Indiana Code
Chapter 37.4. Electronic Prescription Drug Prior Authorization
27-1-37.4-8. "Step Therapy Protocol"; Notice of Denial; Required Information

Sec. 8. (a) As used in this section, "step therapy protocol" means a protocol that specifies, as a condition of coverage under a health plan, the order in which certain prescription drugs must be used to treat a covered individual's condition.
(b) A health plan that denies prior authorization for a prescription drug described in subdivision (1) or (2) shall provide, in the notice of denial, an alternative list of prescription drugs or alternative treatments as follows:
(1) If:
(A) the prescription drug is not included in the health plan's formulary; and
(B) there is at least one (1) alternative prescription drug in the same therapeutic classification (as defined in IC 12-15-35-17.5);
the alternative list must specify the alternative prescription drugs described in clause (B) that are covered by the health plan.
(2) If the prescription drug is prescribed to treat a condition for which coverage under the health plan requires use of a step therapy protocol, the alternative list must specify the alternative prescription drugs or alternative treatments that are required by the step therapy protocol.
As added by P.L.246-2019, SEC.23 and P.L.264-2019, SEC.12.

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