This bill aims to revise health utilization review laws in Montana by introducing several key provisions. It mandates that health insurance issuers must honor prior authorizations for at least 90 days when enrollees switch health plans, ensuring continuity of care. Additionally, it prohibits prior authorization requirements for prescriptions written at discharge from inpatient care, provided the medication cost does not exceed $5,000 per day. The bill also establishes that once prior authorization is granted for a covered service, it cannot be retroactively denied, except in cases of fraud or misrepresentation.

Furthermore, the bill outlines requirements for health insurance issuers to accept and respond to prior authorization requests electronically, using a secure transmission method. It specifies that if a prior authorization request for a prescription drug is submitted electronically, it must be processed using the national council for prescription drug program's standard. The bill includes provisions for coordination with other legislation and sets an applicability date for policies issued or renewed after the effective date of the act. Notably, the bill deletes the term "SCRIPT" from the electronic prior authorization transaction standards.