S T A T E   O F   N E W   Y O R K
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                                  6618

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                             March 23, 2011
                               ___________

Introduced by M. of A. CURRAN -- read once and referred to the Committee
  on Insurance

AN  ACT  to  amend  the  insurance  law,  in relation to the purchase of
  prescription drugs

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

  Section  1.  Subsection  (i)  of  section 3216 of the insurance law is
amended by adding a new paragraph 28 to read as follows:
  (28) NO POLICY WHICH PROVIDES  COVERAGE  FOR  PRESCRIBED  DRUGS  SHALL
MANDATE  THAT  THE  SAME  BE  PURCHASED BY THE INSURED FROM A MAIL ORDER
PHARMACY, NOR MAY SUCH POLICY IMPOSE A CO-PAYMENT FEE OR OTHER CONDITION
ON ANY INSURED WHO ELECTS TO PURCHASE DRUGS FROM OTHER THAN A MAIL ORDER
PHARMACY WHICH IS NOT ALSO IMPOSED  ON  INSUREDS  ELECTING  TO  PURCHASE
DRUGS FROM A DESIGNATED MAIL ORDER PHARMACY.
  S 2. Subsection (1) of section 3221 of the insurance law is amended by
adding a new paragraph 18 to read as follows:
  (18)  NO  INSURER  DELIVERING  A  GROUP OR BLANKET POLICY OR ISSUING A
GROUP OR BLANKET POLICY FOR DELIVERY IN THIS STATE WHICH PROVIDES COVER-
AGE FOR PRESCRIBED DRUGS SHALL MANDATE THAT THE SAME BE PURCHASED BY THE
INSURED FROM A MAIL ORDER PHARMACY, NOR MAY SUCH POLICY IMPOSE A CO-PAY-
MENT FEE OR OTHER CONDITION ON ANY INSURED WHO ELECTS TO PURCHASE  DRUGS
FROM  OTHER  THAN  A  MAIL  ORDER  PHARMACY WHICH IS NOT ALSO IMPOSED ON
INSUREDS ELECTING TO PURCHASE DRUGS FROM A DESIGNATED MAIL ORDER PHARMA-
CY.
  S 3. Section 4303 of the insurance law is amended by  adding    a  new
subsection (hh) to read as follows:
  (HH)  NO  POLICY  ISSUED BY A MEDICAL EXPENSE INDEMNITY CORPORATION, A
HOSPITAL SERVICE CORPORATION OR  A  HEALTH  SERVICES  CORPORATION  WHICH
PROVIDES  COVERAGE  FOR  PRESCRIBED DRUGS SHALL MANDATE THAT THE SAME BE
PURCHASED BY THE INSURED FROM A MAIL ORDER PHARMACY, NOR MAY SUCH POLICY
IMPOSE A CO-PAYMENT FEE OR OTHER CONDITION ON ANY INSURED WHO ELECTS  TO

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08507-01-1
              

A. 6618                             2

PURCHASE  DRUGS  FROM OTHER THAN A MAIL ORDER PHARMACY WHICH IS NOT ALSO
IMPOSED ON INSUREDS ELECTING TO PURCHASE DRUGS FROM  A  DESIGNATED  MAIL
ORDER PHARMACY.
  S 4.  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 effective date.