Sec. 36. (a) As used in this section, "prior authorization" means a practice implemented by a health plan through which coverage of a health care service is dependent on the covered individual or health care provider obtaining approval from the health plan before the health care service is rendered. The term includes prospective or utilization review procedures conducted before a health care service is rendered.
(b) The department may enter into partnerships and joint ventures to encourage best practices in the appropriate and effective use of prior authorization in health care.