HB2606 Summary - Continuity of Care Act of 2012

• Creates the "Continuity of Care Act of 2012" establishing requirements for health benefit plans that cover prescription drugs and use drug formularies.

• Requires health benefit plan issuers to provide enrollees with plain language notices explaining drug formularies, how drugs are selected, review frequency, and contact methods to determine drug coverage.

• Mandates 120-day advance notice to the Insurance Commissioner, plan sponsors, enrollees, and plan holders before implementing modifications to drug coverage including removal from formulary, prior authorization requirements, quantity limits, step-therapy restrictions, or cost-sharing tier changes.

• Applies only to health benefit plans offered by insurers, HMOs, hospital service corporations, and similar entities; excludes Medicare supplements, workers' compensation, long-term care insurance, and Medicaid managed care programs.

• Effective date: November 1, 2012.