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S 2863Health Insurance

Insurance - Accident and Sickness Insurance Policies

Starting in 2027, health insurance plans must cover a 12-month supply of prescription hormone therapy dispensed at one time.

Introduced36 Yea2 Nay0 Not voting
Population
Affected
15
Introduced Mar 4, 2026Committee Senate Health & Human Services

Plain-English Summary

This legislation requires health insurance providers and the state Medicaid program in Rhode Island to cover a 12-month (365-day) supply of prescription hormone therapy at one time. This requirement applies if the patient requests it and the doctor approves it, provided the medication is not a controlled substance with stricter legal limits. The bill defines hormone therapy as drugs used to modify hormone levels but specifically excludes GLP-1 drugs commonly used for weight loss or diabetes. These changes for insurance plans and Medicaid are scheduled to begin on or after January 1, 2027.

For younger readers

This new rule helps people who need special medicine called hormones to stay healthy. Usually, people have to go to the pharmacy every month to pick up their medicine. This bill says that starting in 2027, insurance companies must let people get a whole year's worth of this medicine all at once if their doctor says it is okay. This makes it easier for patients so they don't have to make as many trips to the store. This rule does not apply to certain medicines used for weight loss.

Who & Where It Applies

Impacted groups
Patients prescribed hormone therapyHealth Insurance CompaniesMedicaid BeneficiariesPharmaciesDoctors and Prescribing Providers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Significantly improves access to healthcare for transgender and non-binary individuals by ensuring consistent, uninterrupted access to gender-affirming hormone therapies.
  • Strengthens the social safety net by mandating that Medicaid beneficiaries receive the same bulk-dispensing benefits as private insurance holders, reducing transportation barriers for low-income residents.
  • Reduces administrative burdens and potential lapses in medication adherence for patients with chronic conditions requiring hormone replacement, promoting better long-term health outcomes.
  • Explicitly excludes GLP-1 receptor agonists (often used for diabetes and weight management), which may be viewed as denying equitable access to effective treatments for obesity and metabolic conditions.
  • Allows insurance companies to continue using "drug utilization management strategies," which could still be used to create bureaucratic hurdles or delays in accessing care.
  • The implementation date is delayed until January 1, 2027, leaving a significant gap of time where patients will continue to face barriers to accessing bulk supplies of medication.
For Conservatives
  • Reduces overall healthcare costs by excluding expensive GLP-1 weight-loss drugs from the bulk dispensing mandate, protecting insurance pools from high-cost claims.
  • Supports market efficiency and consumer convenience by allowing individuals to obtain a year's supply of medication at once, reducing the frequency of pharmacy visits.
  • Maintains strict adherence to state and federal laws regarding controlled substances, ensuring that the loosening of dispensing limits does not apply to addictive or regulated drugs.
  • Imposes government mandates on private insurance contracts, interfering with the free market and the ability of businesses to structure their own benefit plans.
  • Facilitates easier access to gender-affirming care (hormone therapy), which conflicts with traditional social values regarding gender and biological sex.
  • May lead to financial waste if a patient discontinues the medication or their prescription changes early in the year, as the insurance company has already paid for a 365-day supply.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 142 additions

SECTION 1. Chapter 27-18 of the General Laws entitled "Accident and Sickness Insurance Policies" is hereby amended by adding thereto the following section: 27-18-50.3. Prescription hormone therapy.

(a) As used in this section, "prescription hormone therapy" means all drugs approved by the United States Food and Drug Administration that are used to medically suppress, increase, or replace hormones that the body is not producing at intended levels, as determined by the prescribing provider. Prescription hormone therapy includes, but is not limited to, any necessary supplies for administration. Prescription hormone therapy shall not include glucagon-like peptide-1 and glucagon-like peptide-1 receptor agonists.

(b) Beginning on the first day of each plan year after January 1, 2027, every individual or group health insurance contract, plan, or policy that provides prescription hormone therapy coverage and is delivered, issued for delivery, or renewed in this state shall provide reimbursement for dispensing covered prescription hormone therapy up to three hundred sixty-five (365) days at one time, unless the enrollee requests a smaller supply, the prescribing provider instructs that the enrollee shall receive a smaller supply, or the prescription hormone therapy is a controlled substance. If the prescription hormone therapy is a controlled substance, the health plan shall provide reimbursement for the maximum refill allowed under state and federal law to be obtained at one time by the enrollee.

(c) Nothing in this section prohibits a health plan from limiting refills that may be obtained in the last quarter of the plan year if a three hundred sixty-five (365) day supply of the prescription hormone therapy has already been dispensed during the plan year.

(d) To the extent not otherwise prohibited under this section or state or federal law, health plans may apply drug utilization management strategies to prescription drugs covered under subsection (a) of this section.

(e) This section does not apply to insurance coverage providing benefits for:

(1) Hospital confinement indemnity;

(2) Disability income;

(3) Accident only;

(4) Long-term care;

(5) Medicare supplement;

(6) Limited benefit health;

(7) Specified disease indemnity;

(8) Sickness or bodily injury or death by accident or both; and

(9) Other limited-benefit policies.

SECTION 2. Chapter 27-19 of the General Laws entitled "Nonprofit Hospital Service Corporations" is hereby amended by adding thereto the following section: 27-19-42.2. Prescription hormone therapy.

(a) As used in this section, "prescription hormone therapy" means all drugs approved by the United States Food and Drug Administration that are used to medically suppress, increase, or replace hormones that the body is not producing at intended levels, as determined by the prescribing provider. Prescription hormone therapy includes, but is not limited to, any necessary supplies for administration. Prescription hormone therapy shall not include glucagon-like peptide-1 and glucagon-like peptide-1 receptor agonists.

(b) Beginning on the first day of each plan year after January 1, 2027, every individual or group health insurance contract, plan, or policy that provides prescription hormone therapy coverage and is delivered, issued for delivery, or renewed in this state shall provide reimbursement for dispensing covered prescription hormone therapy up to three hundred sixty-five (365) days at one time, unless the enrollee requests a smaller supply, the prescribing provider instructs that the enrollee shall receive a smaller supply, or the prescription hormone therapy is a controlled substance. If the prescription hormone therapy is a controlled substance, the health plan shall provide reimbursement for the maximum refill allowed under state and federal law to be obtained at one time by the enrollee.

(c) Nothing in this section prohibits a health plan from limiting refills that may be obtained in the last quarter of the plan year if a three hundred sixty-five (365) day supply of the prescription hormone therapy has already been dispensed during the plan year.

(d) To the extent not otherwise prohibited under this section or state or federal law, health plans may apply drug utilization management strategies to prescription drugs covered under subsection (a) of this section.

(e) This section does not apply to insurance coverage providing benefits for:

(1) Hospital confinement indemnity;

(2) Disability income;

(3) Accident only;

(4) Long-term care;

(5) Medicare supplement;

(6) Limited benefit health;

(7) Specified disease indemnity;

(8) Sickness or bodily injury or death by accident or both; and

(9) Other limited-benefit policies.

SECTION 3. Chapter 27-20 of the General Laws entitled "Nonprofit Medical Service Corporations" is hereby amended by adding thereto the following section: 27-20-23.4. Prescription hormone therapy.

(a) As used in this section, "prescription hormone therapy" means all drugs approved by the United States Food and Drug Administration that are used to medically suppress, increase, or replace hormones that the body is not producing at intended levels, as determined by the prescribing provider. Prescription hormone therapy includes, but is not limited to, any necessary supplies for administration. Prescription hormone therapy shall not include glucagon-like peptide-1 and glucagon-like peptide-1 receptor agonists.

(b) Beginning on the first day of each plan year after January 1, 2027, every individual or group health insurance contract, plan, or policy that provides prescription hormone therapy coverage and is delivered, issued for delivery, or renewed in this state shall provide reimbursement for dispensing covered prescription hormone therapy up to three hundred sixty-five (365) days at one time, unless the enrollee requests a smaller supply, the prescribing provider instructs that the enrollee shall receive a smaller supply, or the prescription hormone therapy is a controlled substance. If the prescription hormone therapy is a controlled substance, the health plan shall provide reimbursement for the maximum refill allowed under state and federal law to be obtained at one time by the enrollee.

(c) Nothing in this section prohibits a health plan from limiting refills that may be obtained in the last quarter of the plan year if a three hundred sixty-five (365) day supply of the prescription hormone therapy has already been dispensed during the plan year.

(d) To the extent not otherwise prohibited under this section or state or federal law, health plans may apply drug utilization management strategies to prescription drugs covered under subsection (a) of this section.

(e) This section does not apply to insurance coverage providing benefits for:

(1) Hospital confinement indemnity;

(2) Disability income;

(3) Accident only;

(4) Long-term care;

(5) Medicare supplement;

(6) Limited benefit health;

(7) Specified disease indemnity;

(8) Sickness or bodily injury or death by accident or both; and

(9) Other limited-benefit policies.

SECTION 4. Chapter 27-41 of the General Laws entitled "Health Maintenance Organizations" is hereby amended by adding thereto the following section: 27-41-38.5. Prescription hormone therapy.

(a) As used in this section, "prescription hormone therapy" means all drugs approved by the United States Food and Drug Administration that are used to medically suppress, increase, or replace hormones that the body is not producing at intended levels, as determined by the prescribing provider. Prescription hormone therapy includes, but is not limited to, any necessary supplies for administration. Prescription hormone therapy shall not include glucagon-like peptide-1 and glucagon-like peptide-1 receptor agonists.

(b) Beginning on the first day of each plan year after January 1, 2027, every individual or group health insurance contract, plan, or policy that provides prescription hormone therapy coverage and is delivered, issued for delivery, or renewed in this state shall provide reimbursement for dispensing covered prescription hormone therapy up to three hundred sixty-five (365) days at one time, unless the enrollee requests a smaller supply, the prescribing provider instructs that the enrollee shall receive a smaller supply, or the prescription hormone therapy is a controlled substance. If the prescription hormone therapy is a controlled substance, the health plan shall provide reimbursement for the maximum refill allowed under state and federal law to be obtained at one time by the enrollee.

(c) Nothing in this section prohibits a health plan from limiting refills that may be obtained in the last quarter of the plan year if a three hundred sixty-five (365) day supply of the prescription hormone therapy has already been dispensed during the plan year.

(d) To the extent not otherwise prohibited under this section or state or federal law, health plans may apply drug utilization management strategies to prescription drugs covered under subsection (a) of this section.

(e) This section does not apply to insurance coverage providing benefits for:

(1) Hospital confinement indemnity;

(2) Disability income;

(3) Accident only;

(4) Long-term care;

(5) Medicare supplement;

(6) Limited benefit health;

(7) Specified disease indemnity;

(8) Sickness or bodily injury or death by accident or both; and

(9) Other limited-benefit policies.

SECTION 5. Chapter 40-8.4 of the General Laws entitled "Health Care for Families" is hereby amended by adding thereto the following section: 40-8.4-21. Prescription hormone therapy.

(a) As used in this section, "prescription hormone therapy" means all drugs approved by the United States food and drug administration that are used to medically suppress, increase, or replace hormones that the body is not producing at intended levels, as determined by the prescribing provider. Prescription hormone therapy includes, but is not limited to, any necessary supplies for administration. Prescription hormone therapy does not include glucagon-like peptide-1 and glucagon-like peptide-1 receptor agonists.

(b) Beginning January 1, 2027, the executive office of health and human services (EOHHS) shall provide Medicaid beneficiaries who are prescribed prescription hormone therapy up to three hundred sixty-five (365) days of prescription hormone therapy dispensed as a single prescription.

(c) The secretary of the EOHHS shall apply to the United States department of health and human services for any amendment to the state Medicaid plan or for any Medicaid waiver as necessary to implement this section. The secretary of the EOHHS shall submit the Medicaid state plan amendment within ninety (90) days of the effective date of this section.

SECTION 6. This act shall take effect upon passage.