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AR HB1300

AR HB1300
To Amend The Prior Authorization Transparency Act.


summary

Introduced
01/29/2025
In Committee
04/01/2025
Crossed Over
03/17/2025
Passed
04/04/2025
Dead
Signed/Enacted/Adopted
04/10/2025

Introduced Session

95th General Assembly (2025 Regular)

Bill Summary

AN ACT TO AMEND THE PRIOR AUTHORIZATION TRANSPARENCY ACT; TO MODIFY THE DEFINITION OF "PRIOR AUTHORIZATION" UNDER THE PRIOR AUTHORIZATION TRANSPARENCY ACT; TO CLARIFY DISCLOSURE REQUIREMENTS; TO REQUIRE ADDITIONAL DISCLOSURES BY A UTILIZATION REVIEW ENTITY UNDER THE PRIOR AUTHORIZATION TRANSPARENCY ACT; TO EXEMPT CERTAIN HEALTHCARE SERVICES FROM PRIOR AUTHORIZATION; TO CLARIFY THE DURATION OF APPROVED PRIOR AUTHORIZATION REQUESTS; TO CREATE A PROCESS FOR REVIEW OR APPROVAL OF A HEALTHCARE SERVICE UPON FAILURE OF A UTILIZATION REVIEW ENTITY TO COMPLY WITH THE PRIOR AUTHORIZATION TRANSPARENCY ACT; AND FOR OTHER PURPOSES.

AI Summary

This bill amends the Prior Authorization Transparency Act to enhance healthcare insurance transparency and oversight. The bill creates a new trust fund to collect fines and support education and enforcement efforts related to prior authorization processes. It expands the definition of "healthcare service" to include specific medical coding identifiers and redefines "prior authorization" more comprehensively to include various review processes. The bill requires utilization review entities to publicly disclose their prior authorization requirements, clinical criteria, and restrictions in clear, accessible formats, including detailed lists of services requiring prior authorization and their associated billing codes. Additionally, the bill establishes new requirements for how prior authorizations are issued, including specifying that authorizations should cover entire courses of treatment and be medically reasonable. The legislation also creates a more robust enforcement mechanism, allowing the Insurance Commissioner to investigate and fine healthcare insurers and utilization review entities for non-compliance, with penalties ranging from $1,000 to $5,000 per violation and up to $100,000 for repeated systemic failures. The bill aims to increase transparency, simplify the prior authorization process, and provide clearer guidance for healthcare providers and patients.

Committee Categories

Business and Industry

Sponsors (2)

Last Action

Notification that HB1300 is now Act 510 (on 04/10/2025)

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