Reprinted

February 21, 2001





SENATE BILL No. 231

_____


DIGEST OF SB 231 (Updated February 20, 2001 3:07 PM - DI 104)



Citations Affected: IC 25-26; IC 27-8.

Synopsis: Mail order and Internet pharmacy designation. Allows insurers to designate a mail order or Internet pharmacy to provide prescription drugs to an insured. Prohibits an insurer from requiring as a condition of coverage that an insured purchase prescription drugs from a designated mail order or Internet pharmacy. Prohibits an insurer from applying a higher co-payment or deductible if an insured does not purchase prescription drugs from an in-network designated mail order or Internet pharmacy.

Effective: July 1, 2001; July 1, 2002.





Gard, Simpson, Sipes, Alting




    January 9, 2001, read first time and referred to Committee on Health and Provider Services.
    February 15, 2001, reported favorably _ Do Pass.
    February 20, 2001, read second time, amended, ordered engrossed.







Reprinted

February 21, 2001

First Regular Session 112th General Assembly (2001)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2000 General Assembly.

SENATE BILL No. 231



    A BILL FOR AN ACT to amend the Indiana Code concerning insurance.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 25-26-18-3 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2002]: Sec. 3. A mail order or Internet based pharmacy shall employ a pharmacist licensed in Indiana who shall be responsible for the dispensing of all prescription drugs into the state of Indiana by the company.
    SECTION 2. IC 27-8-28 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2001]:
     Chapter 28. Insurer Designation of Mail Order and Internet Pharmacies
    Sec. 1. This chapter applies to every:
        (1) policy of accident and sickness insurance (as defined in IC 27-8-5-1 ), whether written on an individual basis, a group basis, a franchise basis, or a blanket basis;
        (2) group contract (as defined in IC 27-13-1-16 ) or individual contract (as defined in IC 27-13-1-21 ) through which a health

maintenance organization furnishes health care services; and
        (3) health care plan of a state or local governmental entity that provides coverage for health care services on a self-insurance basis;
that is issued, delivered, executed, or renewed in Indiana on or after July 1, 2001.
    Sec. 2. As used in this chapter, "insurer" means a company, a firm, a partnership, an entity, an association, an order, a society, or a system:
        (1) making any of the kinds of insurance;
        (2) entering into any of the kinds of contracts; or
        (3) providing any of the coverage;
described in section 1 of this chapter.
    Sec. 3. As used in this chapter, "insured" means an individual who is entitled to coverage under a policy, contract, or plan described in section 1 of this chapter.
    Sec. 4. As used in this chapter, "mail order or Internet based pharmacy" has the meaning set forth in IC 25-26-18-1.
    Sec. 5. (a) An insurer that provides coverage for prescription drugs may designate a mail order or Internet based pharmacy to provide prescription drugs to an insured.
    (b) An insurer may not:
        (1) require an insured to obtain prescription drugs from a pharmacy designated under subsection (a) as a condition of coverage; or
        (2) impose:
            (A) a higher co-payment;
            (B) a higher deductible; or
            (C) another co-insurance requirement;
        upon an insured if the insured obtains prescription drugs from an in-network pharmacy not designated in subsection (a) that agrees to provide all pharmaceutical services for the same price and under the terms and conditions that apply to a pharmacy designated in subsection (a).