A 4063: Provides that the failure by the utilization review agent to make a determination within certain time periods shall be deemed to be an approval of the health care services.
The proposed law aims to simplify the process of health care services approval and override determinations. Under the current system, a utilization review agent's failure to make a determination within the prescribed time period is deemed an approval of the health care services. However, this law proposes to change this to a deemed approval, meaning that if the agent fails to make a determination within the time period, the health care services are approved, and the failure to meet the time period for a step therapy protocol is deemed an override of the protocol. This change applies to both the public health law and the insurance law. The law also clarifies that a utilization review agent's failure to comply with step therapy protocol requirements is a basis for granting an override of the protocol, absent fraud.
| Jan. 07, 2026 | referred to insurance |
| Jan. 31, 2025 | referred to insurance |
STATE OF NEW YORK ________________________________________________________________________ 4063 2025-2026 Regular Sessions IN ASSEMBLY January 31, 2025 ___________ Introduced by M. of A. WEPRIN -- read once and referred to the Committee on Insurance AN ACT to amend the public health law and the insurance law, in relation to providing that the failure by the utilization review agent to make a determination within certain time periods shall be deemed to be an approval of the health care services The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 7 of section 4903 of the public health law, as 2 amended by chapter 641 of the laws of 2024, is amended to read as 3 follows: 4 7. Failure by the utilization review agent to make a determination 5 within the time periods prescribed in this section shall be deemed to be 6 an [adverse determination subject to appeal pursuant to section forty-7nine hundred four of this title, provided, however, that] approval of 8 the health care services in question and failure to meet such time peri- 9 ods for a step therapy protocol as defined in subdivision seven-f-three 10 of section forty-nine hundred of this title or a step therapy protocol 11 override determination pursuant to subdivisions three-a, three-b and 12 three-c of this section shall be deemed to be an override of the step 13 therapy protocol. A utilization review agent's failure to comply with 14 any of the step therapy protocol requirements required in subdivisions 15 five and six of section forty-nine hundred two of this title shall be 16 considered a basis for granting an override of the step therapy proto- 17 col, absent fraud. 18 § 2. Subsection (g) of section 4903 of the insurance law, as amended 19 by chapter 641 of the laws of 2024, is amended to read as follows: 20 (g) Failure by the utilization review agent to make a determination 21 within the time periods prescribed in this section shall be deemed to be 22 an [adverse determination subject to appeal pursuant to section four23thousand nine hundred four of this title, provided, however,] approval EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08002-01-5A. 4063 2 1 of the health care services in question and that failure to meet such 2 time periods for a step therapy protocol as defined in subsection (g-9) 3 of section forty-nine hundred of this title or a step therapy protocol 4 override determination pursuant to subsections (c-1), (c-2) and (c-3) of 5 this section shall be deemed to be an override of the step therapy 6 protocol. A utilization review agent's failure to comply with any of the 7 step therapy protocol requirements required in [subsections] paragraphs 8 fifteen and sixteen of subsection (a) of section four thousand nine 9 hundred two of this title shall be considered a basis for granting an 10 override of the step therapy protocol, absent fraud. 11 § 3. This act shall take effect on the same date and in the same 12 manner as section 4 of chapter 641 of the laws of 2024, takes effect; 13 provided, however, that section two of this act shall take effect on the 14 same date and in the same manner as section 2 of chapter 641 of the laws 15 of 2024, takes effect.