Ch. 184             1997 Session Laws of Kansas             1499

An Act concerning the pharmacy act of the state of Kansas; amending K.S.A. 40-2123 and
K.S.A. 65-1643, as amended by section 3 of 1997 Senate Bill No. 197, and repealing the
existing sections.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 40-2123 is hereby amended to read as follows:
40-2123. (a) The plan shall offer coverage to every eligible person pur-
suant to which such person's covered expenses shall be indemnified or
reimbursed subject to the provisions of K.S.A. 40-2124 and amendments
thereto.

(b) Except for those expenses set forth in subsection (c) of this sec-
tion, expenses covered under the plan shall include expenses for:

(1) Services of persons licensed to practice medicine and surgery
which are medically necessary for the diagnosis or treatment of injuries,
illnesses or conditions;

(2) services of advanced registered nurse practitioners who hold a
certificate of qualification from the board of nursing to practice in an
expanded role or physicians assistants acting under the direction of a
responsible physician when such services are provided at the direction of
a person licensed to practice medicine and surgery and meet the require-
ments of paragraph (b)(1) above;

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(3) services of licensed dentists when such procedures would other-
wise be performed by persons licensed to practice medicine and surgery;

(4) emergency care, surgery and treatment of acute episodes of illness
or disease as defined in the plan and provided in a general hospital or
ambulatory surgical center as such terms are defined in K.S.A. 65-425,
and amendments thereto;

(5) medically necessary diagnostic laboratory and x-ray services;

(6) drugs and controlled substances prescribed by a practitioner, as
defined in subsection (t) (x) of K.S.A. 65-1626 and amendments thereto.
Coverage for outpatient prescriptions shall be subject to a mandatory 50%
coinsurance provision, and coverage for prescriptions administered to in-
patients shall be subject to a coinsurance provision as established in the
plan; and

(7) subject to the approval of the commissioner, the board shall also
review and recommend the inclusion of coverage for mental health serv-
ices and such other primary and preventive health care services as the
board determines would not materially impair affordability of the plan.

(c) Expenses not covered under the plan shall include expenses for:

(1) Illness or injury due to an act of war;

(2) services rendered prior to the effective date of coverage under
this plan for the person on whose behalf the expense is incurred;

(3) services for which no charge would be made in the absence of
insurance or for which the insured bears no legal obligation to pay;

(4) (A) services or charges incurred by the insured which are oth-
erwise covered by:

(i) Medicare or state law or programs;

(ii) medical services provided for members of the United States
armed forces and their dependents or for employees of such armed
forces;

(iii) military service-connected disability benefits;

(iv) other benefit or entitlement programs provided for by the laws
of the United States (except title XIX of the social security act of 1965);

(v) workers compensation or similar programs addressing injuries,
diseases, or conditions incurred in the course of employment covered by
such programs;

(vi) benefits payable without regard to fault pursuant to any motor
vehicle or other liability insurance policy or equivalent self-insurance.

(B) This exclusion shall not apply to services or charges which exceed
the benefits payable under the applicable programs listed above and
which are otherwise eligible for payment under this section.

(5) Services the provision of which is not within the scope of the
license or certificate of the institution or individual rendering such serv-
ice;

(6) that part of any charge for services or articles rendered or pre-

Ch. 184             1997 Session Laws of Kansas             1501

scribed which exceeds the rate established by K.S.A. 40-2131 and amend-
ments thereto for such services;

(7) services or articles not medically necessary;

(8) care which is primarily custodial or domiciliary in nature;

(9) cosmetic surgery unless provided as the result of an injury or
medically necessary surgical procedure;

(10) eye surgery if corrective lenses would alleviate the problem;

(11) experimental services or supplies not generally recognized as the
normal mode of treatment for the illness or injury involved;

(12) service of a blood donor and any fee for failure of the insured
to replace the first three pints of blood provided in each calendar year;
and

(13) personal supplies or services provided by a health care facility or
any other nonmedical or nonprescribed supply or service.

(d) Except as expressly provided for in this act, no law requiring the
coverage or the offer of coverage of a health care service or benefit shall
apply to the plan.

(e) A plan may incorporate provisions that will direct covered persons
to the most appropriate lowest cost health care provider available.

Sec. 2. K.S.A. 65-1643, as amended by section 3 of 1997 Senate Bill
No. 197, is hereby amended to read as follows: 65-1643. On and after the
effective date of this act, it shall be unlawful:

(a) For any person to operate, maintain, open or establish any phar-
macy within this state without first having obtained a registration from
the board. Each application for registration of a pharmacy shall indicate
the person or persons desiring the registration, including the pharmacist
in charge, as well as the location, including the street name and number,
and such other information as may be required by the board to establish
the identity and exact location of the pharmacy. The issuance of a regis-
tration for any pharmacy shall also have the effect of permitting such
pharmacy to operate as a retail dealer without requiring such pharmacy
to obtain a retail dealer's permit. On evidence satisfactory to the board:
(1) That the pharmacy for which the registration is sought will be con-
ducted in full compliance with the law and the rules and regulations of
the board; (2) that the location and appointments of the pharmacy are
such that it can be operated and maintained without endangering the
public health or safety; (3) that the pharmacy will be under the supervision
of a pharmacist, a registration shall be issued to such persons as the board
shall deem qualified to conduct such a pharmacy.

(b) For any person to manufacture within this state any drugs except
under the personal and immediate supervision of a pharmacist or such
other person or persons as may be approved by the board after an inves-
tigation and a determination by the board that such person or persons is
qualified by scientific or technical training or experience to perform such

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duties of supervision as may be necessary to protect the public health and
safety; and no person shall manufacture any such drugs without first ob-
taining a registration so to do from the board. Such registration shall be
subject to such rules and regulations with respect to requirements, sani-
tation and equipment, as the board may from time to time adopt for the
protection of public health and safety.

(c) For any person to distribute at wholesale any drugs without first
obtaining a registration so to do from the board.

(d) For any person to sell or offer for sale at public auction or private
sale in a place where public auctions are conducted, any drugs without
first having obtained a registration from the board so to do, and it shall
be necessary to obtain the permission of the board in every instance where
any of the products covered by this section are to be sold or offered for
sale.

(e) For any person to in any manner distribute or dispense samples
of any drugs without first having obtained a permit from the board so to
do, and it shall be necessary to obtain permission from the board in every
instance where the samples are to be distributed or dispensed. Nothing
in this subsection shall be held to regulate or in any manner interfere
with the furnishing of samples of drugs to duly licensed practitioners, to
pharmacists or to medical care facilities.

(f) Except as otherwise provided in this subsection (f), for any person
operating a store or place of business to sell, offer for sale or distribute
any drugs to the public without first having obtained a registration or
permit from the board authorizing such person so to do. No retail dealer
who sells 12 or fewer different nonprescription drug products shall be
required to obtain a retail dealer's permit under the pharmacy act of the
state of Kansas or to pay a retail dealer new permit or permit renewal fee
under such act. It shall be lawful for a retail dealer who is the holder of
a valid retail dealer's permit issued by the board or for a retail dealer who
sells 12 or fewer different nonprescription drug products to sell and dis-
tribute nonprescription drugs which are prepackaged, fully prepared by
the manufacturer or distributor for use by the consumer and labeled in
accordance with the requirements of the state and federal food, drug and
cosmetic acts. Such nonprescription drugs shall not include: (1) A con-
trolled substance; (2) a drug product the label of which is required to
bear substantially the statement: ``Caution: Federal law prohibits dis-
pensing without prescription''; or (3) a drug product intended for human
use by hypodermic injection; but such a retail dealer shall not be author-
ized to display any of the words listed in subsection (s) (u) of K.S.A. 65-
1626 and amendments thereto, for the designation of a pharmacy or drug-
store.

(g) For any person to sell any drugs manufactured and sold only in
the state of Kansas, unless the label and directions on such drugs shall
first have been approved by the board.

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(h) For any person to operate an institutional drug room without first
having obtained a registration to do so from the board. Such registration
shall be subject to the provisions of K.S.A. 65-1637a and amendments
thereto and any rules and regulations adopted pursuant thereto.

(i) For any person to be a pharmacy student without first obtaining
a registration to do so from the board, in accordance with rules and reg-
ulations adopted by the board, and paying a pharmacy student registration
fee of $25 to the board.

Sec. 3. K.S.A. 40-2123 and K.S.A. 65-1643, as amended by section 3
of 1997 Senate Bill No. 197, are hereby repealed.

Sec. 4. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 15, 1997.