senate Bill S2287

Signed by Governor Amended

Enacts "Hannah's law"; requires certain insurance policies to include coverage for the cost of enteral formulas

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
view actions

actions

  • 15 / Jan / 2013
    • REFERRED TO INSURANCE
  • 18 / Mar / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 23 / Apr / 2013
    • 1ST REPORT CAL.414
  • 24 / Apr / 2013
    • 2ND REPORT CAL.
  • 29 / Apr / 2013
    • ADVANCED TO THIRD READING
  • 01 / May / 2013
    • PASSED SENATE
  • 01 / May / 2013
    • DELIVERED TO ASSEMBLY
  • 01 / May / 2013
    • REFERRED TO INSURANCE
  • 10 / Jun / 2013
    • RECALLED FROM ASSEMBLY
  • 10 / Jun / 2013
    • RETURNED TO SENATE
  • 10 / Jun / 2013
    • VOTE RECONSIDERED - RESTORED TO THIRD READING
  • 10 / Jun / 2013
    • AMENDED ON THIRD READING (T) 2287A
  • 13 / Jun / 2013
    • REPASSED SENATE
  • 13 / Jun / 2013
    • RETURNED TO ASSEMBLY
  • 13 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 18 / Jun / 2013
    • SUBSTITUTED FOR A490A
  • 18 / Jun / 2013
    • ORDERED TO THIRD READING RULES CAL.290
  • 18 / Jun / 2013
    • PASSED ASSEMBLY
  • 18 / Jun / 2013
    • RETURNED TO SENATE
  • 09 / Oct / 2013
    • DELIVERED TO GOVERNOR
  • 21 / Oct / 2013
    • SIGNED CHAP.388

Summary

Enacts "Hannah's law"; requires that every health insurance policy or contract which provides coverage for prescription drugs include coverage for the cost of enteral formulas whether administered orally or via feeding tube.

do you support this bill?

Bill Details

Versions:
S2287
S2287A
Legislative Cycle:
2013-2014
Law Section:
Insurance Law
Laws Affected:
Amd ยงยง3216, 3221, 4303 & 4322, Ins L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S5034A
2009-2010: S628

Sponsor Memo

BILL NUMBER:S2287

TITLE OF BILL: An act to amend the insurance law, in relation to
requiring certain health insurance policies to include coverage for
the cost of enteral formulas for the treatment of eosinophilic
esophagitis and related eosinophilic disorders

PURPOSE: To update and modify existing laws requiring the coverage of
enteral formulas.

SUMMARY OF PROVISIONS: Section 1: The short title - Hannah's Law.

Sections 2: Through four amend Insurance Law sections 3216(i) (21),
3221(11) and 4303(y), respectively, to specify that the existing
requirements concerning coverage of enteral formulas under
prescription drug plans is also applicable to policies providing
medical, major medical or similar comprehensive-type coverage, whether
administered orally or via tube feeding, and applicable to
eosinophilic esophagitis and related eosiniphilic disorders. It also
removes the existing $2,500 annual cap applicable to these enteral
formulas.

Section 5: Makes a conforming amendment to Insurance Law section
4322(b) (25), applicable to standardized individual enrollee direct
payment contracts offered by health maintenance organizations.

Section 6: Is the effective date.

JUSTIFICATION: This legislation is necessitated due to a flaw in
existing Insurance Law regarding enteral formula coverage requirements
encountered by the family of Hannah Devane. Hannah is a six year old
girl who suffers from eosinophilic esophagitis, a potentially fatal
condition that makes it impossible for her to eat most foods.

Children with eosinophilic esophagitis and similar disorders can only
obtain nourishment from special, enteral formulas, which in some cases
may be ingested orally but in other circumstances must be administered
via a feeding tube. In the case of Hannah, the life sustaining formula
can be taken orally and comes with a cost of approximately $1,200 per
month, or $14,400 annually.

Hannah's medical insurance provider already provides coverage for the
cost of enteral formulas, but only under conditions that require tube
feeding. This company policy gives rise to the circumstance whereby
Hanna's parents must incur significant out-of-pocket costs for the
enteral formula needed to sustain her life, or choose to have the cost
of the formula Covered but delivered through a feeding tube.

The purpose of Hannah's Law is to rectify this anomaly and to ensure.
adequate coverage for those children with these rare diseases. It
should also be noted that, pursuant to a 2006 settlement with the
Attorney General, a different insurer was ordered to cease its denial
of an enteral formula claim on the ground that a specific enteral
formula was not tube fed.

LEGISLATIVE HISTORY: A.2188 of 2010.


FISCAL IMPLICATIONS: Miniscule cost to government health plans to
expand an already existing health benefit requirement.

EFFECTIVE DATE: First of January next succeeding enactment and
applicable to policies and contracts issued, renewed, modified,
altered or amended on or after such date.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2287

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 15, 2013
                               ___________

Introduced  by  Sen.  BALL  --  read twice and ordered printed, and when
  printed to be committed to the Committee on Insurance

AN ACT to amend the insurance law,  in  relation  to  requiring  certain
  health  insurance policies to include coverage for the cost of enteral
  formulas for the treatment of  eosinophilic  esophagitis  and  related
  eosinophilic disorders

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Short title.  This act shall be known and may be  cited  as
"Hannah's law".
  S  2.  Paragraph 21 of subsection (i) of section 3216 of the insurance
law, as added by chapter 177 of the laws of 1997, is amended to read  as
follows:
  (21) Every policy which provides coverage for prescription drugs shall
include  coverage for the cost of enteral formulas for home use, WHETHER
ADMINISTERED ORALLY OR VIA TUBE FEEDING, for which a physician or  other
licensed  health  care  provider  legally  authorized to prescribe under
title eight of the education law has issued a written order. Such  writ-
ten  order  shall  state  that  the enteral formula is clearly medically
necessary and has been proven effective as a disease-specific  treatment
regimen  for  those  individuals  who are or will become malnourished or
suffer from disorders, which if left untreated, cause  chronic  physical
disability,  mental  retardation  or  death. Specific diseases for which
enteral formulas have been proven effective shall include, but  are  not
limited to, inherited diseases of amino acid or organic acid metabolism;
Crohn's  Disease;  EOSINOPHILIC  ESOPHAGITIS  AND  RELATED  EOSINOPHILIC
DISORDERS; gastroesophageal reflux with failure to thrive; disorders  of
gastrointestinal motility such as chronic intestinal pseudo-obstruction;
and  multiple,  severe food allergies which if left untreated will cause
malnourishment,  chronic  physical  disability,  mental  retardation  or
death.  Enteral  formulas  which are medically necessary and taken under

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05057-01-3

S. 2287                             2

written order from a physician for the treatment  of  specific  diseases
shall  be  distinguished  from nutritional supplements taken electively.
Coverage for certain inherited diseases of amino acid and  organic  acid
metabolism  shall  include  modified  solid  food  products that are low
protein or which contain modified protein which are medically necessary,
and such coverage for such modified solid food products for any calendar
year or for any continuous period of twelve months for any insured indi-
vidual shall not exceed two thousand five hundred dollars.
  S 3. Paragraph 11 of subsection (k) of section 3221 of  the  insurance
law,  as added by chapter 177 of the laws of 1997, is amended to read as
follows:
  (11) Every policy which provides coverage for prescription drugs shall
include coverage for the cost of enteral formulas for home use,  WHETHER
ADMINISTERED  ORALLY OR VIA TUBE FEEDING, for which a physician or other
licensed health care provider  legally  authorized  to  prescribe  under
title  eight of the education law has issued a written order. Such writ-
ten order shall state that the  enteral  formula  is  clearly  medically
necessary  and has been proven effective as a disease-specific treatment
regimen for those individuals who are or  will  become  malnourished  or
suffer  from  disorders, which if left untreated, cause chronic physical
disability, mental retardation or death.  Specific  diseases  for  which
enteral  formulas  have been proven effective shall include, but are not
limited to, inherited diseases of amino-acid or organic acid metabolism;
Crohn's  Disease;  EOSINOPHILIC  ESOPHAGITIS  AND  RELATED  EOSINOPHILIC
DISORDERS;  gastroesophageal reflux with failure to thrive; disorders of
gastrointestinal motility such as chronic intestinal pseudo-obstruction;
and multiple, severe food allergies which if left untreated  will  cause
malnourishment,  chronic  physical  disability,  mental  retardation  or
death. Enteral formulas which are medically necessary  and  taken  under
written  order  from  a physician for the treatment of specific diseases
shall be distinguished from nutritional  supplements  taken  electively.
Coverage  for  certain inherited diseases of amino acid and organic acid
metabolism shall include modified  solid  food  products  that  are  low
protein or which contain modified protein which are medically necessary,
and such coverage for such modified solid food products for any calendar
year or for any continuous period of twelve months for any insured indi-
vidual shall not exceed two thousand five hundred dollars.
  S  4. Subsection (y) of section 4303 of the insurance law, as added by
chapter 177 of the laws of 1997, is amended to read as follows:
  (y) Every contract which  provides  coverage  for  prescription  drugs
shall  include  coverage  for the cost of enteral formulas for home use,
WHETHER ADMINISTERED ORALLY OR VIA TUBE FEEDING, for which  a  physician
or  other  licensed health care provider legally authorized to prescribe
under title eight of the education law has issued a written order.  Such
written  order shall state that the enteral formula is clearly medically
necessary and has been proven effective as a disease-specific  treatment
regimen  for  those  individuals  who are or will become malnourished or
suffer from disorders, which if left untreated, cause chronic  disabili-
ty,  mental  retardation  or  death. Specific diseases for which enteral
formulas have been proven effective shall include, but are  not  limited
to, inherited diseases of amino-acid or organic acid metabolism; Crohn's
Disease;  EOSINOPHILIC  ESOPHAGITIS  AND RELATED EOSINOPHILIC DISORDERS;
gastroesophageal reflux with failure to thrive; disorders  of  gastroin-
testinal  motility  such  as  chronic intestinal pseudo-obstruction; and
multiple, severe food allergies which if left untreated will cause maln-
ourishment, chronic physical disability, mental  retardation  or  death.

S. 2287                             3

Enteral  formulas  which are medically necessary and taken under written
order from a physician for the treatment of specific diseases  shall  be
distinguished  from  nutritional  supplements taken electively. Coverage
for certain inherited diseases of amino acid and organic acid metabolism
shall  include  modified  solid  food  products that are low protein, or
which contain modified protein which are medically necessary,  and  such
coverage  for such modified solid food products for any calendar year or
for any continuous period of twelve months for  any  insured  individual
shall not exceed two thousand five hundred dollars.
  S  5.  The  opening  paragraph  of  paragraph  25 of subsection (b) of
section 4322 of the insurance law, as amended by chapter 554 of the laws
of 2002, is amended to read as follows:
  Prescription drugs, including contraceptive drugs or devices  approved
by  the  federal  food  and  drug  administration or generic equivalents
approved as substitutes by such food and drug administration and  nutri-
tional  supplements  (formulas),  WHETHER  ADMINISTERED  ORALLY OR VIA A
FEEDING TUBE for the therapeutic treatment of phenylketonuria, branched-
chain ketonuria,  galactosemia,  EOSINOPHILIC  ESOPHAGITIS  AND  RELATED
EOSINOPHILIC  DISORDERS, and homocystinuria, obtained at a participating
pharmacy under a prescription  written  by  an  in-plan  or  out-of-plan
provider.  Health  maintenance  organizations,  in addition to providing
coverage for prescription drugs at a participating pharmacy, may utilize
a mail order prescription drug program. Health maintenance organizations
may provide prescription drugs pursuant to a  drug  formulary;  however,
health  maintenance  organizations  must implement an appeals process so
that the use of non-formulary prescription drugs may be requested  by  a
physician or other provider.
  S  6. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law and shall apply to  all
policies and contracts issued, renewed, modified, altered, or amended on
or after such date.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.