Representative Edward H. Redd proposes the following substitute bill:





Chief Sponsor: Edward H. Redd

Senate Sponsor: Brian E. Shiozawa


9     General Description:
10          This bill amends the Insurance Code.
11     Highlighted Provisions:
12          This bill:
13          ▸     provides definitions;
14          ▸     requires the Public Employees' Health Plan to create a 3-year pilot program in the
15     state employees' risk pool to cover amino acid-based elemental formula for the
16     diagnosis or treatment of an eosinophilic gastrointestinal disorder, food
17     protein-induced enterocolitis syndrome, severe protein allergic condition, or short
18     bowel syndrome;
19          ▸     limits coverage to formula ordered by a physician and obtained from a pharmacy;
20          ▸     prohibits cost sharing for elemental formula that is less favorable to the insured than
21     cost sharing for prescription drugs; and
22          ▸     requires a report on the pilot program to the Social Services Appropriations
23     Subcommittee.
24     Money Appropriated in this Bill:
25          None

26     Other Special Clauses:
27          None
28     Utah Code Sections Affected:
29     ENACTS:
30          49-20-414, Utah Code Annotated 1953

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 49-20-414 is enacted to read:
34          49-20-414. Insurance coverage for amino acid-based formula.
35          (1) As used in this section:
36          (a) "Amino acid-based elemental formula" means a nutrition formula:
37          (i) made from individual nonallergenic amino acids that are broken down to enhance
38     absorption and digestion; and
39          (ii) designed for individuals who have a dysfunctional or shortened gastrointestinal
40     tract and are unable to tolerate and absorb whole foods or formulas composed of whole
41     proteins, fats, or carbohydrates.
42          (b) "Eosinophilic gastrointestinal disorder" means a disorder characterized by having
43     above normal amounts of eosinophils in one or more specific places anywhere in the digestive
44     system.
45          (c) "Food protein-induced enterocolitis syndrome" means a disorder characterized by
46     an abnormal immune response to an ingested food, resulting in gastrointestinal inflammation.
47          (d) "Health insurer" means an insurer, as defined in Subsection 31A-22-634(1).
48          (e) "Order" means to communicate orally, in writing, or by electronic means.
49          (f) "Pharmacy" means a pharmacy licensed under Title 58, Chapter 17b, Pharmacy
50     Practice Act.
51          (g) "Physician" means an individual who is licensed under Title 58, Chapter 67, Utah
52     Medical Practice Act, or Title 58, Chapter 68, Utah Osteopathic Medical Practice Act.
53          (h) "Program" means the eosinophilic gastrointestinal disorder program created in
54     Subsection (2).
55          (i) "Severe protein allergic conditions" includes:
56          (i) eosinophilic esophagitis;

57          (ii) eosinophilic gastritis;
58          (iii) eosinophilic gastroenteritis;
59          (iv) eosinophilic enteritis;
60          (v) eosinophilic colitis; or
61          (vi) food protein-induced enterocolitis syndrome.
62          (j) "Short bowel syndrome" means malabsorption of nutrients resulting from
63     anatomical or functional loss of a significant length of the small intestine.
64          (2) Beginning plan year 2017-18 and ending plan year 2019-20, the Public Employees'
65     Benefit and Insurance Program shall offer a 3-year pilot program within the state risk pool that
66     provides coverage for the use of an amino acid-based elemental formula, regardless of the
67     delivery method of the formula, for the diagnosis or treatment of an eosinophilic
68     gastrointestinal disorder, food protein-induced enterocolitis syndrome, severe protein allergic
69     condition, or short bowel syndrome.
70          (3) Coverage offered under Subsection (2) applies to an amino acid-based elemental
71     formula if:
72          (a) the formula is ordered for the enrollee by a physician;
73          (b) the physician indicates in the order that the formula is medically necessary; and
74          (c) the insured obtains the formula from a pharmacy.
75          (4) Coverage offered under Subsection (2) may not include cost-sharing provisions,
76     including deductibles, copayments, co-insurance, and out-of-pocket limits, or a durational
77     limit, that are less favorable to the insured than the cost-sharing provisions and durational
78     limits applied by the health benefit plan to prescription drugs.
79          (5) (a) The purpose of the program is to study the efficacy of providing coverage for
80     the use of an amino acid-based elemental formula and is not a mandate for coverage of an
81     amino acid-based elemental formula within the health plans offered by the Public Employees'
82     Benefit and Insurance Program.
83          (b) The Public Employees' Benefit and Insurance Program shall, on or before
84     November 30, 2019, report to the Social Services Appropriations Subcommittee regarding the
85     costs and benefits of the program.
86          (6) Under Section 63J-1-603 of the Utah Code, the Legislature intends that the cost of
87     services for the amino acid-based elemental formula program in Section 49-20-411 shall be

88     paid for from funds above the minimum recommended level in the public employees' state risk
89     pool reserve.