Session of 2000
HOUSE BILL No. 2777
By Committee on Insurance
2-1
9 AN ACT
concerning insurance; providing coverage for contraceptives;
10 amending K.S.A. 1999
Supp. 40-2,103 and 40-19c09 and repealing the
11 existing sections.
12
13 Be it enacted by the Legislature of the
State of Kansas:
14 New Section
1. This act shall be known as the parity in prescription
15 insurance and contraceptive coverage act of
2000.
16 New Sec.
2. (a) "Insured" means the beneficiary of any insurance
17 company, fraternal benefit society, health
maintenance organization and
18 nonprofit hospital and medical service
corporation authorized to transact
19 health insurance business in this
state.
20 (b) "Health
insurance plan" means any hospital or medical expense
21 policy, health, hospital or medical service
corporation contract, and a plan
22 provided by a municipal group-funded pool,
or a health maintenance
23 organization contract offered by an
employer or any certificate issued
24 under any such policies, contracts or
plans. Health insurance plan does
25 not include policies or certificates
covering any specified disease, speci-
26 fied accident or accident only coverage,
credit, dental, disability income,
27 hospital indemnity, long-term care
insurance as defined by K.S.A. 40-
28 2227 and amendments thereto, vision care or
any other limited supple-
29 mental benefit nor to any medicare
supplement policy of insurance as
30 defined by the commissioner of insurance by
rule and regulation, any
31 coverage issued as a supplement to
liability insurance, workers compen-
32 sation or similar insurance, automobile
medical-payment insurance or any
33 insurance under which benefits are payable
with or without regard to
34 fault, whether written on a group, blanket,
or individual basis.
35 (c) "Outpatient
contraceptive services" means consultations, exami-
36 nations, procedures and medical services,
provided on an outpatient basis
37 and related to the use of contraceptive
methods to prevent pregnancy.
38
(d) "Commissioner" means the commissioner of insurance.
39 New Sec.
3. (a) Every health insurance plan that is delivered,
issued,
40 executed, or renewed in this state or
approved for issuance or renewal in
41 this state by the commissioner on or after
July 1, 2000, which provides
42 coverage for prescription drugs on an
outpatient basis or outpatient serv-
43 ices provided by a health care
professional:
2
1 (1) Shall
provide coverage for any prescribed drug or device approved
2 by the United States food and drug
administration for use as a contra-
3 ceptive; and
4 (2) shall
provide coverage for the insertion or removal of such device,
5 and any medically necessary
examination associated with the use of such
6 contraceptive.
7 New Sec.
4. No health insurance plan shall:
8 (a) Impose any
deductible, coinsurance, other cost-sharing or waiting
9 period in relation to benefits for
prescription contraceptive drugs or de-
10 vices under a health insurance plan, unless
such a deductible, coinsur-
11 ance, other cost-sharing or waiting period
for such contraceptive drugs
12 and devices is no greater than such
deductibles, coinsurance, cost-sharing
13 or waiting periods for other prescription
drugs or devices covered under
14 the health insurance plan;
15 (b) impose any
deductible, coinsurance, other cost-sharing or waiting
16 period in relation to benefits for
outpatient contraceptive services under
17 a health insurance plan, unless such a
deductible, coinsurance, other cost-
18 sharing or waiting period for such
contraceptive services is no greater
19 than such deductibles, coinsurance,
cost-sharing or waiting periods for
20 other outpatient services covered under the
health insurance plan;
21 (c) deny to any
individual or insured person eligibility, or continued
22 eligibility, to enroll or to renew coverage
under the terms of the plan
23 because of the individual's or insured's
use or potential use of items or
24 services that are covered in accordance
with the requirements of this act;
25 (d) provide
monetary payments or rebates to a covered person to
26 encourage such insured to accept less than
the minimum protections
27 available under this act;
28 (e) penalize or
otherwise reduce or limit the reimbursement of a
29 health care professional because such
professional prescribed contracep-
30 tive drugs or devices, or provided
contraceptive services in accordance
31 with this act; or
32 (f) provide any
incentive, monetary or otherwise, to any health care
33 professional to induce such professional to
withhold from an insured con-
34 traceptive drugs, devices or contraceptive
services.
35 New Sec.
5. (a) Notwithstanding any other provision of this act, a
36 religious employer may request a health
insurance plan contract without
37 coverage for food and drug administration
approved contraceptive meth-
38 ods that are contrary to the religious
employer's religious tenets. If a
39 religious employer so requests, a health
insurance plan contract shall be
40 provided without coverage for contraceptive
methods. This section shall
41 not be construed to deny an enrollee
coverage of, and timely access to,
42 contraceptive methods.
43 (b) For purposes
of this act, a "religious employer" is an entity for
3
1 which each of the following is
true:
2 (1) The
inculcation of religious values is the purpose of the entity;
3 (2) the
entity primarily employs persons who share the religious ten-
4 ets of the entity;
5 (3) The
entity serves primarily persons who share the religious tenets
6 of the entity; and
7 (4) the
entity is a nonprofit organization as described in Section
8 6033(a)(2)(A)i or iii, of the federal
internal revenue code of 1986, as
9 amended.
10 (c) Every
religious employer that invokes the exemption provided
11 under this section shall provide written
notice to prospective enrollees
12 prior to enrollment with the plan, listing
the contraceptive health care
13 services the employer refuses to cover for
religious reasons.
14 Section
6. K.S.A. 1999 Supp. 40-2,103 is hereby amended to read as
15 follows: 40-2,103. The requirements of
K.S.A. 40-2,100, 40-2,101, 40-
16 2,102, 40-2,104, 40-2,105, 40-2,114 and
40-2250, and amendments
17 thereto and K.S.A. 1999 Supp. 40-2,160
and , 40-2,165 through 40-2,170,
18 and section 3, and amendments
thereto, shall apply to all insurance pol-
19 icies, subscriber contracts or certificates
of insurance delivered, renewed
20 or issued for delivery within or outside of
this state or used within this
21 state by or for an individual who resides
or is employed in this state.
22 Sec.
7. K.S.A. 1999 Supp. 40-19c09 is hereby amended to read as
23 follows: 40-19c09. (a) Corporations
organized under the nonprofit med-
24 ical and hospital service corporation act
shall be subject to the provisions
25 of the Kansas general corporation code,
articles 60 to 74, inclusive, of
26 chapter 17 of the Kansas Statutes
Annotated, applicable to nonprofit cor-
27 porations, to the provisions of K.S.A.
40-214, 40-215, 40-216, 40-218, 40-
28 219, 40-222, 40-223, 40-224, 40-225,
40-226, 40-229, 40-230, 40-231, 40-
29 235, 40-236, 40-237, 40-247, 40-248,
40-249, 40-250, 40-251, 40-252,
30 40-254, 40-2,100, 40-2,101, 40-2,102,
40-2,103, 40-2,104, 40-2,105, 40-
31 2,116, 40-2,117, 40-2a01 et seq.,
40-2111 to 40-2116, inclusive, 40-2215
32 to 40-2220, inclusive, 40-2221a, 40-2221b,
40-2229, 40-2230, 40-2250,
33 40-2251, 40-2253, 40-2254, 40-2401 to
40-2421, inclusive, and 40-3301
34 to 40-3313, inclusive, K.S.A. 1999 Supp.
40-2,153, 40-2,154, 40-2,160,
35 40-2,161, 40-2,163, 40-2,164
and , 40-2,165 through 40-2,170, and
section
36 3, and amendments thereto, except as
the context otherwise requires, and
37 shall not be subject to any other
provisions of the insurance code except
38 as expressly provided in this act.
39 (b) No policy,
agreement, contract or certificate issued by a corpo-
40 ration to which this section applies shall
contain a provision which ex-
41 cludes, limits or otherwise restricts
coverage because medicaid benefits
42 as permitted by title XIX of the social
security act of 1965 are or may be
43 available for the same accident or
illness.
4
1
(c) Violation of subsection (b) shall be subject to the
penalties pre-
2 scribed by K.S.A. 40-2407 and
40-2411, and amendments thereto.
3 Sec. 8. K.S.A. 1999 Supp.
40-2,103 and 40-19c09 are hereby
4 repealed.
5 Sec. 9. This act
shall take effect and be in force from and after its
6 publication in the statute book.