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
S. 2938--A 2
SHALL PAY FOR AND MAKE AVAILABLE THE BRAND-NAME PATENTED DRUG ORIGINALLY
PRESCRIBED BY THE MEMBER'S DOCTOR.
(2) IN CASES WHERE STEP THERAPY IS REQUIRED PRIOR TO A PATIENT ACCESS-
ING A BRAND-NAME PATENTED PRESCRIPTION DRUG, THE PATIENT CAN RECEIVE THE
BRAND-NAME PATENTED PRESCRIPTION DRUG PRESCRIBED BY THEIR DOCTOR IF THE
PATIENT TRIES ONE ALTERNATIVE MEDICATION AND THE PATIENT'S DOCTOR DETER-
MINES THAT THE SINGLE SOURCE THERAPY REMAINS MEDICALLY NECESSARY.
(3) INSURERS MUST SUBMIT THEIR PRESCRIPTION DRUG FORMULARIES TO THE
DEPARTMENT AND ON AN ANNUAL BASIS, WHICH THE DEPARTMENT SHALL PUBLICLY
POST ON THEIR WEBSITE TO ENABLE CONSUMERS TO COMPARE DRUG FORMULARIES
DURING OPEN ENROLLMENT PERIODS. ONCE SUBMITTED, PLANS MAY NOT REMOVE OR
MAKE CHANGES TO THE DRUG FORMULARY MID-YEAR EXCEPT IN INSTANCES WHERE AN
A-RATED GENERICALLY AND THERAPEUTICALLY EQUIVALENT PRODUCT AS DETERMINED
BY THE FDA BECOMES AVAILABLE, THE DRUG IS RECALLED BY THE FOOD AND DRUG
ADMINISTRATION, OR SIGNIFICANT NEW SAFETY INFORMATION BECOMES AVAILABLE.
(4) A PATIENT RECEIVING COVERAGE FOR A DRUG ON AN INSURER'S EXISTING
FORMULARY SHALL NOT BE DENIED COVERAGE UPON A CHANGE IN THE FORMULARY IF
HIS OR HER PHYSICIAN DETERMINES THAT DRUG TO BE MEDICALLY NECESSARY.
S 2. Section 3216 of the insurance law is amended by adding two new
subsections (j-1) and (j-2) to read as follows:
(J-1) EVERY POLICY OF ACCIDENT AND HEALTH INSURANCE DELIVERED OR
ISSUED FOR DELIVERY TO ANY PERSON 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.
(J-2) EVERY POLICY OF ACCIDENT AND HEALTH INSURANCE DELIVERED OR
ISSUED FOR DELIVERY TO ANY PERSON 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
SHALL PAY FOR AND MAKE AVAILABLE THE BRAND-NAME PATENTED DRUG ORIGINALLY
PRESCRIBED BY THE MEMBER'S DOCTOR.
(2) IN CASES WHERE STEP THERAPY IS REQUIRED PRIOR TO A PATIENT ACCESS-
ING A BRAND-NAME PATENTED PRESCRIPTION DRUG, THE PATIENT CAN RECEIVE THE
BRAND-NAME PATENTED PRESCRIPTION DRUG PRESCRIBED BY THEIR DOCTOR IF THE
PATIENT TRIES ONE ALTERNATIVE MEDICATION AND THE PATIENT'S DOCTOR DETER-
MINES THAT THE SINGLE SOURCE THERAPY REMAINS MEDICALLY NECESSARY.
(3) INSURERS MUST SUBMIT THEIR PRESCRIPTION DRUG FORMULARIES TO THE
DEPARTMENT AND ON AN ANNUAL BASIS, WHICH THE DEPARTMENT SHALL PUBLICLY
POST ON THEIR WEBSITE TO ENABLE CONSUMERS TO COMPARE DRUG FORMULARIES
DURING OPEN ENROLLMENT PERIODS. ONCE SUBMITTED, PLANS MAY NOT REMOVE OR
MAKE CHANGES TO THE DRUG FORMULARY MID-YEAR EXCEPT IN INSTANCES WHERE AN
A-RATED GENERICALLY AND THERAPEUTICALLY EQUIVALENT PRODUCT AS DETERMINED
BY THE FDA BECOMES AVAILABLE, THE DRUG IS RECALLED BY THE FOOD AND DRUG
ADMINISTRATION, OR SIGNIFICANT NEW SAFETY INFORMATION BECOMES AVAILABLE.
S. 2938--A 3
(4) A PATIENT RECEIVING COVERAGE FOR A DRUG ON AN INSURER'S EXISTING
FORMULARY SHALL NOT BE DENIED COVERAGE UPON A CHANGE IN THE FORMULARY IF
HIS OR HER PHYSICIAN DETERMINES THAT DRUG TO BE MEDICALLY NECESSARY.
S 3. Section 4303 of the insurance law is amended by adding two new
subsections (gg) and (hh) to read as follows:
(GG) EVERY CONTRACT ISSUED BY A HOSPITAL SERVICE CORPORATION OR HEALTH
SERVICE CORPORATION 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 CONTRACT.
(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.
(HH) EVERY CONTRACT ISSUED BY A HOSPITAL SERVICE CORPORATION OR HEALTH
SERVICE CORPORATION 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
CONTRACT 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 THERAPEUTICALLY EQUIVALENT PRODUCT AS DETERMINED BY THE FDA, THE
INSURER SHALL PAY FOR AND MAKE AVAILABLE THE BRAND-NAME PATENTED DRUG
ORIGINALLY PRESCRIBED BY THE MEMBER'S DOCTOR.
(2) IN CASES WHERE STEP THERAPY IS REQUIRED PRIOR TO A PATIENT ACCESS-
ING A BRAND-NAME PATENTED PRESCRIPTION DRUG, THE PATIENT CAN RECEIVE THE
BRAND-NAME PATENTED PRESCRIPTION DRUG PRESCRIBED BY THEIR DOCTOR IF THE
PATIENT TRIES ONE ALTERNATIVE MEDICATION AND THE PATIENT'S DOCTOR DETER-
MINES THAT THE SINGLE SOURCE THERAPY REMAINS MEDICALLY NECESSARY.
(3) INSURERS MUST SUBMIT THEIR PRESCRIPTION DRUG FORMULARIES TO THE
DEPARTMENT AND ON AN ANNUAL BASIS, WHICH THE DEPARTMENT SHALL PUBLICLY
POST ON THEIR WEBSITE TO ENABLE CONSUMERS TO COMPARE DRUG FORMULARIES
DURING OPEN ENROLLMENT PERIODS. ONCE SUBMITTED, PLANS MAY NOT REMOVE OR
MAKE CHANGES TO THE DRUG FORMULARY MID-YEAR EXCEPT IN INSTANCES WHERE AN
A-RATED GENERICALLY AND THERAPEUTICALLY EQUIVALENT PRODUCT AS DETERMINED
BY THE FDA BECOMES AVAILABLE, THE DRUG IS RECALLED BY THE FOOD AND DRUG
ADMINISTRATION, OR SIGNIFICANT NEW SAFETY INFORMATION BECOMES AVAILABLE.
(4) A PATIENT RECEIVING COVERAGE FOR A DRUG ON AN INSURER'S EXISTING
FORMULARY SHALL NOT BE DENIED COVERAGE UPON A CHANGE IN THE FORMULARY IF
HIS OR HER PHYSICIAN DETERMINES THAT DRUG TO BE MEDICALLY NECESSARY.
S 4. This act shall take effect one year after the date on which this
act shall have become a law.