State News

The Oregon Health Authority’s annual report on cost growth trends found health care costs grew
3.6 percent in Oregon between 2021-2022, reports KTVZ. Overall spending growth was slightly
above the benchmark rate of 3.4 percent, however more than half of plans and provider
organizations met the target. Cost growth was driven by increases in hospital outpatient
services, behavioral health services, and changes in how providers were paid, with more
providers receiving prospective payments, quality payments, and other value-based
arrangements.

Oklahoma passed legislation addressing price transparency in an effort to limit medical debt,
reports KSWO. The new law aims to alleviate the burden of medical debt for Oklahomans by
establishing more transparent billing practices and limiting predatory debt collection tactics.

Michigan will require insurance providers to cover mental health and substance abuse disorder
treatments at the same level as medical coverage, according to the Detroit Free Press. State-
regulated health plans will be barred from imposing greater deductibles, co-payments, and out-
of-pocket maximums on mental health and substance use disorder treatment than they would
for medical coverage. The legislation mirrors federal parity requirements and aims to limit
loopholes for paying for certain mental health services.

Vermont passed legislation directing the Green Mountain Care Board to explore and create a
plan to regulate the cost of prescription drugs in the state, reports VT Digger. The board will
review of options for cost regulation, including Prescription Drug Affordability Boards (PDABs) in
other states, the Medicare Drug Price Negotiation Program, and other programs. The board
must provide a final plan to the legislature by January 15, 2026.

Vermont has eliminated prior authorization for select primary care services in state-regulated
plans, according to Vermont Public. The legislation allows primary care physicians to order tests
and certain medications for their patients without first seeking prior authorization from insurance
companies.

Connecticut Governor Ned Lamont signed a bill prohibiting health care providers from reporting
medical debt to credit rating agencies, reports the National Law Review. Effective July 1, 2024,
the law updates existing regulations and mandates that health care providers and collection
entities include a clause in their contracts that bans reporting medical debt. This aims to protect
patients' credit scores from being negatively impacted by medical debt.

Oklahoma passed legislation simplifying the prior authorization process, reports KFOR. This
legislation requires prior authorization procedures to be published on websites available to
patients and providers, those with chronic conditions must be notified no less than 60 days prior
to changes that will affect them, appeals must be reviewed by providers of the same or similar
specialties, and insurers must respond to urgent requests within 72 hours and nonurgent
requests within seven days. Moreover, the new law requires hospitals prove compliance with
federal price transparency regulations before pursuing collections. The new law aims to improve
health care efficiency and reduce administrative burdens on health care providers, ultimately
benefiting patient care and accessibility.

Maryland will require health insurance carriers to cover prostheses and hearing aids, reports
WYPR News. State-regulated insurance plans will have to cover prostheses (a custom device to
treat partial or total limb loss) medically necessary hearing aids for adults, effective January 1,
2025.

Iowa will require insurers to cover supplemental and diagnostic breast examinations for state-
regulated plans beginning January 1, 2025, reports the Des Moines Register. Screening
mammograms are covered under law, but supplemental and diagnostic screenings with MRI
and ultrasound, which are often requested during follow-up visits, are not covered, leading to
extra costs for patients and causes some to avoid the screenings.