Bill

Bill > A2537


NJ A2537

NJ A2537
Prohibits prior authorization when prescribing certain drugs.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 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 insurance companies and other health plan administrators, referred to as "carriers," from requiring a process called "prior authorization" before a doctor can prescribe certain medications. Prior authorization is a system where a carrier checks if a prescribed service is medically necessary before approving coverage. Specifically, this bill prevents carriers from using prior authorization when a doctor prescribes an "interchangeable drug" if the original brand-name drug or its generic version is unavailable, ensuring patients can still access necessary medications during shortages.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Introduced, Referred to Assembly Financial Institutions and Insurance Committee (on 01/13/2026)

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