2.__Prior authorization.__In the adoption of any prior authorization process for pharmacy benefits, the provisions of this subsection apply.

A.__The department shall adopt rules providing clinical exemptions from the prior authorization process for at least the following groups of persons:

(1) Members who are unable to adequately communicate their health condition as a result of dementia or other cognitive or physical impairment;

(2)__Members who reside in health care or residential care facilities;

(3)__Members who have acute psychiatric conditions that have been stabilized on a nonpreferred drug and who, in the judgment of the treating health care provider, would suffer an adverse health effect as a result of changing that drug;

(4)__Members whose medical condition has been stabilized on a nonpreferred drug during hospitalization or who have been prescribed a nonpreferred drug upon discharge so that they may continue to receive the drug following hospitalization for a transition period of at least 90 days;

(5)__Members for whom the abrupt termination of a certain prescribed drug may cause serious harm; and

(6)__Members who are frail or medically vulnerable, including those diagnosed with HIV or AIDS, for whom exclusion from prior authorization is clinically appropriate.

B.__The department shall adopt rules that provide for dispensing drugs on an emergency basis.

(1)__The rules must apply if a prescribing provider fails to submit a completed application for prior authorization or to attach the required documentation.

(2)__The rules must authorize the pharmacy to dispense, in accordance with applicable licensing standards and