CAL LEG Opioid Treatment Coverage


On Sep. 11, CAL LEG passed bill for outpatient drug benefit offerings.


  • CAL LEG passed bill AB 1842 re opioid-related or substance abuse treatment coverage.
  • Adds Health and Safety Code (HSC) section CAL LEG 2-1-1342.75 (health care service plans) and adds Insurance Code (INS) CAL INS 2-1-10123.1935 (contract provisions).
  • Bill Provisions
  • Group or individual health service plan or insurer offering an outpatient prescription drug benefit must offer at least 1 FDA-approved medication in each of four categories.
  • Medication to reverse opioid overdose including naloxone product or opioid antagonist.
  • Long-acting buprenorphine product; thirdly, long-acting injectable naltrexone product.
  • And fourth, to treat substance use disorder including daily oral buprenorphine product.
  • Plan/insurer must offer without prior authorization, step therapy, or utilization review.
  • Not prohibited from selecting an AB-rated generic equivalent, biosimilar, or interchangeable biological product defined as by 42 USC 262(i)(2), 42 USC 262(i)(3).
  • No reimbursement required; lack of reimbursement does not violate CAL Constitution.
  • Legislative History
  • On Jan. 16, 2024, bill introduced in Assembly; on Apr. 29, 2024, bill passed Assembly.
  • On Apr. 29, 2024, bill introduced in Senate; on Aug. 28, 2024, bill passed in Senate.
  • On Aug. 29, 2024, bill concurred in Assembly with Senate amendments, sent to enroll.
  • On Sep. 3, 2024, bill enrolled; on Sep. 11, 2024, bill was presented to the governor.
  • Effectiveness
  • No effective date specified; generally effective Jan. 1 after enactment, on Jan. 1, 2025.
  • Sep. 27, 2024 CAL LEG Governor Approval
  • On Sep. 27, 2024, CAL LEG governor approved bill AB 1842 and assigned Ch. 633.

Regulators CAL LEG
Entity Types Ins
Reference Ch. 633, 9/27/2024; Bill, AB1842, 9/11/2024; Citation: CAL INS 2-1-10123; CAL LEG 2-1-1342; 42 USC 262;
Functions Claims/Accelerated Benefits; Compliance; Legal; Product Administration
Countries United States of America
Category
State
Products Insurance; Insurance-Health
Regions Am
Rule Type Final
Rule Date 9/11/2024
Effective Date 1/1/2025
Rule Id 225971
Linked to N/A
Reg. Last Update 9/27/2024
Report Section US Insurance

Last substantive update on 10/02/2024