Bill Text For SB1646 - Introduced

 1|                          STATE OF OKLAHOMA                            |
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 2|             2nd Session of the 60th Legislature (2026)                |
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 3|SENATE BILL 1646                     By: Gollihare                     |
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 6|                            AS INTRODUCED                              |
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 7|       An Act relating to health insurance; defining terms;            |
  |       requiring health benefit plan to provide coverage for           |
 8|       medically necessary treatment of mental health and              |
  |       substance use disorders; prohibiting certain                    |
 9|       limitations on benefits or coverage; prohibiting                |
  |       certain rescission or modification of authorization;            |
10|       requiring compliance with certain out-of-network care           |
  |       requirements under certain conditions; requiring                |
11|       provision of meaningful benefits under specified                |
  |       conditions; specifying procedures and minimum                   |
12|       criteria for certain determination; establishing                |
  |       requirements and procedures related to utilization              |
13|       review; requiring and prohibiting application of                |
  |       certain criteria; specifying requirements for certain           |
14|       authorizations; prohibiting adoption of certain                 |
  |       policy terms; authorizing promulgation of certain               |
15|       rules; authorizing certain enforcement by the                   |
  |       Insurance Commissioner; specifying applicability of             |
16|       act; providing certain construction; providing for              |
  |       codification; and providing an effective date.                  |
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19|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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20|    SECTION 1.     NEW LAW     A new section of law to be codified     |
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21|in the Oklahoma Statutes as Section 6060.11c of Title 36, unless       |
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22|there is created a duplication in numbering, reads as follows:         |
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23|    A.  As used in this section:                                       |
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   Req. No. 2893                                                   Page 1
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 1|    1.  A "core treatment" for a condition or disorder is a standard   |
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 2|treatment or course of treatment, therapy, service, or intervention    |
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 3|indicated by generally accepted standards of mental health and         |
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 4|substance use disorder care;                                           |
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 5|    2.  "Generally accepted standards of mental health and substance   |
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 6|use disorder care" means standards of care and clinical practice       |
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 7|that are generally recognized by health care providers practicing in   |
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 8|relevant clinical specialties such as psychiatry, psychology,          |
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 9|addiction medicine and counseling, and behavioral health treatment.    |
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10|Valid, evidence-based sources reflecting generally accepted            |
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11|standards of mental health and substance use disorder care include     |
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12|published peer-reviewed scientific studies and medical literature      |
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13|and recommendations of nonprofit health care provider professional     |
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14|associations including, but not limited to, patient placement          |
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15|criteria and clinical practice guidelines;                             |
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16|    3.  "Health benefit plan" has the same meaning as provided in      |
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17|Section 6060.4 of Title 36 of the Oklahoma Statutes;                   |
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18|    4.  "Medically necessary treatment of a mental health or           |
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19|substance use disorder" means a service or product addressing the      |
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20|specific needs of that patient, for the purpose of screening,          |
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21|preventing, diagnosing, managing, or treating an illness, injury,      |
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22|condition, or its symptoms, including minimizing the progression of    |
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23|an illness, injury, condition, or its symptoms, in a manner that is    |
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24|all of the following:                                                  |
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   Req. No. 2893                                                   Page 2
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 1|         a.    in accordance with the generally accepted standards     |
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 2|              of mental health and substance use disorder care,        |
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 3|         b.    clinically appropriate in terms of type, frequency,     |
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 4|              extent, site, and duration, and                          |
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 5|         c.    not primarily for the economic benefit of the health    |
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 6|              benefit plan or purchaser or for the convenience of      |
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 7|              the patient, treating physician, or other health care    |
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 8|              provider;                                                |
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 9|    5.  "Mental health and substance use disorder" means a mental      |
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10|health condition or substance use disorder that falls under any of     |
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11|the diagnostic categories listed in the mental and behavioral          |
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12|disorders chapter of the most recent edition of the International      |
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13|Statistical Classification of Diseases and Related Health Problems,    |
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14|or that is listed in the most recent version of the American           |
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15|Psychiatric Association's Diagnostic and Statistical Manual of         |
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16|Mental Disorders or the Diagnostic Classification of Mental Health     |
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17|and Developmental Disorders of Infancy and Early Childhood.  Changes   |
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18|in terminology, organization, or classification of mental health and   |
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19|substance use disorders in future versions of the American             |
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20|Psychiatric Association's Diagnostic and Statistical Manual of         |
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21|Mental Disorders or the International Statistical Classification of    |
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22|Diseases and Related Health Problems shall not affect the conditions   |
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23|covered by this section as long as a condition is commonly             |
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   Req. No. 2893                                                   Page 3
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 1|understood to be a mental health or substance use disorder by health   |
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 2|care providers practicing in relevant clinical specialties;            |
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 3|    6.  "Nonprofit health care provider professional association"      |
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 4|means a not-for-profit health care provider professional association   |
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 5|or specialty society that is generally recognized by clinicians        |
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 6|practicing in the relevant clinical specialty and that issues          |
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 7|peer-reviewed guidelines, criteria, or other clinical                  |
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 8|recommendations developed through a transparent process;               |
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 9|    7.  "Utilization review" means prospectively, retrospectively,     |
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10|or concurrently reviewing and approving, modifying, delaying, or       |
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11|denying, based in whole or in part on medical necessity, requests by   |
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12|health care providers, insureds, or their authorized representatives   |
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13|for coverage of health care services prior to, retrospectively, or     |
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14|concurrent with the provision of health care services to insureds,     |
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15|or for out-of-network services required pursuant to 6060.11a of        |
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16|Title 36 of the Oklahoma Statutes; and                                 |
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17|    8.  "Utilization review criteria" means any criteria, standards,   |
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18|protocols, or guidelines used by a health benefit plan, or any         |
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19|entity acting on the health benefit plan's behalf, to conduct          |
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20|utilization review.                                                    |
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21|    B.  1.  Every health benefit plan issued, amended, or renewed in   |
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22|this state that provides hospital, medical, or surgical coverage       |
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23|shall provide coverage for medically necessary treatment of mental     |
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24|health and substance use disorders including services that are         |
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   Req. No. 2893                                                   Page 4
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 1|consistent with criteria, guidelines, or consensus recommendations     |
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 2|from nationally recognized not-for-profit clinical specialty           |
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 3|associations of the relevant behavioral, mental health, or substance   |
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 4|use disorder specialty.                                                |
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 5|    2.  A health benefit plan shall not limit benefits or coverage     |
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 6|for chronic or pervasive mental health and substance use disorders     |
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 7|to short-term or acute treatment at any level of care placement.       |
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 8|    3.  All utilization review concerning service intensity, level     |
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 9|of care placement, continued stay, and transfer or discharge of        |
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10|insureds diagnosed with mental health and substance use disorders      |
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11|shall be conducted in accordance with the requirements of subsection   |
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12|C of this section.                                                     |
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13|    4.  A health benefit plan that authorizes a specific type of       |
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14|treatment by a provider pursuant to this section shall not rescind     |
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15|or modify the authorization or payment after the provider renders      |
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16|the health care service in good faith and pursuant to the              |
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17|authorization for any reason, including, but not limited to, the       |
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18|health benefit plan's subsequent rescission, cancellation, or          |
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19|modification of the insured's or policyholder's contract, or the       |
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20|health benefit plan's subsequent determination that it did not make    |
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21|an accurate determination of the insured's or policyholder's           |
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22|eligibility.                                                           |
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23|    5.  If services for the medically necessary treatment of a         |
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24|mental health or substance use disorder are not available              |
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   Req. No. 2893                                                   Page 5
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 1|in-network, the health benefit plan shall comply with the              |
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 2|out-of-network care requirements provided by Section 6060.11a of       |
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 3|Title 36 of the Oklahoma Statutes.                                     |
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 4|    6.  If a health benefit plan provides any benefits for a mental    |
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 5|health or substance use disorder in any classification of benefits,    |
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 6|it shall provide meaningful benefits for that mental health or         |
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 7|substance use disorder in every classification in which medical or     |
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 8|surgical benefits are provided in accordance with 45 C.F.R., Section   |
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 9|146.136.  For purposes of this paragraph, whether the benefits         |
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10|provided are meaningful benefits shall be determined in comparison     |
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11|to the benefits provided for medical conditions and surgical           |
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12|procedures in the classification.  At a minimum, the health benefit    |
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13|plan shall provide coverage of benefits for that condition or          |
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14|disorder in each classification in which the health benefit plan       |
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15|provides benefits for one or more medical conditions or surgical       |
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16|procedures.  The health benefit plan shall not be deemed to provide    |
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17|meaningful benefits unless it provides benefits for a core treatment   |
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18|for that condition or disorder in each classification in which the     |
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19|health benefit plan provides benefits for a core treatment for one     |
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20|or more medical conditions or surgical procedures.  If there is no     |
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21|core treatment for a covered mental health condition or substance      |
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22|use disorder with respect to a classification, the health benefit      |
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23|plan is not required to provide benefits for a core treatment for      |
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24|such condition or disorder in that classification, but shall provide   |
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   Req. No. 2893                                                   Page 6
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 1|benefits for such condition or disorder in every classification in     |
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 2|which medical or surgical benefits are provided.                       |
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 3|    C.  1.  In conducting utilization review, a health benefit plan    |
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 4|that provides hospital, medical, or surgical coverage, or an entity    |
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 5|acting on the health benefit plan's behalf, shall not deviate from,    |
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 6|or apply criteria that deviates from, current generally accepted       |
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 7|standards of mental health and substance use disorder care as          |
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 8|defined in subsection A of this section.  All denials and appeals      |
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 9|shall be reviewed by a professional with the same level of education   |
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10|and experience as the provider requesting coverage.                    |
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11|    2.  In conducting utilization review of all covered health care    |
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12|services and benefits for the screening, diagnosis, prevention, and    |
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13|treatment of mental health and substance use disorders in children,    |
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14|adolescents, and adults, a health benefit plan shall apply the         |
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15|relevant level of care placement criteria and practice guidelines      |
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16|set forth in the most recent versions of such criteria and practice    |
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17|guidelines, developed by the nonprofit health care provider            |
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18|professional association for the relevant clinical specialty.          |
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19|    3.  In conducting utilization review relating to service           |
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20|intensity or level of care placement, continued stay, transfer or      |
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21|discharge, or any other patient care decisions that are within the     |
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22|scope of the sources specified in subsection B of this section, a      |
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23|health benefit plan shall not apply different, additional,             |
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24|conflicting, or more restrictive utilization review criteria than      |
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   Req. No. 2893                                                   Page 7
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 1|the criteria and guidelines set forth in those sources.  For all       |
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 2|service intensity or level of care placement, continued stay, or       |
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 3|transfer or discharge decisions, the health benefit plan shall         |
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 4|authorize placement at the level of care consistent with the           |
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 5|insured's score using the relevant level of care placement criteria    |
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 6|and guidelines as specified in subsection B of this section.  If       |
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 7|that level of placement is not available, the health benefit plan      |
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 8|shall authorize the next highest level of care.  If the health         |
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 9|benefit plan's application of the relevant age-appropriate criteria    |
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10|is not consistent with the service intensity or level of care          |
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11|placement requested by the covered person or his or her provider,      |
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12|any adverse benefit determination notice shall include full details    |
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13|of the health benefit plan's assessment under the relevant criteria    |
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14|to the provider and the covered person.                                |
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15|    D.  A health benefit plan shall not adopt, impose, or enforce      |
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16|terms in its policies or provider agreements, in writing or in         |
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17|operation, that undermine, alter, or conflict with the requirements    |
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18|of this section.                                                       |
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19|    E.  1.  The Insurance Commissioner may promulgate rules to         |
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20|implement and enforce the provisions of this section including, but    |
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21|not limited to, rules to:                                              |
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22|         a.    address health benefit plan utilization review          |
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23|              compliance in accordance with subsection C of this       |
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24|              section,                                                 |
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   Req. No. 2893                                                   Page 8
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 1|         b.    specify data testing requirements to determine plan     |
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 2|              design and application of parity compliance for          |
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 3|              nonquantitative treatment limitations using outcomes     |
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 4|              data, and                                                |
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 5|         c.    set standard definitions for coverage requirements,     |
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 6|              including processes, strategies, evidentiary             |
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 7|              standards, and other factors.                            |
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 8|    2.  If the Commissioner determines that a health benefit plan      |
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 9|has violated this section, the Commissioner may, after appropriate     |
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10|notice and opportunity for hearing by order, assess a civil penalty    |
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11|not to exceed Five Thousand Dollars ($5,000.00) for each violation     |
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12|or, if a violation was willful, a civil penalty not to exceed Ten      |
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13|Thousand Dollars ($10,000.00) for each violation.  The civil           |
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14|penalties authorized under this paragraph are not exclusive and may    |
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15|be sought and employed in combination with any other remedies          |
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16|available to the Commissioner under the Oklahoma Insurance Code.       |
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17|    F.  1.  This section applies to:                                   |
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18|         a.    all health care services and benefits for the           |
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19|              screening, diagnosis, prevention, and treatment of       |
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20|              mental health and substance use disorders covered by     |
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21|              an insurance policy, and                                 |
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22|         b.    a health benefit plan that covers hospital, medical,    |
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23|              or surgical expenses and conducts utilization review     |
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24|              as defined in this section, and any entity or            |
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   Req. No. 2893                                                   Page 9
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 1|              contracting provider that performs utilization review    |
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 2|              or utilization management functions on a health          |
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 3|              benefit plan's behalf.                                   |
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 4|    2.  This section applies only to covered benefits.  Nothing in     |
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 5|this section shall be construed to expand or alter the benefits        |
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 6|available to the insured or policyholder under an insurance policy.    |
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 7|    3.  Nothing in this section shall be construed to supersede,       |
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 8|limit, or otherwise affect the provisions of Section 2607.1 of Title   |
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 9|63 of the Oklahoma Statutes.                                           |
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10|    SECTION 2.  This act shall become effective January 1, 2027.       |
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12|    60-2-2893      DC        1/14/2026 6:43:58 AM                      |
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   Req. No. 2893                                                   Page 10
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