The proposed bill, General Assembly Proposed Bill No. 6817, mandates the Insurance Department to conduct a study on the use of prior authorizations by health carriers in denying medically necessary healthcare treatments. The study will specifically examine the feasibility of implementing a limited formulary of prescription drugs or medical services that would require prior authorization from health carriers. Additionally, the bill will explore potential penalties for any violations of this formulary.

This legislation aims to address concerns regarding the prior authorization process, which can impact patient access to necessary medical care. By requiring a comprehensive study, the bill seeks to evaluate the current practices of health carriers and consider regulatory measures that could enhance the efficiency and fairness of the prior authorization system.