Bill

Bill > A4232


NJ A4232

NJ A4232
Prohibits prior authorization when prescribing certain drugs.


summary

Introduced
05/02/2024
In Committee
05/02/2024
Crossed Over
Passed
Dead

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill prohibits the use of prior authorization under certain circumstances. "Prior authorization" is defined in the bill as a process used by a carrier to determine the medical necessity of an otherwise covered service. This bill prohibits the use of this process by a carrier for prescribing an interchangeable drug if the brand name drug or generic version is not available. "Carrier" is defined in the bill to mean an insurance company, health service corporation, hospital service corporation, medical service corporation, or health maintenance organization authorized to issue health benefits plans in this State or any entity contracted to administer health benefits in connection with the State Health Benefits Program or School Employees' Health Benefits Program.

AI Summary

This bill prohibits the use of prior authorization by insurance carriers when prescribing an interchangeable drug if the brand name drug or generic version is not available. Prior authorization is a process used by carriers to determine the medical necessity of a covered service. The bill defines "carrier" as an insurance company, health service corporation, hospital service corporation, medical service corporation, or health maintenance organization authorized to issue health benefits plans in New Jersey or any entity contracted to administer health benefits for the State Health Benefits Program or School Employees' Health Benefits Program.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 05/02/2024)

bill text


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