Florida Senate - 2019 COMMITTEE AMENDMENT Bill No. CS for CS for SB 1180 Ì385052ÇÎ385052 LEGISLATIVE ACTION Senate . House Comm: RCS . 04/23/2019 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Rules (Mayfield) recommended the following: 1 Senate Amendment to Amendment (635224) (with title 2 amendment) 3 4 Delete lines 16 - 166 5 and insert: 6 (5)(a) This section does not apply if a drug manufacturer 7 increases the list price of a prescription drug on the health 8 insurer’s formulary to the health insurer or the pharmacy 9 benefit manager after November 1 of the year before the health 10 insurer’s earliest required rate submission date to applicable 11 state and federal rate review authorities for the succeeding 12 calendar or policy year. 13 (b) However, at least 60 days before the effective date of 14 a formulary change as a result of circumstances described in 15 paragraph (a), the health insurer shall provide general 16 notification of the formulary changes to current and prospective 17 insureds in a readily accessible format on the insurer’s 18 website; and notify, electronically or by first-class mail, any 19 insured currently receiving coverage for a prescription drug for 20 which the formulary change modifies coverage and the insured’s 21 treating physician, including information on the specific drugs 22 involved. 23 (6) A health insurer shall maintain a record of any change 24 in its formulary during the calendar or plan year and, within 45 25 days after the end of the plan year, submit an annual report to 26 the office delineating such changes. The commission shall 27 prescribe a form by rule for such reports. 28 Section 2. Paragraph (e) of subsection (5) of section 29 627.6699, Florida Statutes, is amended to read: 30 627.6699 Employee Health Care Access Act.— 31 (5) AVAILABILITY OF COVERAGE.— 32 (e) All health benefit plans issued under this section must 33 comply with the following conditions: 34 1. For employers who have fewer than two employees, a late 35 enrollee may be excluded from coverage for no longer than 24 36 months if he or she was not covered by creditable coverage 37 continually to a date not more than 63 days before the effective 38 date of his or her new coverage. 39 2. Any requirement used by a small employer carrier in 40 determining whether to provide coverage to a small employer 41 group, including requirements for minimum participation of 42 eligible employees and minimum employer contributions, must be 43 applied uniformly among all small employer groups having the 44 same number of eligible employees applying for coverage or 45 receiving coverage from the small employer carrier, except that 46 a small employer carrier that participates in, administers, or 47 issues health benefits pursuant to s. 381.0406 which do not 48 include a preexisting condition exclusion may require as a 49 condition of offering such benefits that the employer has had no 50 health insurance coverage for its employees for a period of at 51 least 6 months. A small employer carrier may vary application of 52 minimum participation requirements and minimum employer 53 contribution requirements only by the size of the small employer 54 group. 55 3. In applying minimum participation requirements with 56 respect to a small employer, a small employer carrier shall not 57 consider as an eligible employee employees or dependents who 58 have qualifying existing coverage in an employer-based group 59 insurance plan or an ERISA qualified self-insurance plan in 60 determining whether the applicable percentage of participation 61 is met. However, a small employer carrier may count eligible 62 employees and dependents who have coverage under another health 63 plan that is sponsored by that employer. 64 4. A small employer carrier shall not increase any 65 requirement for minimum employee participation or any 66 requirement for minimum employer contribution applicable to a 67 small employer at any time after the small employer has been 68 accepted for coverage, unless the employer size has changed, in 69 which case the small employer carrier may apply the requirements 70 that are applicable to the new group size. 71 5. If a small employer carrier offers coverage to a small 72 employer, it must offer coverage to all the small employer’s 73 eligible employees and their dependents. A small employer 74 carrier may not offer coverage limited to certain persons in a 75 group or to part of a group, except with respect to late 76 enrollees. 77 6. A small employer carrier may not modify any health 78 benefit plan issued to a small employer with respect to a small 79 employer or any eligible employee or dependent through riders, 80 endorsements, or otherwise to restrict or exclude coverage for 81 certain diseases or medical conditions otherwise covered by the 82 health benefit plan. 83 7. An initial enrollment period of at least 30 days must be 84 provided. An annual 30-day open enrollment period must be 85 offered to each small employer’s eligible employees and their 86 dependents. A small employer carrier must provide special 87 enrollment periods as required by s. 627.65615. 88 8. A small employer carrier shall comply with s. 627.42393 89 for any change to a prescription drug formulary. 90 Section 3. Subsection (36) of section 641.31, Florida 91 Statutes, is amended to read: 92 641.31 Health maintenance contracts.— 93 (36) Except as provided in paragraphs (a), (b), and (c), a 94 health maintenance organization may increase the copayment for 95 any benefit, or delete, amend, or limit any of the benefits to 96 which a subscriber is entitled under the group contract only, 97 upon written notice to the contract holder at least 45 days in 98 advance of the time of coverage renewal. The health maintenance 99 organization may amend the contract with the contract holder, 100 with such amendment to be effective immediately at the time of 101 coverage renewal. The written notice to the contract holder must 102shallspecifically identify any deletions, amendments, or 103 limitations to any of the benefits provided in the group 104 contract during the current contract period which will be 105 included in the group contract upon renewal. This subsection 106 does not apply to any increases in benefits. The 45-day notice 107 requirement doesshallnot apply if benefits are amended, 108 deleted, or limited at the request of the contract holder. 109 (a) At least 60 days before the effective date of any 110 change to a prescription drug formulary during a contract year, 111 the health maintenance organization shall: 112 1. Provide general notification of the change in the 113 formulary to current and prospective subscribers in a readily 114 accessible format on the health maintenance organization’s 115 website; and 116 2. Notify, electronically or by first-class mail, any 117 subscriber currently receiving coverage for a prescription drug 118 for which the formulary change modifies coverage and the 119 subscriber’s treating physician, including information on the 120 specific drugs involved and a statement that the submission of a 121 notice of medical necessity by the subscriber’s treating 122 physician to the health maintenance organization at least 30 123 days before the effective date of the formulary change will 124 result in continuation of coverage at the existing level. 125 (b) The notice provided by the treating physician to the 126 insurer must include a completed one-page form in which the 127 treating physician certifies to the health maintenance 128 organization that coverage of the prescription drug for the 129 subscriber is medically necessary. The treating physician shall 130 submit the notice electronically or by first-class mail. The 131 health maintenance organization may provide the treating 132 physician with access to an electronic portal through which the 133 treating physician may electronically file the notice. The 134 commission shall prescribe a form by rule for the notice. 135 (c) If the treating physician certifies to the health 136 maintenance organization, in accordance with paragraph (b), that 137 the prescription drug is medically necessary for the subscriber, 138 the health maintenance organization: 139 1. Must authorize coverage for the prescribed drug based 140 solely on the treating physician’s certification that coverage 141 is medically necessary; and 142 2. May not modify the coverage related to the covered drug 143 by: 144 a. Increasing the out-of-pocket costs for the covered drug; 145 b. Moving the covered drug to a more restrictive tier; or 146 c. Denying a subscriber coverage of the drug for which the 147 subscriber has been previously approved for coverage by the 148 health maintenance organization. 149 (d) Paragraphs (a), (b), and (c) do not: 150 1. Prohibit the addition of prescription drugs to the list 151 of drugs covered under the contract during the contract year. 152 2. Apply to a grandfathered health plan as defined in s. 153 627.402 or to benefits specified in s. 627.6513(1)-(14). 154 3. Alter or amend s. 465.025, which provides conditions 155 under which a pharmacist may substitute a generically equivalent 156 drug product for a brand name drug product. 157 4. Alter or amend s. 465.0252, which provides conditions 158 under which a pharmacist may dispense a substitute biological 159 product for the prescribed biological product. 160 5. Apply to a Medicaid managed care plan under part IV of 161 chapter 409. 162 (e)1. Paragraphs (a), (b), and (c) do not apply if a drug 163 manufacturer increases the list price of a prescription drug on 164 the health maintenance organization’s formulary to the health 165 maintenance organization or the pharmacy benefit manager after 166 November 1 of the year before the health maintenance 167 organization’s earliest required rate submission date to 168 applicable state and federal rate review authorities for the 169 succeeding calendar or policy year. 170 2. However, at least 60 days before the effective date of a 171 formulary change as a result of circumstances described in 172 subparagraph 1., the health maintenance organization shall 173 provide general notification of the formulary changes to current 174 and prospective subscribers in a readily accessible format on 175 the health maintenance organization’s website; and notify, 176 electronically or by first-class mail, any subscriber currently 177 receiving coverage for a prescription drug for which the 178 formulary change modifies coverage and the subscriber’s treating 179 physician, including information on the specific drugs involved. 180 (f) A health maintenance organization shall maintain a 181 record of any change in its formulary during the calendar or 182 plan year and, within 45 days after the end of the plan year, 183 submit an annual report to the office delineating such changes. 184 The commission shall prescribe a form by rule for such reports. 185 186 ================= T I T L E A M E N D M E N T ================ 187 And the title is amended as follows: 188 Delete lines 172 - 194 189 and insert: 190 applicability; providing an exception for certain 191 increases in prescription drug prices by the drug 192 manufacturer; specifying notification requirements for 193 insurers under such circumstances; requiring insurers 194 to maintain a record of formulary changes and submit 195 an annual report to the Office of Insurance Regulation 196 delineating such changes within a certain timeframe; 197 requiring the Financial Services Commission to adopt a 198 certain form by rule; amending s. 627.6699, F.S.; 199 requiring small employer carriers to comply with 200 certain requirements for any change to a prescription 201 drug formulary under the health benefit plan; amending 202 s. 641.31, F.S.; requiring health maintenance 203 organizations to provide certain notices to current 204 and prospective subscribers within a certain timeframe 205 before the effective date of any change to a 206 prescription drug formulary during a contract year; 207 specifying requirements for a notice of medical 208 necessity that a subscriber’s treating physician may 209 submit to the health maintenance organization within a 210 certain timeframe; specifying means by which the 211 notice is to be submitted; requiring the commission to 212 adopt a certain rule; specifying a requirement and 213 prohibited acts relating to coverage changes by a 214 health maintenance organization if the treating 215 physician provides certain certification; providing 216 construction and applicability; providing an exception 217 for certain increases in prescription drug prices by 218 the drug manufacturer; specifying notification 219 requirements for health maintenance organizations 220 under such circumstances; requiring health maintenance 221 organizations to maintain a record of formulary 222 changes and submit an annual report to the office 223 delineating such changes within a certain timeframe; 224 requiring the commission to adopt a certain form by 225 rule; providing a