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Minutes for SB348 - Committee on 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, Mar 15, 2018
Chairperson Jene Vickrey opened the hearing on: SB348.
Eileen Ma, Office of Revisor of Statues, presented a bill brief on SB348. (Attachment 1)
Melissa Panettiere testified in support of the bill. (Attachment 2) Ms. Panettiere stated that in 2017, Blue Cross and Blue Shield of Kansas City mailed to their members 7 million Explanation of Benefits (EOB) documents. The electronic delivery of the exact same information not only provides for lower cost, but also has the ability to enhance the member experience. Ms. Panettiere provided an example of an EOB document sent to their members. (Attachment 3)
Brad Smoot testified in support of the bill. Mr. Smoot testified that SB348 would help Blue Cross and Blue Shield of Kansas, Inc. further reduce operating costs and assist them with directing their members' premium dollars towards the health care services they need. (Attachment 4)
Clark Shultz testified in support of the bill. Mr. Shultz stated that the Kansas Insurance Department recognizes that technology allows for electronic delivery of (EOB) documents, policies and summaries of benefits and that insurance companies doing business in Kansas will recognize savings that may be passed on to policyholders. The department does have consumer protection concerns for those over the age of sixty-five and would suggest an option for individuals to opt-out of electronic delivery. (Attachment 5)
Written testimony in support of the bill was provided by William W. Sneed, Retained Counsel, Delta Dental of Kansas. (Attachment 6)
Representative Jim Kelly asked Melissa Panettiere if members can request a paper EOB. Ms. Panettiere confirmed that will be an option.
Representative John Eplee asked Melissa Panettiere what the percentage was of people who want a paper EOB. She stated that she was not certain of that number.
Representative Cindy Neighbor expressed concern about confidential information being transmitted electronically as email addresses change. Ms. Panettiere responded that they take personal and identifiable information very seriously and have processes in place and would still comply with all of the privacy requirements.
Representative Ken Corbet asked if he understood correctly that once the member requests their documents by mail, they would not have to continue requesting that each time new documents were sent. Melissa Panettiere responded it is correct that the customer will have to only request it one time and all documents would be sent by mail.
Representative Roger Elliot stated that he noticed the member's SSN is not on the EOB, but that the date of birth is. He wanted to know if that would also be on the electronic version of the EOB and if so, why. Ms. Panettiere commented that the electronic and paper EOB will be exactly the same. She did not know why the date of birth was needed on the EOB.
Representative Tim Hodge asked for a short list of the mandatory disclosures. Ms. Panettiere stated that she may not know of all of them, but she does know that there are disclosures for anti-discrimination, language (if translator needed), disability, appeal rights, and grievances. Representative Hodge followed up by asking if written notification of the change over to electronic delivery would be provided. Ms. Panettiere answered that yes, they plan on sending out notices and that the process with new customers will be more seamless with streamlining the process. Representative Hodge asked if they would be against an amendment that required written notice to all current customers before they could move customers over to electronic delivery. Ms. Panettiere said they probably would not be against an amendment requiring written notice before moving current customers over, but would still want the flexibility in terms of what that written notice included and the length of it.
Representative Elizabeth Bishop asked Ms. Panettiere how they plan to acquire the email addresses to convert customers to electronic delivery. Representative Bishop also made a suggestion that perhaps for a year or two after this is implemented that they provide a check box on the EOB that still gives the customer an option to receive paper documents. Eileen Ma responded to Representative Bishop's question regarding obtaining email addresses by referring to section 2, subsection [8](a) of the bill.
Chairperson Vickrey stated there were no listed opponents and asked if there was anyone there that opposed the bill. Seeing none, he closed the hearing.
