Health Policy Rollup: State Action We’re Watching in August 2025
Here are the bills we’re watching this month.
Alaska Enacts Comprehensive Prior Authorization Reform
SB 133 was enacted into law this past month as a result of the Governor opting to take no action on the measure. SB 133 was a significant prior authorization reform effort by the Legislature that establishes determination timelines for prior authorization requests, establishes transparency requirements for insurers on prior authorization requirements and data, requires insurers to establish exception processes from step therapy requirements, and requires approvals of prior authorization for chronic conditions to be valid for at least 12 months, among other reforms.
Illinois Prohibits AI in Mental Health Decision-Making
Enacted in early August, HB 1806 prohibits anyone from using artificial intelligence (AI) to provide mental health or therapeutic decision-making. The intent is to prohibit certain AI products from being marketed to consumers, while at the same time limiting opportunities for qualified behavioral health providers.
Maryland PDAB Targets Diabetes Drug Affordability
During its July meeting, the Maryland Prescription Drug Affordability Board conducted cost review studies on diabetes drugs Farxiga and Jardiance. The PDAB made a preliminary determination that the use of the drugs created an affordability challenge for the state healthcare system. The PDAB will now examine drivers of the affordability challenges and policy options to address them, which could include upper payment limits (UPLs).
Massachusetts Strengthens Physician Shield Law Protections
On August 7th, Governor Maura Healey (D) signed S. 2543 into law. The bill updates the state’s shield law to establish additional protections for physicians providing abortion and gender affirming care. Among other elements, the newly enacted law prevents the disclosure of sensitive data, such as a physician’s name, and requires abortions to be provided in emergencies if medically necessary. The bill also prohibits state and local authorities from cooperating with federal or other state investigations into services that are legally protected in Massachusetts.
New Hampshire Sets Ambulance Reimbursement Standards
Governor Kelly Ayotte (R) signed SB 245 into law this past month, which sets a reimbursement rate for out-of-network ground ambulance services at 325 percent of Medicare for such services being delivered for the first two years of the bill’s implementation. After those two years are up, the Insurance Department will then set a new and updated rate based on an actuarial study that accounts for inflation and other influencing market factors.
Track Health Care Policy
The ever-evolving state health policy landscape will continue to influence how health care organizations make business decisions. MultiState's team pulls from decades of expertise to help you effectively navigate and engage. MultiState's team understands the issues, knows the key players and organizations, and we harness that expertise to help our clients effectively navigate and engage on their policy priorities. We offer customized strategic solutions to help you develop and execute a proactive multistate agenda focused on your company's goals. Learn more about our Health Care Policy Practice.