130th Ohio General Assembly
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S. B. No. 194  As Introduced
As Introduced

129th General Assembly
Regular Session
2011-2012
S. B. No. 194


Senators Gillmor, Oelslager 

Cosponsor: Senator Tavares 



A BILL
To amend sections 1739.05 and 1751.35 and to enact sections 1751.68, 1751.69, 3923.84, 3923.85, and 4729.43 of the Revised Code regarding the delivery of certain non-self-injectable and compounded medications and insurance coverage for orally administered cancer medications.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 1739.05 and 1751.35 be amended and sections 1751.68, 1751.69, 3923.84, 3923.85, and 4729.43 of the Revised Code be enacted to read as follows:
Sec. 1739.05.  (A) A multiple employer welfare arrangement that is created pursuant to sections 1739.01 to 1739.22 of the Revised Code and that operates a group self-insurance program may be established only if any of the following applies:
(1) The arrangement has and maintains a minimum enrollment of three hundred employees of two or more employers.
(2) The arrangement has and maintains a minimum enrollment of three hundred self-employed individuals.
(3) The arrangement has and maintains a minimum enrollment of three hundred employees or self-employed individuals in any combination of divisions (A)(1) and (2) of this section.
(B) A multiple employer welfare arrangement that is created pursuant to sections 1739.01 to 1739.22 of the Revised Code and that operates a group self-insurance program shall comply with all laws applicable to self-funded programs in this state, including sections 3901.04, 3901.041, 3901.19 to 3901.26, 3901.38, 3901.381 to 3901.3814, 3901.40, 3901.45, 3901.46, 3902.01 to 3902.14, 3923.24, 3923.282, 3923.30, 3923.301, 3923.38, 3923.581, 3923.63, 3923.80, 3923.84, 3923.85, 3924.031, 3924.032, and 3924.27 of the Revised Code.
(C) A multiple employer welfare arrangement created pursuant to sections 1739.01 to 1739.22 of the Revised Code shall solicit enrollments only through agents or solicitors licensed pursuant to Chapter 3905. of the Revised Code to sell or solicit sickness and accident insurance.
(D) A multiple employer welfare arrangement created pursuant to sections 1739.01 to 1739.22 of the Revised Code shall provide benefits only to individuals who are members, employees of members, or the dependents of members or employees, or are eligible for continuation of coverage under section 1751.53 or 3923.38 of the Revised Code or under Title X of the "Consolidated Omnibus Budget Reconciliation Act of 1985," 100 Stat. 227, 29 U.S.C.A. 1161, as amended.
Sec. 1751.35.  (A) The superintendent of insurance may suspend or revoke any certificate of authority issued to a health insuring corporation under this chapter if the superintendent finds that:
(1) The health insuring corporation is operating in contravention of its articles of incorporation, its health care plan or plans, or in a manner contrary to that described in and reasonably inferred from any other information submitted under section 1751.03 of the Revised Code, unless amendments to such submissions have been filed and have taken effect in compliance with this chapter.
(2) The health insuring corporation fails to issue evidences of coverage in compliance with the requirements of section 1751.11 of the Revised Code.
(3) The contractual periodic prepayments or premium rates used do not comply with the requirements of section 1751.12 of the Revised Code.
(4) The health insuring corporation enters into a contract, agreement, or other arrangement with any health care facility or provider, that does not comply with the requirements of section 1751.13 of the Revised Code, or the corporation fails to provide an annual certificate as required by section 1751.13 of the Revised Code.
(5) The superintendent determines, after a hearing conducted in accordance with Chapter 119. of the Revised Code, that the health insuring corporation no longer meets the requirements of section 1751.04 of the Revised Code.
(6) The health insuring corporation is no longer financially responsible and may reasonably be expected to be unable to meet its obligations to enrollees or prospective enrollees.
(7) The health insuring corporation has failed to implement the complaint system that complies with the requirements of section 1751.19 of the Revised Code.
(8) The health insuring corporation, or any agent or representative of the corporation, has advertised, merchandised, or solicited on its behalf in contravention of the requirements of section 1751.31 of the Revised Code.
(9) The health insuring corporation has unlawfully discriminated against any enrollee or prospective enrollee with respect to enrollment, disenrollment, or price or quality of health care services.
(10) The continued operation of the health insuring corporation would be hazardous or otherwise detrimental to its enrollees.
(11) The health insuring corporation has submitted false information in any filing or submission required under this chapter or any rule adopted under this chapter.
(12) The health insuring corporation has otherwise failed to substantially comply with this chapter or any rule adopted under this chapter.
(13) The health insuring corporation is not operating a health care plan.
(14) The health insuring corporation has failed to comply with any of the requirements of sections 1751.77 to 1751.88 of the Revised Code.
(15) The health insuring corporation has failed to comply with section 1751.68 or 1751.69 of the Revised Code.
(B) A certificate of authority shall be suspended or revoked only after compliance with the requirements of Chapter 119. of the Revised Code.
(C) When the certificate of authority of a health insuring corporation is suspended, the health insuring corporation, during the period of suspension, shall not enroll any additional subscribers or enrollees except newborn children or other newly acquired dependents of existing subscribers or enrollees, and shall not engage in any advertising or solicitation whatsoever.
(D) When the certificate of authority of a health insuring corporation is revoked, the health insuring corporation, following the effective date of the order of revocation, shall conduct no further business except as may be essential to the orderly conclusion of the affairs of the health insuring corporation. The health insuring corporation shall engage in no further advertising or solicitation whatsoever. The superintendent, by written order, may permit such further operation of the health insuring corporation as the superintendent may find to be in the best interest of enrollees, to the end that enrollees will be afforded the greatest practical opportunity to obtain continuing health care coverage.
Sec. 1751.68.  (A) As used in this section:
(1) "Dangerous drug" has the same meaning as in section 4729.01 of the Revised Code.
(2) "Non-self-injectable medication" means a dangerous drug intended for administration by injection that an individual cannot reasonably self-administer.
(B) No individual or group health insuring corporation policy, contract, or agreement providing basic health care services or prescription drug services that is delivered, issued for delivery, or renewed in this state, if the policy, contract, or agreement provides coverage for non-self-injectable medications, medications that must be compounded immediately prior to administration, or both, shall require an enrollee to have such a medication delivered directly to the enrollee by mail or any means of commercial shipment.
(C) The superintendent of insurance may conduct hearings to determine whether violations of this section have occurred. The hearings shall be conducted in accordance with Chapter 119. of the Revised Code.
(D) If the superintendent, by written order, finds that a health insuring corporation has violated this section, the superintendent may do one or more of the following:
(1) Issue an order requiring the health insuring corporation to cease and desist from engaging in the violation;
(2) Pursuant to division (A)(15) of section 1751.35 of the Revised Code, suspend or revoke the health insuring corporation's certificate of authority issued under this chapter;
(3) Order the health insuring corporation neither to employ any individual who is associated with the violation nor permit such an individual to serve as a director, consultant, or in any other capacity for a duration of time the superintendent determines would best serve the public interest.
(E) In addition to the sanctions the superintendent may impose under division (D) of this section, a court may do either or both of the following:
(1) Impose a civil penalty on the health insuring corporation, not to exceed an aggregate amount of thirty-five thousand dollars, for one or more violations of this section that occur in any six-month period;
(2) Impose a civil penalty on the health insuring corporation not to exceed ten thousand dollars for each violation of a cease and desist order described in division (D)(1) of this section.
(F) All money collected under this section shall be deposited in the state treasury to the credit of the department of insurance's operating fund and shall be used only for the purpose of enforcing this section and sections 1751.69, 3923.84, and 3923.85 of the Revised Code.
Sec. 1751.69.  (A) Notwithstanding section 3901.71 of the Revised Code and subject to division (B) of this section, no individual or group health insuring corporation policy, contract, or agreement providing basic health care services or prescription drug services that is delivered, issued for delivery, or renewed in this state, if the policy, contract, or agreement provides coverage for cancer chemotherapy treatment, shall fail to comply with any of the following:
(1) The policy, contract, or agreement shall not provide coverage for a prescribed, orally administered cancer medication on a less favorable basis than the coverage it provides for intraveneously administered or injected cancer medications. This includes a prohibition on imposing a coverage limit, copayment, coinsurance, deductible, or other out-of-pocket expense that is greater than any coverage limit, copayment, coinsurance, deductible, or other out-of-pocket expense in the policy, contract, or agreement that applies to coverage for intraveneously administered or injected cancer medications.
(2) The policy, contract, or agreement shall not impose a coverage limit, copayment, coinsurance, deductible, or other out-of-pocket expense on a prescribed, orally administered cancer medication or intraveneously administered or injected cancer medication that is greater than the coverage limit, copayment, coinsurance, deductible, or other out-of-pocket expense that applies to the medication on the effective date of this section.
(3) The policy, contract, or agreement shall not place a prescribed, orally administered cancer medication or intraveneously administered or injected cancer medication in a more expensive price tier than the price tier the medication is in on the effective date of this section.
(4) The policy, contract, or agreement shall not impose conditions on an enrollee's treatment with prescribed, orally administered cancer medication or intraveneously administered or injected cancer medication that are more restrictive than the conditions that apply to an enrollee's treatment with the medication on the effective date of this section.
(B) The prohibitions in division (A) of this section do not preclude an individual or group health insuring corporation policy, contract, or agreement from requiring an enrollee to obtain prior authorization before orally administered cancer medication is dispensed to the enrollee.
(C) The superintendent of insurance may conduct hearings to determine whether violations of this section have occurred. The hearings shall be conducted in accordance with Chapter 119. of the Revised Code.
(D) If the superintendent, by written order, finds that a health insuring corporation has violated this section, the superintendent may do one or more of the following:
(1) Issue an order requiring the health insuring corporation to cease and desist from engaging in the violation;
(2) Pursuant to division (A)(15) of section 1751.35 of the Revised Code, suspend or revoke the health insuring corporation's certificate of authority issued under this chapter;
(3) Order the health insuring corporation neither to employ any individual who is associated with the violation nor permit such an individual to serve as a director, consultant, or in any other capacity for a duration of time the superintendent determines would best serve the public interest.
(E) In addition to the sanctions the superintendent may impose under division (D) of this section, a court may do either or both of the following:
(1) Impose a civil penalty on the health insuring corporation, not to exceed an aggregate amount of thirty-five thousand dollars, for one or more violations of this section that occur in any six-month period;
(2) Impose a civil penalty on the health insuring corporation not to exceed ten thousand dollars for each violation of a cease and desist order described in division (D)(1) of this section.
(F) All money collected under this section shall be deposited in the state treasury to the credit of the department of insurance's operating fund and shall be used only for the purpose of enforcing this section and sections 1751.69, 3923.84, and 3923.85 of the Revised Code.
Sec. 3923.84.  (A) As used in this section:
(1) "Dangerous drug" has the same meaning as in section 4729.01 of the Revised Code.
(2) "Non-self-injectable medication" means a dangerous drug intended for administration by injection that an individual cannot reasonably self-administer.
(B) No individual or group policy of sickness and accident insurance that is delivered, issued for delivery, or renewed in this state, and no public employee benefit plan that is established or modified in this state, if the policy or plan provides coverage for non-self-injectable medications, medications that must be compounded immediately prior to administration, or both, shall require an insured or plan member to have such a medication delivered directly to the insured or plan member by mail or any means of commercial shipment.
(C) The superintendent of insurance may conduct hearings to determine whether violations of this section have occurred. The hearings shall be conducted in accordance with Chapter 119. of the Revised Code.
(D) If the superintendent, by written order, finds that a person has violated this section, the superintendent may do one or more of the following:
(1) Issue an order requiring the person to cease and desist from engaging in the violation;
(2) Suspend or revoke the person's license to engage in the business of insurance under this chapter;
(3) Order the person neither to employ any individual who is associated with the violation nor permit such an individual to serve as a director, consultant, or in any other capacity for a duration of time the superintendent determines would best serve the public interest.
(E) In addition to the sanctions the superintendent may impose under division (D) of this section, a court may do either or both of the following:
(1) Impose a civil penalty on the person, not to exceed an aggregate amount of thirty-five thousand dollars, for one or more violations of this section that occur in any six-month period;
(2) Impose a civil penalty on the person not to exceed ten thousand dollars for each violation of a cease and desist order described in division (D)(1) of this section.
(F) All money collected under this section shall be deposited in the state treasury to the credit of the department of insurance's operating fund and shall be used only for the purpose of enforcing this section and sections 1751.68, 1751.69, and 3923.85 of the Revised Code.
Sec. 3923.85.  (A) Notwithstanding section 3901.71 of the Revised Code and subject to division (B) of this section, no individual or group policy of sickness and accident insurance that is delivered, issued for delivery, or renewed in this state and no public employee benefit plan that is established or modified in this state shall fail to comply with any of the following:
(1) The policy or plan shall not provide coverage for a prescribed, orally administered cancer medication on a less favorable basis than the coverage it provides for intraveneously administered or injected cancer medications. This includes a prohibition on imposing a coverage limit, copayment, coinsurance, deductible, or other out-of-pocket expense that is greater than any coverage limit, copayment, coinsurance, deductible, or other out-of-pocket expense in the policy or plan that applies to coverage for intraveneously administered or injected cancer medications.
(2) The policy or plan shall not impose a coverage limit, copayment, coinsurance, deductible, or other out-of-pocket expense on a prescribed, orally administered cancer medication or intraveneously administered or injected cancer medication that is greater than the coverage limit, copayment, coinsurance, deductible, or other out-of-pocket expense that applies to the medication on the effective date of this section.
(3) The policy or plan shall not place a prescribed, orally administered cancer medication or intraveneously administered or injected cancer medication in a more expensive price tier than the price tier the medication is in on the effective date of this section.
(4) The policy or plan shall not impose conditions on an insured's or plan member's treatment with prescribed, orally administered cancer medication or intraveneously administered or injected cancer medication that are more restrictive than the conditions that apply to an insured's or plan member's treatment with the medication on the effective date of this section.
(B) The prohibitions in division (A) of this section do not preclude an individual or group policy of sickness and accident insurance or public employee benefit plan from requiring an insured or plan member to obtain prior authorization before orally administered cancer medication is dispensed to the insured or plan member.
(C) The superintendent of insurance may conduct hearings to determine whether violations of this section have occurred. The hearings shall be conducted in accordance with Chapter 119. of the Revised Code.
(D) If the superintendent, by written order, finds that a person has violated this section, the superintendent may do one or more of the following:
(1) Issue an order requiring the person to cease and desist from engaging in the violation;
(2) Suspend or revoke the person's license to engage in the business of insurance under this chapter;
(3) Order the person neither to employ any individual who is associated with the violation nor permit such an individual to serve as a director, consultant, or in any other capacity for a duration of time the superintendent determines would best serve the public interest.
(E) In addition to the sanctions the superintendent may impose under division (D) of this section, a court may do either or both of the following:
(1) Impose a civil penalty on the person, not to exceed an aggregate amount of thirty-five thousand dollars, for one or more violations of this section that occur in any six-month period;
(2) Impose a civil penalty on the person not to exceed ten thousand dollars for each violation of a cease and desist order described in division (D)(1) of this section.
(F) All money collected under this section shall be deposited in the state treasury to the credit of the department of insurance's operating fund and shall be used only for the purpose of enforcing this section and sections 1751.68, 1751.69, and 3923.84 of the Revised Code.
Sec. 4729.43. (A) As used in this section, "non-self-injectable medication" means a dangerous drug intended for administration by injection that an individual cannot reasonably self-administer.
(B) A pharmacist or pharmacy intern who is presented with a prescription for a non-self-injectable medication or a medication that must be compounded immediately prior to administration to the patient shall not, under any circumstances, deliver the medication to the patient's private residence unless the patient's private residence is a nursing home, residential care facility, rehabilitation facility, or similar institutional facility or health care facility; the nursing home or facility consented to the delivery; and the delivery does not violate the nursing home's or facility's policies.
Section 2.  That existing sections 1739.05 and 1751.35 of the Revised Code are hereby repealed.
Section 3. This act shall be known as the "Robert L. Schuler Act" in honor of the late Robert L. Schuler who served in both the Ohio House of Representatives and the Ohio Senate.
Section 4. Sections 1739.05, 1751.68, and 1751.69 of the Revised Code, as amended or enacted by this act, shall apply only to policies, contracts, and agreements that are delivered, issued for delivery, or renewed in this state on or after the effective date of this act, and sections 3923.84 and 3923.85 of the Revised Code, as enacted by this act, shall apply to policies of sickness and accident insurance delivered, issued for delivery, or renewed in this state and public employee benefit plans that are established or modified in this state on or after the effective date of this act.
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