HB1700: relative to abuse-deterrent opioid drug products.

HB 1700-FN - AS INTRODUCED

2016 SESSION

16-2959

01/09

HOUSE BILL 1700-FN

AN ACT relative to abuse-deterrent opioid drug products.

SPONSORS: Rep. Sherman, Rock. 24; Rep. Rosenwald, Hills. 30; Rep. Hinch, Hills. 21; Sen. Bradley, Dist 3

COMMITTEE: Commerce and Consumer Affairs

ANALYSIS

This bill requires insurers to include in their formulary an abuse-deterrent alternative for each opiate on the formulary, where one is available.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

16-2959

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Sixteen

AN ACT relative to abuse-deterrent opioid drug products.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Section; Accident and Health Insurance; Formulary. Amend RSA 400-A by inserting after section 15-a the following new section:

400-A:15-aa Accident and Health Insurance Policies; Formulary. Each insurer issuing or renewing accident and health insurance policies shall include in its formulary an abuse-deterrent alternative for each opiate, where available. This section shall apply to policies issued pursuant to RSA 420-J, RSA 126-A:5, XIX, and RSA 126-A:5, XXIV-XXVI.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO 16-2959

Revised 2/19/16

HB 1700-FN- FISCAL NOTE

AN ACT relative to abuse-deterrent opioid drug products.

FISCAL IMPACT:

The Departments of Health and Human Services and Insurance state this bill, as introduced, may have an indeterminable impact on state, county and local expenditures and state revenue in FY 2016 and each year thereafter. There is no impact on county and local revenue.

METHODOLOGY:

The Department of Health and Human Services states the proposed legislation adds a new section to the insurance statutes to require all insurers to include an abuse-deterrent alternative for each opiate where available. The Department administers the Medicaid program under both fee-for-service and care management models. The Department states the bill would apply to Medicaid Care Management, but would not impact services delivered via fee for service. The Department indicates it is not clear if the abuse-deterrent alternatives to opiate drugs would be subject to prior authorization or what would happen if an insurer considered an opiate drug to be a preferred drug over a non-preferred abuse-deterrent drug. The Department notes there is not an abuse-deterrent alternative for every opiate and there are not a lot of abuse-deterrent formulations currently available. The Department states the fiscal impact of the bill is indeterminable because, while the abuse-deterrent drugs are typically more expensive, it is not known if the Managed Care Organizations will be required to only have an abuse-deterrent alternative available, nor is it known if prior authorization and non-preferred status will be permitted.

The Insurance Department assumes this bill would not impact its administrative budget. The Department states, to the extent insurers do not currently include abuse-deterrent alternatives in their drug formularies, the new requirement could lead to increased claim costs, premiums and would have an indeterminable impact on premium tax revenue. The Department is not able to predict the utilization or cost for these drugs. The Department states the State of New Hampshire self-insures its employee health plan and the bill would not impact the State plan. The Department states this bill may have an indeterminable impact on county and local expenditures.