Senate Bill No. 56–Committee on Commerce and Labor
Prefiled January 29, 1999
____________
Referred to Committee on Commerce and Labor
SUMMARY—Requires certain policies of health insurance that provide coverage for drugs approved by Food and Drug Administration for use in treatment of medical condition to include coverage for certain other uses of those drugs. (BDR 57-988)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.
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EXPLANATION – Matter in
bolded italics is new; matter between brackets
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1
Section 1. Chapter 689A of NRS is hereby amended by adding thereto1-2
a new section to read as follows:1-3
1. No policy of health insurance that provides coverage for a drug1-4
approved by the Food and Drug Administration for use in the treatment1-5
of an illness, disease or other medical condition may be delivered or1-6
issued for delivery in this state unless the policy includes coverage for1-7
any other use of the drug for the treatment of cancer, if that use is:1-8
(a) Specified in the most recent edition of or supplement to:1-9
(1) The United States Pharmacopoeia Drug Information; or1-10
(2) The American Hospital Formulary Service Drug Information;1-11
or1-12
(b) Supported by at least two articles reporting the results of scientific1-13
studies that are published in scientific or medical journals, as defined in1-14
21 C.F.R. § 99.3.1-15
2. The coverage required pursuant to this section:2-1
(a) Includes coverage for any medical services necessary to administer2-2
the drug to the insured.2-3
(b) Does not include coverage for any:2-4
(1) Experimental drug used for the treatment of cancer, if that drug2-5
has not been approved by the Food and Drug Administration; or2-6
(2) Use of a drug that is contraindicated by the Food and Drug2-7
Administration.2-8
3. A policy of health insurance subject to the provisions of this2-9
chapter that is delivered, issued for delivery or renewed on or after2-10
October 1, 1999, has the legal effect of including the coverage required2-11
by this section, and any provision of the policy that conflicts with the2-12
provisions of this section is void. Sec. 2. NRS 689A.330 is hereby amended to read as follows: 689A.330 If any policy is issued by a domestic insurer for delivery to a2-15
person residing in another state, and if the insurance commissioner or2-16
corresponding public officer of that other state has informed the2-17
commissioner that the policy is not subject to approval or disapproval by2-18
that officer, the commissioner may by ruling require that the policy meet2-19
the standards set forth in NRS 689A.030 to 689A.320, inclusive2-20
section 1 of this act.2-21
Sec. 3. Chapter 689B of NRS is hereby amended by adding thereto a2-22
new section to read as follows:2-23
1. No group policy of health insurance that provides coverage for a2-24
drug approved by the Food and Drug Administration for use in the2-25
treatment of an illness, disease or other medical condition may be2-26
delivered or issued for delivery in this state unless the policy includes2-27
coverage for any other use of the drug for the treatment of cancer, if that2-28
use is:2-29
(a) Specified in the most recent edition of or supplement to:2-30
(1) The United States Pharmacopoeia Drug Information; or2-31
(2) The American Hospital Formulary Service Drug Information;2-32
or2-33
(b) Supported by at least two articles reporting the results of scientific2-34
studies that are published in scientific or medical journals, as defined in2-35
21 C.F.R. § 99.3.2-36
2. The coverage required pursuant to this section:2-37
(a) Includes coverage for any medical services necessary to administer2-38
the drug to the employee or member of the insured group.2-39
(b) Does not include coverage for any:2-40
(1) Experimental drug used for the treatment of cancer, if that drug2-41
has not been approved by the Food and Drug Administration; or2-42
(2) Use of a drug that is contraindicated by the Food and Drug2-43
Administration.3-1
3. A policy subject to the provisions of this chapter that is delivered,3-2
issued for delivery or renewed on or after October 1, 1999, has the legal3-3
effect of including the coverage required by this section, and any3-4
provision of the policy that conflicts with the provisions of this section is3-5
void.3-6
Sec. 4. Chapter 695B of NRS is hereby amended by adding thereto a3-7
new section to read as follows:3-8
1. No contract for hospital or medical services that provides coverage3-9
for a drug approved by the Food and Drug Administration for use in the3-10
treatment of an illness, disease or other medical condition may be3-11
delivered or issued for delivery in this state unless the contract includes3-12
coverage for any other use of the drug for the treatment of cancer, if that3-13
use is:3-14
(a) Specified in the most recent edition of or supplement to:3-15
(1) The United States Pharmacopoeia Drug Information; or3-16
(2) The American Hospital Formulary Service Drug Information;3-17
or3-18
(b) Supported by at least two articles reporting the results of scientific3-19
studies that are published in scientific or medical journals, as defined in3-20
21 C.F.R. § 99.3.3-21
2. The coverage required pursuant to this section:3-22
(a) Includes coverage for any medical services necessary to administer3-23
the drug to a person covered under the contract.3-24
(b) Does not include coverage for any:3-25
(1) Experimental drug used for the treatment of cancer, if that drug3-26
has not been approved by the Food and Drug Administration; or3-27
(2) Use of a drug that is contraindicated by the Food and Drug3-28
Administration.3-29
3. A contract for hospital or medical services subject to the3-30
provisions of this chapter that is delivered, issued for delivery or renewed3-31
on or after October 1, 1999, has the legal effect of including the coverage3-32
required by this section, and any provision of the contract that conflicts3-33
with the provisions of this section is void.3-34
Sec. 5. Chapter 695C of NRS is hereby amended by adding thereto a3-35
new section to read as follows:3-36
1. No evidence of coverage that provides coverage for a drug3-37
approved by the Food and Drug Administration for use in the treatment3-38
of an illness, disease or other medical condition may be delivered or3-39
issued for delivery in this state unless the evidence of coverage includes3-40
coverage for any other use of the drug for the treatment of cancer, if that3-41
use is:3-42
(a) Specified in the most recent edition of or supplement to:3-43
(1) The United States Pharmacopoeia Drug Information; or4-1
(2) The American Hospital Formulary Service Drug Information;4-2
or4-3
(b) Supported by at least two articles reporting the results of scientific4-4
studies that are published in scientific or medical journals, as defined in4-5
21 C.F.R. § 99.3.4-6
2. The coverage required pursuant to this section:4-7
(a) Includes coverage for any medical services necessary to administer4-8
the drug to the enrollee.4-9
(b) Does not include coverage for any:4-10
(1) Experimental drug used for the treatment of cancer, if that drug4-11
has not been approved by the Food and Drug Administration; or4-12
(2) Use of a drug that is contraindicated by the Food and Drug4-13
Administration.4-14
3. Any evidence of coverage subject to the provisions of this chapter4-15
that is delivered, issued for delivery or renewed on or after October 1,4-16
1999, has the legal effect of including the coverage required by this4-17
section, and any provision of the evidence of coverage that conflicts with4-18
the provisions of this section is void.4-19
Sec. 6. NRS 695C.330 is hereby amended to read as follows: 695C.330 1. The commissioner may suspend or revoke any4-21
certificate of authority issued to a health maintenance organization pursuant4-22
to the provisions of this chapter if he finds that any of the following4-23
conditions exist:4-24
(a) The health maintenance organization is operating significantly in4-25
contravention of its basic organizational document, its health care plan or in4-26
a manner contrary to that described in and reasonably inferred from any4-27
other information submitted pursuant to NRS 695C.060, 695C.070 and4-28
695C.140, unless any amendments to those submissions have been filed4-29
with and approved by the commissioner;4-30
(b) The health maintenance organization issues evidence of coverage or4-31
uses a schedule of charges for health care services which do not comply4-32
with the requirements of NRS 695C.170 to 695C.200, inclusive, and4-33
section 5 of this act, or 695C.207;4-34
(c) The health care plan does not furnish comprehensive health care4-35
services as provided for in NRS 695C.060;4-36
(d) The state board of health certifies to the commissioner that4-37
4-38
(1) Does not meet the requirements of subsection 2 of NRS4-39
695C.080; or4-40
(2)4-41
obligations to furnish health care services as required under its health care4-42
plan;5-1
(e) The health maintenance organization is no longer financially5-2
responsible and may reasonably be expected to be unable to meet its5-3
obligations to enrollees or prospective enrollees;5-4
(f) The health maintenance organization has failed to put into effect a5-5
mechanism affording the enrollees an opportunity to participate in matters5-6
relating to the content of programs pursuant to NRS 695C.110;5-7
(g) The health maintenance organization has failed to put into effect the5-8
system for complaints required by NRS 695C.260 in a manner reasonably5-9
to dispose of valid complaints;5-10
(h) The health maintenance organization or any person on its behalf has5-11
advertised or merchandised its services in an untrue, misrepresentative,5-12
misleading, deceptive or unfair manner;5-13
(i) The continued operation of the health maintenance organization5-14
would be hazardous to its enrollees; or5-15
(j) The health maintenance organization has otherwise failed to comply5-16
substantially with the provisions of this chapter.5-17
2. A certificate of authority must be suspended or revoked only after5-18
compliance with the requirements of NRS 695C.340.5-19
3. If the certificate of authority of a health maintenance organization is5-20
suspended, the health maintenance organization shall not, during the period5-21
of that suspension, enroll any additional groups or new individual contracts,5-22
unless those groups or persons were contracted for before the date of5-23
suspension.5-24
4. If the certificate of authority of a health maintenance organization is5-25
revoked, the organization shall proceed, immediately following the5-26
effective date of the order of revocation, to wind up its affairs and shall5-27
conduct no further business except as may be essential to the orderly5-28
conclusion of the affairs of the organization. It shall engage in no further5-29
advertising or solicitation of any kind. The commissioner may by written5-30
order permit such further operation of the organization as he may find to be5-31
in the best interest of enrollees to the end that enrollees are afforded the5-32
greatest practical opportunity to obtain continuing coverage for health care.5-33
Sec. 7. The amendatory provisions of this act do not apply to offenses5-34
that are committed before October 1, 1999.~