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Minutes for SB348 - Committee on Financial Institutions and Insurance
Short Title
Establishing electronic delivery as the standard method of delivery for explanation of benefits and member policies of health benefit plans.
Minutes Content for Thu, Feb 8, 2018
Chairperson Longbine opened the meeting by greeting the committee members, conferees, guest presenters and public guests. He opened the hearing on SB348. Eileen Ma, Assistant Revisor of Statutes gave a short overview of the bill.
Sunee Mikle, Director of Government Relations, Blue Cross Blue Shield of Kansas, Inc. (BCBSKS), testified in support of the bill. She related to the committee that passage of SB348 would help BSBSKS further reduce operating costs and assist in directing members' premium dollars toward the health care services they need. She explained that in 2017, BCBSKS mailed out more than 5.4 million explanation of benefits (EOBs) to its members at a cost of approximately $2.7 million. Under current law, the BCBSKS is obligated to mail hard copy versions of insurance policies, summary of benefits, and other coverage documents. SB348 modernizes Kansas law and supports efforts to reduce administrative cost. (Attachment 1)
Melissa Panettiere presented testimony supporting SB348 noting that the banking and auto insurance industries have been moving customers toward electronic statements for years, proving customers are quick to adapt to this form of communication. The total number of EOBs mailed to members was over seven million. One can see how costs add up quickly considering the cost of paper, duplicating, handling, and postage that is involved in the mailing of just one document. A typical EOB can be five or more pages including all the notifications required by the Affordable Care Act (ACA). (Attachment 2)
William Sneed also gave proponent testimony on behalf of Delta Dental of Kansas, which is the largest dental benefits carrier in the state of Kansas. Mr. Sneed also requested a clarifying amendment, a copy of which is attached to his testimony, to enhance the definition of "health plan," which may not include Delta Dental of Kansas and eliminate any potential uncertainty should SB348 be passed. (Attachment 3)
Ms. Mikle, Ms. Panettiere, and Mr. Sneed answered questions from Senators Rogers and Billinger. Chairperson Longbine pointed the committee's attention to the written-only proponent testimony of Clark Shultz and Julie Holmes from the Kansas Insurance Department (Attachment 4) and also from Joshua Keepes, J. D., Regional Director, State Affairs for America's Health Insurance Plans located in Washington, D.C. (Attachment 5)
There being no other proponent, opponent or neutral testimony submitted, and no other discussion or questions, the Chairperson closed the hearing on SB348.
Senator Anthony Hensley asked and was granted by the Chairperson a point of personal privilege. Senator Hensley introduced two senior students shadowing him today, Emma Murphy and Lindlan Scheck, from Madison, Kansas. He pointed to Senator Givens, and introduced him as the Senator representing the students' district.
Senator Dennis Pyle also asked and was granted a point of personal privilege. He introduced a student, Corey Nicely, from Hiawatha, Kansas, who was shadowing Senator Pyle today.
