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Bill to remove 'fail‑first' prior authorization for some antipsychotics draws medical, agency debate

2866151 · April 2, 2025
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Summary

House Bill 610 would eliminate prior authorization requirements for antipsychotic drugs for Medicaid fee‑for‑service beneficiaries with serious mental illness. Supporters argued delays harm patients and raise long‑term costs; DPHHS cautioned the change could raise drug spending and offered a different fiscal calculation.

Representative (sponsor) introduced House Bill 610 to remove prior authorization requirements that the sponsor and proponents described as "fail‑first" policies for antipsychotic medications used to treat schizophrenia and bipolar disorder. Supporters, including pharmaceutical company Alkermes, clinicians and national mental‑health organizations, said prior authorization causes harmful delays and abandonment of treatment. They cited surveys of physicians saying prior authorization often delays care and can lead to treatment abandonment, and noted medications can reduce suicidality and hospitalization when available without administrative delay.

Clinician Dr. Sviatlana Yakov, an MD‑PhD psychiatrist practicing in Montana, described cases of patients with treatment‑resistant illness who improved when allowed access to specific antipsychotics or long‑acting injections and argued the medications reduce suicidal behavior, homelessness and emergency visits. National and local mental‑health advocacy groups urged a "do pass." Representative sponsor and proponents emphasized potential downstream savings in hospital and incarceration costs from more timely treatment.

The Department of Public Health and Human Services (DPHHS) provided a detailed fiscal response. Mary Lemieux and Katie Hawkins from DPHHS said the department's fiscal note projects an increase in utilization of higher‑cost, brand‑name antipsychotics if prior authorization is removed, producing a significant fiscal impact. DPHHS explained its note modeled drug utilization shifts toward non‑preferred branded products and used Medicaid rebate data and utilization files. The department also noted pharmacies can use a three‑day override in emergencies and that denials occur for multiple reasons beyond prior authorization.

Several committee members pressed on the fiscal numbers; proponents argued additional manufacturer supplemental rebates and participation in national pooling initiatives could reduce the estimated fiscal hit. The committee did not take executive action during the hearing; the department and proponents signaled a continued debate over the fiscal assumptions and potential mitigations such as adding antipsychotics to the preferred drug list.