ENROLLED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 56
(Senator Chafin, original sponsor)
____________
[Passed March 7, 2003; in effect ninety days from passage.]
____________
AN ACT to amend article sixteen, chapter thirty-three of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
three-q; to amend article twenty-four of said chapter by
adding thereto a new section, designated section seven-h; to
amend article twenty-five of said chapter by adding thereto a
new section, designated section eight-f; and to amend article
twenty-five-a of said chapter by adding thereto a new section,
designated section eight-g, all relating generally to group
accident and sickness insurance, hospital service
corporations, medical service corporations, dental service
corporations, health service corporations, health care
corporations and health maintenance organizations; and
prohibiting certain contracts of insurance from requiring
subscribers to obtain prescription drugs from a mail-order
pharmacy in order to obtain benefits for drugs.
Be it enacted by the Legislature of West Virginia:
That article sixteen, chapter thirty-three of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section three-
q; that article twenty-four of said chapter be amended by adding
thereto a new section, designated section seven-h; that article
twenty-five of said chapter be amended by adding thereto a new
section, designated section eight-f; and that article twenty-five-a
of said chapter be amended by adding thereto a new section,
designated section eight-g, all to read as follows:
ARTICLE 16. GROUP ACCIDENT AND SICKNESS INSURANCE.
§33-16-3q. Required use of mail-order pharmacy prohibited.
(a) An insurer issuing group accident and sickness policies in
this state pursuant to the provisions of this article may not
require any person covered under a contract which provides coverage
for prescription drugs
to obtain the prescription drugs from a
mail-order pharmacy in order to obtain benefits for the drugs.
(b) An insurer may not violate the provisions of subsection
(a) of this section through the use of an agent or contractor or
through the action of an administrator of prescription drug
benefits.
(c) The insurance commissioner may propose rules for
legislative approval in accordance with the provisions of article
three, chapter twenty-nine-a of this code to implement and enforce
the provisions of this section.
ARTICLE 24. HOSPITAL SERVICE CORPORATIONS, MEDICAL SERVICE
CORPORATIONS, DENTAL SERVICE CORPORATIONS AND HEALTH SERVICE CORPORATIONS.
§33-24-7h. Required use of mail-order pharmacy prohibited.

(a) A corporation defined in section two of this article may
not require any person covered under a contract which provides
coverage for prescription drugs
to obtain the prescription drugs
from a mail-order pharmacy in order to obtain benefits for the
drugs.

(b) A corporation may not violate the provisions of subsection
(a) of this section through the use of an agent or contractor or
through the action of an administrator of prescription drug
benefits.

(c) The insurance commissioner may propose rules for
legislative approval in accordance with the provisions of article
three, chapter twenty-nine-a of this code to implement and enforce
the provisions of this section.
ARTICLE 25. HEALTH CARE CORPORATIONS.
§33-25-8f. Required use of mail-order pharmacy prohibited.

(a) A health care corporation issuing a contract under the
provisions of this article may not require any person covered under
a contract which provides coverage for prescription drugs
to obtain
the prescription drugs from a mail-order pharmacy in order to
obtain benefits for the drugs.

(b) A health care corporation may not violate the provisions
of subsection (a) of this section through the use of an agent or
contractor or through the action of an administrator of
prescription drug benefits.

(c) The insurance commissioner may propose rules for
legislative approval in accordance with the provisions of article
three, chapter twenty-nine-a of this code to implement and enforce
the provisions of this section.
ARTICLE 25A. HEALTH MAINTENANCE ORGANIZATION ACT.
§33-25A-8g. Required use of mail-order pharmacy prohibited.

(a) A health maintenance organization issuing coverage in this
state pursuant to the provisions of this article may not require
any person covered under a contract which provides coverage for
prescription drugs
to obtain the prescription drugs from a mail-
order pharmacy in order to obtain benefits for the drugs.

(b) A health maintenance organization may not violate the
provisions of subsection (a) of this section through the use of an
agent or contractor or through the action of an administrator of
prescription drug benefits.

(c) The insurance commissioner may propose rules for
legislative approval in accordance with the provisions of article
three, chapter twenty-nine-a of this code to implement and enforce
the provisions of this section.