AB 381 — Revises provisions governing prescription drugs covered by certain policies of health insurance. (BDR 57-698)

(ReprintedAssembly withBill amendmentsNo. adopted on May 22, 2017) SECOND REPRINT A.B.

381381–Assemblywoman ASSEMBLYSpiegel BILLCHAPTER.......... NO .

381–ASSEMBLYWOMAN SPIEGEL M ARCH 20, 2017 ____________ Referred to Committee on Commerce and Labor SUMMARY—Revises provisions governing prescription drugs covered by certain policies of health insurance.

(BDR 57-698) FISCAL NOTE:

Effect on Local Government:

May have Fiscal Impact.

Effect on the State:

Yes.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

LegislativeLegUnder Counsel’sexisting Digest:law, policies of health insurance may provide coverage for prescription drugs.

UnderPrescription existingdrugs law,which policiesare covered by a policy of health insurance are organized into a formulary, which is an official list of the prescription drugs, and that formulary may providebe coveragesubcategorized forbased upon the cost to the insured person to purchase the prescription drugs.drug under the policy of health insurance.

Prescription drugs which are covered by a policy of health drugs, and that formulary may be subcategorized based upon the cost to the insuredption person to purchase the prescription drug under the policy of health insurance.

If a particular prescription drug is moved by the insurer from a lower cost tier to a higher cost tier, the insured person purchasing the prescription drug will need to pay more to purchase the prescription drug after the prescription drug is moved to the higher cost tier.

Section 1 of this bill prohibits certain insurers from moving a prescription drug from a lower cost tier to a higher cost tier under certain policies of health insurance issued to an individual or a small employer, except on specified dates or when an applicable generic drug is added to the formulary under specified circumstances.

Sectionfrom 1a doeshigher notcost preventtier suchto ana insurerlower from:cost tier;

(1) moving a prescription drug from a higher cost tier to a lower cost tier;

Further, section 1 does not limit the conditions under which a pharmacist is otherwise authorized or (2)required anto interchangeablesubstitute: biological product for a biological product prescribed byor brand name.

-(1) *AB381_R2*a –generic 2drug –for THEa PEOPLEdrug OFprescribed THEby STATEbrand OFname; NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

or (2) an interchangeable biological product for a biological product prescribed by brand name.

EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

and - 79th Session (2017) – 2 – (2) Is being added to the formulary at:

or (II) A cost tier which has a smaller deductible, copaymentoriginal orprescription coinsurancedrug thanis thebeing costmoved.r tier from which the original2. prescription drug is being moved.

2.

(b)(c) RemovingAdding a prescription drug fromto a formulary;formulary.ary;

or -4. *AB381_R2* – 3 – (c) Adding a prescription drug to a formulary.

4.

(a) “Biological product” has the meaning ascribed to it in sec(b)section “Individual2 carrier”of hasAssembly theBill meaningNo. ascribed to it in NRS 689A.550.

245 of this session.

(b) “Individual carrier” has the meaning ascribed to it in NRS 689A.550.

- 79th Session (2017) – 3 – (1) An individual carrier;

and (2)otherwise Aprovides governmentala entitypolicy whichof offers,health administersinsurance.dministers or otherwise(d) provides“Interchangeable abiological policyproduct” has the meaning ascribed to it in section 3 of healthAssembly insurance.Bill No.

(d) “Interchangeable biological product” has the meaning ascribed to it in section 3 of Assembly Bill No.

Sec.Secs.

2.2-4.

3.

(Deleted by amendment.) Sec.

4.