Medical necessity in insurance contracts.

08LSO-0126.L3

FISCAL NOTE

No significant fiscal or personnel impact.

The bill provides a definition of “medical necessity” and requires insurers to follow that definition if used in their disability (health) insurance policies.  The Department of Insurance is required to enforce this with regard to claim denials.  It is possible that the agency could levy fines on insurers under the general penalty section of the Insurance Code for violations of the provisions of this bill; however, the number and amount of such fines is indeterminable.

Prepared by:  Kelley Shepp, LSO   Phone:  (307)777-7881

(Information provided by, Ken Vines, Department of Insurance

Phone  777-6894)