Session of 2000
By Committee on Insurance

  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.
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:


  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


  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.


  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.