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Senate Bill S2938

2009-2010 Legislative Session

Discourages the practice by health plan insurers of changing brand name drugs to generic drugs which generic drugs are not the equivalent of brand name

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Archive: Last Bill Status - In Senate Committee Insurance Committee

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Bill Amendments

2009-S2938 - Details

See Assembly Version of this Bill:
A8863
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §§3221, 3216 & 4303, Ins L

2009-S2938 - Summary

Discourages the practice by health plan insurers of changing brand name drugs to generic drugs when generic drugs are not the equivalent of brand name.

2009-S2938 - Sponsor Memo

2009-S2938 - Bill Text download pdf

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

                                  2938

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 6, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- 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 group health insurance
  policies and prescription drug coverage

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

  Section  1.  Section  3221  of  the insurance law is amended by adding
three new subsections (r), (s) and (t) to read as follows:
  (R)(1) NO INSURANCE SHALL PROVIDE INCENTIVES (MONEY OR OTHERWISE) TO A
PRESCRIBING PHYSICIAN OF DRUGS THAT DISCRIMINATE ON  THE  BASIS  OF  THE
DRUG PRESCRIBED.
  (2) AN INSURER SHALL BE LIABLE FOR ANY INJURIES OR DAMAGE SUSTAINED BY
A MEMBER INSURED BY A GROUP HEALTH POLICY ISSUED UNDER THIS SECTION AS A
RESULT OF A MEMBER'S DRUG SUBSTITUTION OCCASIONED BY CHANGES TO EXISTING
FORMULARY OR CO-PAYMENT OR CO-INSURANCE PAYMENT STRUCTURES.
  (3)  WHEN  AN  INSURER  HAS  CHANGED  THE  DRUG MEDICATION OF A MEMBER
INSURED BY A GROUP HEALTH POLICY ISSUED UNDER THIS SECTION TO A  GENERIC
ALTERNATIVE WHICH ALTERNATIVE AS ATTESTED TO BY THE MEMBER'S PRESCRIBING
PHYSICIAN  IS  NOT  THE  EQUIVALENT  OF THE ORIGINAL PRESCRIBED DRUG THE
INSURER SHALL CONTINUE TO COVER AND PAY FOR THE ORIGINAL DRUG  AND  MAKE
SAID DRUG AVAILABLE TO THE MEMBER AS ORIGINALLY PRESCRIBED.
  (S)(1) THE FOLLOWING SHALL APPLY TO DEDUCTIBLE CO-PAYMENT AND CO-INSU-
RANCE  AMOUNTS ESTABLISHED BY INSURERS OF HEALTH PLANS ISSUED UNDER THIS
SECTION.
  (2) THE CO-PAYMENT AND CO-INSURANCE AMOUNT WITH RESPECT TO ANY COVERED
DRUG SHALL NOT EXCEED THE COST OF THE DRUG TO THE HEALTH PLAN.
  (3) SHOULD A HEALTH PLAN INCLUDE AN OUT OF POCKET LIMIT ON NON-PHARMA-
CY BENEFITS IT SHALL ALSO  PROVIDE  THAT  OUT  OF  POCKET  EXPENSES  FOR
COVERED PRESCRIPTION DRUGS SHALL BE INCLUDED AS MEDICAL BENEFIT EXPENSES
UNDER THE PLAN'S GENERAL OUT OF POCKET EXPENSE CAP.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08473-02-9

              

2009-S2938A (ACTIVE) - Details

See Assembly Version of this Bill:
A8863
Current Committee:
Senate Insurance
Law Section:
Insurance Law
Laws Affected:
Amd §§3221, 3216 & 4303, Ins L

2009-S2938A (ACTIVE) - Summary

Discourages the practice by health plan insurers of changing brand name drugs to generic drugs when generic drugs are not the equivalent of brand name.

2009-S2938A (ACTIVE) - Sponsor Memo

2009-S2938A (ACTIVE) - Bill Text download pdf

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

                                 2938--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 6, 2009
                               ___________

Introduced by Sens. KLEIN, ADAMS, HASSELL-THOMPSON, C. JOHNSON, ONORATO,
  OPPENHEIMER,  STAVISKY  --  read  twice  and ordered printed, and when
  printed to be committed to the Committee  on  Insurance  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the insurance law, in relation to health insurance poli-
  cies and prescription drug coverage

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

  Section 1. Section 3221 of the insurance law is amended by adding  two
new subsections (s) and (t) to read as follows:
  (S)  EVERY GROUP OR BLANKET POLICY DELIVERED OR ISSUED FOR DELIVERY IN
THIS STATE WHICH PROVIDES PRESCRIPTION DRUG COVERAGE SHALL:
  (1) LIMIT THE CO-PAYMENT AND CO-INSURANCE AMOUNTS WITH RESPECT TO  ANY
COVERED  DRUG  SO  THAT  IT SHALL NOT EXCEED THE COST OF THE DRUG TO THE
HEALTH PLAN.
  (2) PROVIDE AN OUT-OF-POCKET CAP  ON  PHARMACY  BENEFITS  FOR  COVERED
PRESCRIPTION DRUGS.
  (3)  LIMIT  THE  MAXIMUM  CO-PAYMENT  AND CO-INSURANCE AMOUNTS SO THEY
SHALL NOT EXCEED TEN TIMES THE DOLLAR VALUE OF THE LOWEST CO-PAYMENT AND
CO-INSURANCE AMOUNT WHOSE COST IS ABOVE ZERO DOLLARS.
  (T) EVERY GROUP OR BLANKET POLICY DELIVERED OR ISSUED FOR DELIVERY  IN
THIS STATE WHICH PROVIDES PRESCRIPTION DRUG COVERAGE SHALL BE SUBJECT TO
THE FOLLOWING PROVISIONS:
  (1)  WHEN  AN  INSURER  HAS REQUIRED THAT A MEMBER INSURED BY A HEALTH
POLICY ISSUED UNDER THIS SECTION TAKE A GENERIC ALTERNATIVE TO A  BRAND-
NAME  PATENTED  DRUG  PRESCRIBED BY THEIR DOCTOR, AND THE ALTERNATIVE IS
NOT DEEMED AS HAVING AN EQUIVALENT IMPACT ON THE MEMBER BY THE  MEMBER'S
PRESCRIBING PHYSICIAN AND IS NOT DEEMED AN A-RATED GENERICALLY AND THER-
APEUTICALLY  EQUIVALENT  PRODUCT  AS  DETERMINED BY THE FDA, THE INSURER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08473-07-9

              

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