumer protection; creating s. 627.42393, F.S.;
  205         requiring insurers issuing individual or group health
  206         insurance policies to provide certain notices to
  207         current and prospective insureds within a certain
  208         timeframe before the effective date of any change to a
  209         prescription drug formulary during a policy year;
  210         specifying requirements for a notice of medical
  211         necessity that an insured’s treating physician may
  212         submit to the insurer within a certain timeframe;
  213         specifying means by which the notice is to be
  214         submitted; requiring the Financial Services Commission
  215         to adopt a certain rule; specifying a requirement and
  216         prohibited acts relating to coverage changes by an
  217         insurer if the treating physician provides certain
  218         certification; providing construction and
  219         applicability; amending s. 627.6699, F.S.; requiring
  220         small employer carriers to comply with certain
  221         requirements for any change to a prescription drug
  222         formulary under the health benefit plan; amending s.
  223         641.31, F.S.; requiring health maintenance
  224         organizations to provide certain notices to current
  225         and prospective subscribers within a certain timeframe
  226         before the effective date of any change to a
  227         prescription drug formulary during a contract year;
  228         specifying requirements for a notice of medical
  229         necessity that a subscriber’s treating physician may
  230         submit to the health maintenance organization within a
  231         certain timeframe; specifying means by which the
  232         notice is to be submitted; requiring the commission to
  233         adopt a certain rule; specifying a requirement and
  234         prohibited acts relating to coverage changes by a
  235         health maintenance organization if the treating
  236         physician provides certain certification; providing
  237         construction and applicability; providing a
  238         declaration of important state interest; providing an
  239         effective date.