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 health care treatments. The study will specifically examine the feasibility of establishing 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 implications of prior authorizations and ensure that health carriers are held accountable for their practices in denying treatment based on these authorizations.