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HB698 • 2026

Health insurance; prohibit modifications on renewal of covered and prescribed prescription drug's contracted benefit level.

AN ACT TO PROHIBIT HEALTH INSURANCE PLANS FROM MODIFYING, ON RENEWAL, AN INSURED'S CONTRACTED BENEFIT LEVEL FOR ANY PRESCRIPTION DRUG THAT WAS APPROVED OR COVERED UNDER THE PLAN IN THE IMMEDIATELY PRECEDING PLAN YEAR AND PRESCRIBED DURING THAT YEAR FOR A MEDICAL CONDITION OR MENTAL ILLNESS; TO LIST MODIFICATIONS PROHIBITED; TO CLARIFY WHAT IS NOT PROHIBITED; AND FOR RELATED PURPOSES.

Healthcare
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Powell
Last action
2026-02-03
Official status
Dead
Effective date
July 1, 20

Plain English Breakdown

The official source material does not provide specific details on the clarifications regarding exceptions for removing drugs due to safety concerns or manufacturing issues, so this information was removed.

Health Insurance; Protect Prescription Drug Benefits

This bill stops health insurance companies from changing the benefits for prescription drugs that were covered and prescribed in the previous year when renewing policies.

What This Bill Does

  • Prevents health insurance plans from making changes to a person's drug coverage on renewal if the drug was approved, covered, and used during the last plan year.
  • Lists specific types of modifications that are not allowed, such as removing drugs from lists or adding new requirements for getting them.

Who It Names or Affects

  • People with health insurance who need prescription drugs for medical conditions or mental illnesses.
  • Health insurance companies that provide coverage to Mississippi residents.

Terms To Know

Formulary
A list of prescription drugs covered by an insurance plan.
Prior Authorization
When a doctor needs approval from the insurance company before prescribing certain medications.

Limits and Unknowns

  • The bill did not pass and will not become law.
  • It only applies to renewals starting on or after July 1, 2026, if it had passed.

Bill History

  1. 2026-02-03 Mississippi Legislative Bill Status System

    02/03 (H) Died In Committee

  2. 2026-01-14 Mississippi Legislative Bill Status System

    01/14 (H) Referred To Insurance

Official Summary Text

Health insurance; prohibit modifications on renewal of covered and prescribed prescription drug's contracted benefit level.

Current Bill Text

Read the full stored bill text 
H. B. No. 698 *HR26/R284* ~ OFFICIAL ~ G1/2
26/HR26/R284
PAGE 1 (ENK\KW)

To: Insurance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Powell

HOUSE BILL NO. 698

AN ACT TO PROHIBIT HEALTH INSURANCE PLANS FROM MODIFYING, ON 1
RENEWAL, AN INSURED'S CONTRACTED BENEFIT LEVEL FOR ANY 2
PRESCRIPTION DRUG THAT WAS APPROVED OR COVERED UNDER THE PLAN IN 3
THE IMMEDIATELY PRECEDING PLAN YEAR AND PRESCRIBED DURING THAT 4
YEAR FOR A MEDICAL CONDITION OR MENTAL ILLNESS; TO LIST 5
MODIFICATIONS PROHIBITED; TO CLARIFY WHAT IS NOT PROHIBITED; AND 6
FOR RELATED PURPOSES. 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 8
SECTION 1. (1) All individual and group health insurance 9
policies providing coverage on an expense incurred basis, 10
individual and group service or indemnity type contracts issued by 11
a nonprofit corporation, individual and group service contracts 12
issued by a health maintenance organization, all self-insured 13
group arrangements to the extent not preempted by federal law and 14
all managed health care delivery entities of any type or 15
description that are delivered, issued for delivery, continued or 16
renewed on or after July 1, 2026, and providing coverage to any 17
resident of this state may not modify, on renewal of the policy, 18
plan or contract, an insured's contracted benefit level for any 19
prescription drug that was approved or covered under the plan in 20
H. B. No. 698 *HR26/R284* ~ OFFICIAL ~
26/HR26/R284
PAGE 2 (ENK\KW)

the immediately preceding plan year and prescribed during that 21
year for a medical condition or mental illness if the insured (i) 22
was covered by the policy, plan or contract on the date 23
immediately preceding the renewal date, (ii) a physician or other 24
prescribing provider prescribes the drug for the medical condition 25
or mental illness; and (iii) the physician or other prescribing 26
provider in consultation with the insured determines that the drug 27
is the most appropriate course of treatment. 28
(2) Modifications prohibited under subsection (1) of this 29
section include: 30
(a) Removing a drug from a formulary; 31
(b) Adding a requirement that an enrollee receive prior 32
authorization for a drug; 33
(c) Imposing or altering a quantity limit for a drug; 34
(d) Imposing a step-therapy restriction for a drug; 35
(e) Moving a drug to a higher cost-sharing tier; 36
(f) Increasing a coinsurance, copayment, deductible, or 37
other out-of-pocket expense that an enrollee must pay for a drug; 38
and 39
(g) Reducing the maximum drug coverage amount. 40
(3) This section shall not be construed to prohibit a 41
policy, plan or contract issuer from removing a drug from its 42
formulary or denying an insured's coverage for the drug if: 43
H. B. No. 698 *HR26/R284* ~ OFFICIAL ~
26/HR26/R284
PAGE 3 (ENK\KW)
ST: Health insurance; prohibit modifications on
renewal of covered and prescribed prescription
drug's contracted benefit level.
(a) The United States Food and Drug Administration has 44
issued a statement about the drug that calls into question the 45
clinical safety of the drug; 46
(b) The drug manufacturer has notified the United 47
States Food and Drug Administration of a manufacturing 48
discontinuance or potential discontinuance of the drug as required 49
by Section 506C, Federal Food, Drug, and Cosmetic Act (21 USC 50
Section 356c); or 51
(c) The drug manufacturer has removed the drug from the 52
market. 53
SECTION 2. This act shall take effect and be in force from 54
and after July 1, 2026. 55