The bill amends RSA 420-J to limit prior authorization requirements for physical therapy and occupational therapy services. Specifically, it prohibits health carriers from requiring prior authorization for the first visit of each new episode of care, defined as treatment for a new condition or a recurring condition not treated within the previous 60 days. Additionally, health carriers must approve at least eight medically necessary treatments following the initial evaluation before requiring further review. However, the bill maintains the right of health carriers to deny claims if the services rendered are deemed not medically necessary.

The effective date for this act is set for January 1, 2027. The fiscal impact is expected to be indeterminable, with potential increases in state revenue from insurance premium taxes estimated between $250,000 and $1,250,000 annually due to increased claims costs associated with the removal of prior authorization for these services. The bill does not specify any changes to expenditures or appropriations, indicating that the financial implications primarily revolve around potential revenue increases from higher insurance premiums.