Electronic Authorization for Prescription Drugs

On April 13, 2017, Gov. Holcomb signed SB 73, creating Public Law 45-2017, which requires a health insurance policy and a health maintenance organization contract to accept and respond to electronic prior authorization requests according to a particular electronic transaction standard.

As background, electronic prior authorization is the transmission of information between the prescriber and payer to determine whether or not the prior authorization is granted. This process improves the covered individual’s ability to obtain needed medications and provides an effective line of communication between prescribing health care providers, dispensing pharmacist and health plans.

Although this new law is aimed at insurers, it is important for employers to be aware of what insurers may be doing and what they are now required to do when issuing policies.

This law is effective Jan. 1, 2018.

Public Law 45-2017 »