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Oklahoma Legislature· HB 4462Second Reading referred to Rules

An act relating to health insurance, the official text

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1                   STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 4462   By: Newton

4

5

6                   AS INTRODUCED

7   An Act relating to health insurance; providing

    definitions; establishing that non-urgent care prior

8   authorization requests shall be deemed approved if

    the utilization review organization fails to take

9   certain action; granting the utilization review

    organization additional time for decision if network

10  provider is requested to provide additional

    information; providing requirements for additional

11  information requests; requiring network provider to

    submit new prior authorization request if they fail

12  to provide all clinical information; requiring

    network providers to submit non-urgent care requests

13  at least six days before scheduled health care

    service; establishing that urgent care prior

14  authorization requests shall be deemed approved if

    the utilization review organization fails to take

15  certain action; requiring network provider to submit

    additional information within twenty four hours of

16  receiving request; directing utilization review

    organizations to ensure requests for prior

17  authorization are made by physician or other

    competent health care professional; requiring

18  utilization review organizations to include certain

    information with notice of adverse determination;

19  requiring utilization review organizations to ensure

    adverse determinations are made by qualified

20  physicians; directing utilization review

    organizations to make appeals process readily

21  accessible on website; requiring response to appeals

    within certain timeframe; requiring appeals to be

22  decided by physician other than physician who made

    original adverse determination; directing insurers to

23  exempt certain network providers from obtaining prior

    authorization for covered health care services;

24  clarifying that exemption shall be effective for

    Req. No. 14146                                         Page 1
1   succeeding year upon determination by utilization

    review organization; permitting insurers to rescind

2   exemption for certain actions by health care

    professional; permitting insurers to automatically

3   renew exemption if certain conditions are met;

    directing insurers to make written notice of a

4   decision granting or declining renewal of an

    exemption; providing required contents for notice of

5   rescission or declination of exemption; requiring

    insurer afford a health care professional reasonable

6   opportunity to challenge grounds for a decision;

    directing for reconsideration to be performed by

7   qualified physician; clarifying decision on

    reconsideration is final; requiring information be

8   held in strictest confidence; clarifying health care

    professional whose exemption was rescinded or not

9   renewed for certain reasons remains automatically

    eligible for an exemption; establishing that these

10  exemptions do not apply to experimental health care

    services; granting the Oklahoma Insurance

11  Commissioner rule making authority; providing for

    codification; and providing an effective date.

12

13

14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

15  SECTION 1.      NEW LAW  A new section of law to be codified

16 in the Oklahoma Statutes as Section 6567.1 of Title 36, unless there

17 is created a duplication in numbering, reads as follows:

18  As used in this act:

19  1. "Additional business day" means the first weekday not

20 designated as a state or federal holiday;

21  2. "Adverse determination" means a determination by a

22 utilization review organization that a request for coverage of a

23 benefit under a health benefit plan does not meet the insurer's

24 policies or guidelines for medical necessity or appropriateness,

    Req. No. 14146                                            Page 2
1 including treatment setting, level of care, or effectiveness. The

2 term includes a denial, reduction, termination, or modification of

3 the benefit requested or payment therefor;

4   3. "Artificial intelligence" means a machine-based system that

5 may include software or physical hardware that performs tasks, based

6 upon data set inputs, which requires human-like perception,

7 cognition, planning, learning, communication, or physical action and

8 which is capable of improving performance based upon learned

9 experience without significant human oversight toward influencing

10 real or virtual environments;

11  4. "Enrollee" means an individual who contracts for,

12 subscribes, or participates as a dependent under a health benefit

13 plan;

14  5. "Health benefit plan" means:

15        a. any plan, policy, or contract issued, delivered, or

16        renewed in this state that provides medical benefits

17        that include payment or reimbursement for

18        hospitalization, physician care, treatment, surgery,

19        therapy, drugs, equipment, and other medical expenses,

20        regardless of whether the plan is for a group or an

21        individual, and

22        b. the term does not include accident-only, specified

23        disease, individual hospital indemnity, credit,

24        dental-only, Medicare supplement, long-term care,

    Req. No. 14146                                              Page 3
1            disability income, or other limited benefit health

2            insurance policies, or coverage issued as supplemental

3            to liability insurance, workers' compensation, or

4            automobile medical payment insurance;

5   6. "Health care professional" means a physician or other health

6 care provider who is licensed by an occupational licensing board

7 under Title 59 or Title 63 of the Oklahoma Statutes.

8   7. "Health care service" means diagnosing, testing, monitoring,

9 or treating a human disease, disorder, syndrome, or illness that may

10 include, but not be limited to, hospitalization, physician care,

11 treatment, surgery, therapy, drugs, or medical equipment;

12  8. "Insurer" means any entity that issues, delivers, or renews

13 a health benefit plan, a health maintenance organization, or a

14 nonprofit health care service;

15  9. "Medical necessity" means the question of whether a health

16 care service is medically necessary;

17  10. "Network providers" means facilities and health care

18 professionals who, pursuant to a contract with the insurer, have

19 agreed to provide health care services to enrollees with an

20 expectation of receiving payment, other than copayments,

21 coinsurance, or deductibles, directly or indirectly, from the

22 insurer;

23  11. "Prior authorization" means a written or oral

24 determination made by a utilization review organization that a

    Req. No. 14146                                                 Page 4
1 health care service is a benefit covered under the applicable health

2 benefit plan which, under the enrollee's clinical circumstances, is

3 medically necessary or satisfies another requirement imposed by the

4 insurer or utilization review organization, and thus satisfies the

5 requirements for payment or reimbursement;

6   12. "Urgent care request" means a request for prior

7 authorization of a health care service for which the time period for

8 making a nonurgent determination of prior authorization could result

9 in at least one of the following outcomes for the enrollee:

10  a. death,

11  b. permanent impairment of health,

12  c. inability to regain maximum bodily function, or

13  d. severe pain that cannot be adequately managed; and

14  13. "Utilization review organization" means the entity that

15 makes determinations of prior authorization, which may be the

16 insurer or other entity that is a designated contractor or agent of

17 the insurer.

18  SECTION 2.      NEW LAW  A new section of law to be codified

19 in the Oklahoma Statutes as Section 6567.2 of Title 36, unless there

20 is created a duplication in numbering, reads as follows:

21  A. A prior authorization request that has not been submitted as

22 an urgent care request is deemed approved if, within seventy-two

23 (72) hours plus, if applicable, one (1) additional business day,

24

    Req. No. 14146                                                Page 5
1 after the date and time of submission of the request, the

2 utilization review organization fails to do one of the following:

3   1. Approve, deny, or fail in any way to acknowledge the

4 request;

5   2. Request from the network provider all additional

6 information needed to make a determination; or

7   3. Except for a prior authorization request for a prescription

8 drug, fails to notify the network provider that a determination of

9 prior authorization is delayed because the question of medical

10 necessity is difficult to resolve.

11  B. 1. If a network provider is requested to provide additional

12 information, whether in the form of additional documentation or in

13 the circumstances described in paragraph 2 of this subsection, the

14 utilization review organization shall have an additional seventy-two

15 (72) hours plus, if applicable, one (1) additional business day,

16 after the date and time of submission of the additional information

17 in which to make its decision or the prior authorization request is

18 deemed approved; and

19  2. A request for additional information under paragraph 1 of

20 this subsection shall include, in the case of a question of medical

21 necessity which is difficult to resolve, all of the following:

22          a. a direct phone number to the utilization review

23          organization,

24

    Req. No. 14146                                                 Page 6
1   b. hours of availability of the utilization review

2               organization's physician or other health care

3               professional who has authority to make the prior

4               authorization determination, and

5   c. a statement that there is an opportunity to discuss

6               the medical necessity of the health care service

7               directly with the physician or other health care

8               professional who has authority to make the prior

9               authorization determination.

10  C. Failure by the network provider to submit all clinical

11 information, including its response to a request for additional

12 information, within six (6) calendar days after the date of the

13 initial submission of the request shall necessitate the network

14 provider to request a new prior authorization.

15  D. A network provider shall submit a request for a prior

16 authorization that is not an urgent care request at least six (6)

17 calendar days before the scheduled health care service.

18  SECTION 3.      NEW LAW  A new section of law to be codified

19 in the Oklahoma Statutes as Section 6567.3 of Title 36, unless there

20 is created a duplication in numbering, reads as follows:

21  A. A prior authorization request that is submitted as an urgent

22 care request is deemed approved if, within twenty-four (24) hours

23 after the date and time of submission of the request, the

24 utilization review organization fails to do one of the following:

    Req. No. 14146                                                  Page 7
1   1. Approve or deny the request; or

2   2. Request from the network provider all additional information

3 needed to make a determination.

4   B. 1. A network provider shall submit additional information

5 requested by the utilization review organization within twenty-four

6 (24) hours of receiving a request for additional information; and

7   2. The prior authorization request is deemed approved by the

8 utilization review organization if it fails to grant or deny the

9 request or otherwise respond to the submission of additional

10 information by the network provider within twenty-four (24) hours

11 after the date and time of submission of the requested additional

12 information.

13  C. Failure by the network provider to submit all clinical

14 information in response to a request for additional information by

15 the utilization review organization within twenty-four (24) hours

16 after the date and time of the request shall necessitate the network

17 provider to request a new prior authorization.

18  SECTION 4.      NEW LAW  A new section of law to be codified

19 in the Oklahoma Statutes as Section 6567.4 of Title 36, unless there

20 is created a duplication in numbering, reads as follows:

21  A utilization review organization shall ensure that all

22 determinations on requests for prior authorization are made by a

23 physician or other health care professional who is competent to

24 evaluate and reject, if appropriate, any recommendation or

    Req. No. 14146                                                  Page 8
1 conclusion of artificial intelligence, based upon all relevant

2 factors that include, but are not limited to, the enrollee's

3 clinical circumstances, the information submitted by the network

4 provider, and all applicable criteria, policies, and guidelines.

5   SECTION 5.      NEW LAW  A new section of law to be codified

6 in the Oklahoma Statutes as Section 6567.5 of Title 36, unless there

7 is created a duplication in numbering, reads as follows:

8   A. When a utilization review organization issues an adverse

9 determination in response to a request for prior authorization, it

10 shall send a notification of its determination to both the network

11 provider and enrollee, which shall include all of the following

12 information:

13  1. The reasons for the adverse determination and, if

14 applicable, relevant evidence-based criteria, including a

15 description of missing or insufficient documentation, or lack of

16 coverage under the health benefit plan;

17  2. Instructions on how to appeal the determination; and

18  3. Additional documentation or other information necessary to

19 support the appeal.

20  B. In addition to the requirement of Section 4 of this act, a

21 utilization review organization shall ensure that all adverse

22 determinations are made by a physician who meets all of the

23 following requirements:

24

    Req. No. 14146                                                  Page 9
1   1. Possesses a current, nonrestricted license to practice

2 medicine issued by an occupational licensure board in any state or

3 territory of the United States;

4   2. Is board-eligible for certification or has equivalent

5 clinical practice experience in the same specialty as the physician

6 or other health care professional who would typically provide the

7 health care service for which prior authorization is requested;

8   3. Makes determinations under the supervision of a medical

9 director who is a current, licensed physician in the State of

10 Oklahoma; and

11  4. Receives compensation or payment from the utilization

12 review organization which is in no way increased or enhanced by

13 making an adverse determination.

14  SECTION 6.      NEW LAW  A new section of law to be codified

15 in the Oklahoma Statutes as Section 6567.6 of Title 36, unless there

16 is created a duplication in numbering, reads as follows:

17  A. A utilization review organization shall make its process for

18 appealing an adverse determination on a request for prior

19 authorization readily accessible on its website to its network

20 providers and enrollees.

21  B. When an appeal is received from a network provider or

22 enrollee on an adverse determination on a request for prior

23 authorization, a utilization review organization shall send a

24

    Req. No. 14146                                                 Page 10
1 notification to both the network provider and enrollee confirming,

2 reversing, or modifying the adverse determination within:

3       1. Seventy-two (72) hours plus, if applicable, one (1)

4 additional business day, for a nonurgent request; or

5       2. Twenty-four (24) hours for an urgent request.

6       C. A utilization review organization shall ensure that all

7 appeals from adverse determinations are decided by a physician other

8 than the physician who made the adverse determination and who meets

9 the requirements of paragraphs 1 through 4 of subsection B of

10 Section 5 of this act.

11      SECTION 7.    NEW LAW  A new section of law to be codified

12 in the Oklahoma Statutes as Section 6567.7 of Title 36, unless there

13 is created a duplication in numbering, reads as follows:

14      A. Beginning January 1, 2027, an insurer shall exempt a health

15 care professional who is a network provider from obtaining prior

16 authorization for a health care service covered under a health

17 benefit plan when all of the following requirements are met:

18      1. The health care service is otherwise subject to a prior

19 authorization requirement as a precondition to approval for payment

20 or reimbursement;

21      2. The health care professional provided the health care

22 service to at least seven different patients during the year 2025;

23 and

24

    Req. No. 14146                                                 Page 11
1       3. Prior authorization was approved, based upon the medical

2 necessity criteria used by the utilization review organization, for

3 ninety percent (90%) or more of the requests made by the health care

4 professional for the health care service.

5       B. The exemption provided in this section shall be effective

6 for the succeeding year upon determination by the utilization review

7 organization.

8       C. 1. Notwithstanding subsection B of this section, an insurer

9 may rescind the exemption at any time if the health care

10 professional knowingly and materially misrepresents the health care

11 service, including a substantial failure to provide the health care

12 service, in a claim made with the specific intent to deceive the

13 insurer and obtain an unlawful payment or reimbursement;

14      2. Notwithstanding subsection B of this section, an insurer may

15 rescind the exemption no less than ninety (90) days after the

16 exemption takes effect if the insurer or utilization review

17 organization detects an increase in claims for payment or

18 reimbursement for the health care service for which the exemption is

19 granted that is disproportionate or anomalous to the health care

20 professional's historic rate of providing the health care service;

21 and

22      3. An insurer shall give written notice to a health care

23 professional that the exemption is being rescinded no less than

24 twenty (20) days in advance of the effective date of the rescission.

    Req. No. 14146                                                Page 12
1   D. 1. An insurer may automatically renew an exemption from

2 prior authorization for a health care service for a succeeding year

3 if the health care professional submits fewer than seven (7) claims

4 for payment or reimbursement for the health care service during the

5 current exemption year, or for any other reason in the insurer's

6 discretion;

7   2. a. an insurer may retrospectively review the health care

8              professional's provision of the health care service

9              during the exemption year, using a review period of at

10             least nine (9) months, as a condition for renewing the

11             exemption for the succeeding year,

12  b. pursuant to a retrospective review, an insurer may

13             decline to renew the exemption on any of the following

14             grounds:

15             (1) the review discloses that less than ninety

16                  percent (90%) of the claims paid or reimbursed

17                  would meet the medical necessity criteria used by

18                  the utilization review organization, or

19             (2) the review discloses a claim or a pattern that

20                  would be grounds for rescission of the exemption

21                  as described in subsection c of this section; and

22  3. An insurer shall make efforts to ensure that written notice

23 of a decision granting or declining renewal of an exemption is

24 provided to a health care professional who has a current exemption

    Req. No. 14146                                                 Page 13
1 no later than at least thirty (30) days before the one-year

2 exemption period expires.

3   E. 1. When an insurer rescinds or declines to renew an

4 exemption from prior authorization for a health care service, it

5 shall send written notice of its decision to the health care

6 professional, which shall include:

7   a. the reason for the decision, and

8   b. instructions on how to submit a request for

9   reconsideration of the decision;

10  2. A health care professional may submit a request for

11 reconsideration of a decision to rescind or decline renewal of an

12 exemption within twenty (20) days of receiving notice of the health

13 insurer's decision;

14  3. a. an insurer shall afford a health care professional a

15  reasonable opportunity, including by a meeting or

16  informal hearing conducted in person or

17  electronically, to challenge the grounds for a

18  decision to rescind or decline renewal of an

19  exemption, to include the presentation of any relevant

20  documentation such as clinical records or claims data

21  as may be relevant to the reason for the insurer's

22  decision, and

23  b. reconsideration of a decision to decline renewal which

24  involves the issue of medical necessity shall be

    Req. No. 14146                                              Page 14
1   performed on behalf of the insurer by a physician who

2   meets the requirements of subsection B of Section 5 of

3   this act;

4   4. A decision by a health insurer on reconsideration, affirming

5 or denying its rescission or nonrenewal, is final;

6   5. All information, including, but not limited to, oral or

7 written communications, clinical records, supporting documentation,

8 up to the reason for rescinding or declining to renew an exemption,

9 or any decision on a request for reconsideration, shall be held in

10 the strictest confidence by both the insurer and the health care

11 professional, subject to any of the following:

12  a. reporting by an insurer of the facts of a case

13  described in paragraph 1 of subsection C of this

14  section to the commissioner, an occupational licensing

15  board, or law enforcement,

16  b. disclosure to a third party by mutual, written

17  agreement of the insurer and the health care

18  professional, subject to the federal Health Insurance

19  Portability and Accountability Act (HIPAA), 42 U.S.C.

20  Section 1320d et seq., or

21  c. use by the insurer or health care provider as

22  necessary to invoke or enforce any provision under a

23  network provider contract.

24  F. A health care professional who has been granted an

    Req. No. 14146                                         Page 15
1 exemption from prior authorization for a health care service

2 which has been rescinded or not renewed, and who is otherwise

3 a network provider, remains automatically eligible to receive

4 an exemption for a subsequent year for any health care service

5 he or she provides which may qualify for exemption, unless an

6 exemption was rescinded in a case described in paragraph 1 of

7 subsection C of this section.

8   G. An exemption from prior authorization under this section

9 shall not apply to any health care service that is deemed by the

10 health care insurer to be experimental.

11  SECTION 8.      NEW LAW      A new section of law to be codified

12 in the Oklahoma Statutes as Section 6567.8 of Title 36, unless there

13 is created a duplication in numbering, reads as follows:

14  The Oklahoma Insurance Commissioner may adopt any rules

15 necessary to implement and enforce this act.

16  SECTION 9. This act shall become effective November 1, 2026.

17

18  60-2-14146      MJ       01/06/26

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    Req. No. 14146                                                Page 16
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