AZ SB1401

Amends Arizona health insurance laws to prohibit reclassification of biologics and plasma-derived prescription drugs to higher cost tiers during the policy term, with 60 days' notice required for any tier changes in subsequent terms.

Requires prescription drug out-of-pocket costs (deductibles, copayments, coinsurance) to be applied toward the annual out-of-pocket maximum for hospital and medical coverage plans.

Applies to multiple insurance types including health care corporations, health care services organizations, disability insurers, group disability insurers, and blanket disability insurers.

Establishes maximum annual out-of-pocket expense limits for prescription drugs, though specific dollar amounts are left blank in the bill text requiring legislative determination.

Amends existing formulary provisions to clarify that prescription drug cost-sharing applies toward annual out-of-pocket maximums in health insurance plans.