(a) Each Medicaid managed care organization, in consultation with the organization’s provider advisory group required by contract, shall develop and implement a process for conducting an annual review of the organization’s prior authorization requirements. The annual review process does not apply to a prior authorization requirement prescribed by or implemented under Subchapter F, Chapter 549, for the vendor drug program.
(b) In conducting an annual review, a Medicaid managed care organization must:
(1) solicit, receive, and consider input from providers in the organization’s provider network; and
(2) ensure that each prior authorization requirement is based on accurate, up-to-date, evidence-based, and peer-reviewed clinical criteria that, as appropriate, distinguish between categories of recipients for whom prior authorization requests are submitted, including age categories.

(c) A Medicaid managed care organization may not impose a prior authorization requirement, other than a prior authorization requirement prescribed by or implemented under Subchapter F, Chapter 549, for the vendor drug program, unless the organization reviewed the requirement during the most recent annual review.
(d) The commission shall periodically review each Medicaid managed care organization to ensure the organization’s compliance with this section.

Text of section effective on April 01, 2025