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.

The intent of the bill is to address concerns regarding the prior authorization process, which can impact patient access to necessary medical care. By requiring this study, the bill aims to gather data and insights that could lead to more effective regulations surrounding prior authorizations, ultimately improving healthcare delivery and patient outcomes.