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AN ACT relating to coverage for cancer detection. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF SUBTITLE 17A OF KRS CHAPTER 304 3
IS CREATED TO READ AS FOLLOWS: 4
(1) As used in this section, "cancer screening, test, or procedure": 5
(a) Means any screening, test, or procedure performed for the purpose of 6
detecting cancer, including but not limited to lung, breast, cervical, prostate, 7
and colorectal cancer, that occurs prior to diagnosis; and 8
(b) Includes follow-up screenings, tests, and procedures that occur prior to 9
diagnosis. 10
(2) A health insurance policy, certificate, plan, or contract, including but not limited 11
to a health benefit plan, that provides medical or surgical benefits with respect to 12
cancer shall provide coverage for any cancer screening, test, or procedure that is: 13
(a) Consistent with nationally recognized clinical practice guidelines; and 14
(b) Ordered or prescribed by a health care provider legally authorized to order 15
or prescribe the cancer screening, test, or procedure. 16
(3) (a) The coverage required under this section shall not be subject to: 17
1. Utilization management requirements, including prior authorization; 18
or 19
2. Except as provided in paragraph (b) of this subsection, any deductible, 20
coinsurance, copayment, or other cost-sharing requirement. 21
(b) If the application of any requirement of paragraph (a)2. of this subsection 22
would be the sole cause of a health insurance policy's, certificate's, plan's, 23
or contract's failure to qualify as a Health Savings Account-qualified High 24
Deductible Health Plan under 26 U.S.C. sec. 223, as amended, then the 25
requirement shall not apply to that health insurance policy, certificate, plan, 26
or contract until the minimum deductible under 26 U.S.C. sec. 223, as 27 UNOFFICIAL COPY 23 RS BR 61
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amended, is satisfied. 1
(4) If the application of any requirement of subsection (2) of this section to a health 2
insurance policy, certificate, plan, or contract results in a determination that the 3
state must make payments to defray the cost of the requirement under 42 U.S.C. 4
sec. 18031(d)(3), as amended, then the requirement shall not apply to that policy, 5
certificate, plan, or contract until the cost defrayal requirements are no longer 6
applicable. 7
(5) (a) This section shall not be construed to limit coverage: 8
1. Provided under a health insurance policy, certificate, plan, or 9
contract; or 10
2. Required under any other law. 11
(b) In the case of a conflict between this section and any other law, this section 12
shall control unless application of this section would result in a reduction of 13
coverage or benefits for any insured. 14
SECTION 2. A NEW SECTION OF SUBTITLE 17C OF KRS CHAPTER 304 15
IS CREATED TO READ AS FOLLOWS: 16
Section 1 of this Act shall apply to limited health service benefit plans, including any 17
limited health service contract, as defined in KRS 304.38A-010. 18
SECTION 3. A NEW SECTION OF SUBTITLE 38A OF KRS CHAPTER 304 19
IS CREATED TO READ AS FOLLOWS: 20
Limited health service organizations shall comply with Section 1 of this Act. 21
Section 4. KRS 205.522 is amended to read as follows: 22
(1) The Department for Medicaid Services and any managed care organization 23
contracted to provide Medicaid benefits pursuant to this chapter shall comply with 24
the provisions of Section 1 of this Act and KRS 304.17A-163, 304.17A-1631, 25
304.17A-167, 304.17A-235, 304.17A-257, 304.17A-259, 304.17A-515, 304.17A-26
580, 304.17A-600, 304.17A-603, 304.17A-607, and 304.17A-740 to 304.17A-743, 27 UNOFFICIAL COPY 23 RS BR 61
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as applicable. 1
(2) A managed care organization contracted to provide Medicaid benefits pursuant to 2
this chapter shall comply with the reporting requirements of KRS 304.17A-732. 3
Section 5. KRS 164.2871 is amended to read as follows: 4
(1) The governing board of each state postsecondary educational institution is 5
authorized to purchase liability insurance for the protection of the individual 6
members of the governing board, faculty, and staff of such institutions from liability 7
for acts and omissions committed in the course and scope of the individual's 8
employment or service. Each institution may purchase the type and amount of 9
liability coverage deemed to best serve the interest of such institution. 10
(2) All retirement annuity allowances accrued or accruing to any employee of a state 11
postsecondary educational institution through a retirement program sponsored by 12
the state postsecondary educational institution are hereby exempt from any state, 13
county, or municipal tax, and shall not be subject to execution, attachment, 14
garnishment, or any other process whatsoever, nor shall any assignment thereof be 15
enforceable in any court. Except retirement benefits accrued or accruing to any 16
employee of a state postsecondary educational institution through a retirement 17
program sponsored by the state postsecondary educational institution on or after 18
January 1, 1998, shall be subject to the tax imposed by KRS 141.020, to the extent 19
provided in KRS 141.010 and 141.0215. 20
(3) Except as provided in KRS Chapter 44, the purchase of liability insurance for 21
members of governing boards, faculty and staff of institutions of higher education 22
in this state shall not be construed to be a waiver of sovereign immunity or any 23
other immunity or privilege. 24
(4) The governing board of each state postsecondary education institution is authorized 25
to provide a self-insured employer group health plan to its employees, which plan 26
shall: 27 UNOFFICIAL COPY 23 RS BR 61
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(a) Conform to the requirements of Subtitle 32 of KRS Chapter 304; and 1
(b) Except as provided in subsection (5) of this section, be exempt from 2
conformity with Subtitle 17A of KRS Chapter 304. 3
(5) A self-insured employer group health plan provided by the governing board of a 4
state postsecondary education institution to its employees shall comply with: 5
(a) KRS 304.17A-163 and 304.17A-1631; and 6
(b) Section 1 of this Act. 7
Section 6. KRS 18A.225 is amended to read as follows: 8
(1) (a) The term "employee" for purposes of this section means: 9
1. Any person, including an elected public official, who is regularly 10
employed by any department, office, board, agency, or branch of state 11
government; or by a public postsecondary educational institution; or by 12
any city, urban-county, charter county, county, or consolidated local 13
government, whose legislative body has opted to participate in the state-14
sponsored health insurance program pursuant to KRS 79.080; and who 15
is either a contributing member to any one (1) of the retirement systems 16
administered by the state, including but not limited to the Kentucky 17
Retirement Systems, County Employees Retirement System, Kentucky 18
Teachers' Retirement System, the Legislators' Retirement Plan, or the 19
Judicial Retirement Plan; or is receiving a contractual contribution from 20
the state toward a retirement plan; or, in the case of a public 21
postsecondary education institution, is an individual participating in an 22
optional retirement plan authorized by KRS 161.567; or is eligible to 23
participate in a retirement plan established by an employer who ceases 24
participating in the Kentucky Employees Retirement System pursuant to 25
KRS 61.522 whose employees participated in the health insurance plans 26
administered by the Personnel Cabinet prior to the employer's effective 27 UNOFFICIAL COPY 23 RS BR 61
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cessation date in the Kentucky Employees Retirement System; 1
2. Any certified or classified employee of a local board of education or a 2
public charter school as defined in KRS 160.1590; 3
3. Any elected member of a local board of education; 4
4. Any person who is a present or future recipient of a retirement 5
allowance from the Kentucky Retirement Systems, County Employees 6
Retirement System, Kentucky Teachers' Retirement System, the 7
Legislators' Retirement Plan, the Judicial Retirement Plan, or the 8
Kentucky Community and Technical College System's optional 9
retirement plan authorized by KRS 161.567, except that a person who is 10
receiving a retirement allowance and who is age sixty-five (65) or older 11
shall not be included, with the exception of persons covered under KRS 12
61.702(2)(b)3. and 78.5536(2)(b)3., unless he or she is actively 13
employed pursuant to subparagraph 1. of this paragraph; and 14
5. Any eligible dependents and beneficiaries of participating employees 15
and retirees who are entitled to participate in the state-sponsored health 16
insurance program; 17
(b) The term "health benefit plan" for the purposes of this section means a health 18
benefit plan as defined in KRS 304.17A-005; 19
(c) The term "insurer" for the purposes of this section means an insurer as defined 20
in KRS 304.17A-005; and 21
(d) The term "managed care plan" for the purposes of this section means a 22
managed care plan as defined in KRS 304.17A-500. 23
(2) (a) The secretary of the Finance and Administration Cabinet, upon the 24
recommendation of the secretary of the Personnel Cabinet, shall procure, in 25
compliance with the provisions of KRS 45A.080, 45A.085, and 45A.090, 26
from one (1) or more insurers authorized to do business in this state, a group 27 UNOFFICIAL COPY 23 RS BR 61
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health benefit plan that may include but not be limited to health maintenance 1
organization (HMO), preferred provider organization (PPO), point of service 2
(POS), and exclusive provider organization (EPO) benefit plans 3
encompassing all or any class or classes of employees. With the exception of 4
employers governed by the provisions of KRS Chapters 16, 18A, and 151B, 5
all employers of any class of employees or former employees shall enter into 6
a contract with the Personnel Cabinet prior to including that group in the state 7
health insurance group. The contracts shall include but not be limited to 8
designating the entity responsible for filing any federal forms, adoption of 9
policies required for proper plan administration, acceptance of the contractual 10
provisions with health insurance carriers or third-party administrators, and 11
adoption of the payment and reimbursement methods necessary for efficient 12
administration of the health insurance program. Health insurance coverage 13
provided to state employees under this section shall, at a minimum, contain 14
the same benefits as provided under Kentucky Kare Standard as of January 1, 15
1994, and shall include a mail-order drug option as provided in subsection 16
(13) of this section. All employees and other persons for whom the health care 17
coverage is provided or made available shall annually be given an option to 18
elect health care coverage through a self-funded plan offered by the 19
Commonwealth or, if a self-funded plan is not available, from a list of 20
coverage options determined by the competitive bid process under the 21
provisions of KRS 45A.080, 45A.085, and 45A.090 and made available 22
during annual open enrollment. 23
(b) The policy or policies shall be approved by the commissioner of insurance 24
and may contain the provisions the commissioner of insurance approves, 25
whether or not otherwise permitted by the insurance laws. 26
(c) Any carrier bidding to offer health care coverage to employees shall agree to 27 UNOFFICIAL COPY 23 RS BR 61
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provide coverage to all members of the state group, including active 1
employees and retirees and their eligible covered dependents and 2
beneficiaries, within the county or counties specified in its bid. Except as 3
provided in subsection (20) of this section, any carrier bidding to offer health 4
care coverage to employees shall also agree to rate all employees as a single 5
entity, except for those retirees whose former employers insure their active 6
employees outside the state-sponsored health insurance program and as 7
otherwise provided in KRS 61.702(2)(b)3.b. and 78.5536(2)(b)3.b. 8
(d) Any carrier bidding to offer health care coverage to employees shall agree to 9
provide enrollment, claims, and utilization data to the Commonwealth in a 10
format specified by the Personnel Cabinet with the understanding that the data 11
shall be owned by the Commonwealth; to provide data in an electronic form 12
and within a time frame specified by the Personnel Cabinet; and to be subject 13
to penalties for noncompliance with data reporting requirements as specified 14
by the Personnel Cabinet. The Personnel Cabinet shall take strict precautions 15
to protect the confidentiality of each individual employee; however, 16
confidentiality assertions shall not relieve a carrier from the requirement of 17
providing stipulated data to the Commonwealth. 18
(e) The Personnel Cabinet shall develop the necessary techniques and capabilities 19
for timely analysis of data received from carriers and, to the extent possible, 20
provide in the request-for-proposal specifics relating to data requirements, 21
electronic reporting, and penalties for noncompliance. The Commonwealth 22
shall own the enrollment, claims, and utilization data provided by each carrier 23
and shall develop methods to protect the confidentiality of the individual. The 24
Personnel Cabinet shall include in the October annual report submitted 25
pursuant to the provisions of KRS 18A.226 to the Governor, the General 26
Assembly, and the Chief Justice of the Supreme Court, an analysis of the 27 UNOFFICIAL COPY 23 RS BR 61
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financial stability of the program, which shall include but not be limited to 1
loss ratios, methods of risk adjustment, measurements of carrier quality of 2
service, prescription coverage and cost management, and statutorily required 3
mandates. If state self-insurance was available as a carrier option, the report 4
also shall provide a detailed financial analysis of the self-insurance fund 5
including but not limited to loss ratios, reserves, and reinsurance agreements. 6
(f) If any agency participating in the state-sponsored employee health insurance 7
program for its active employees terminates participation and there is a state 8
appropriation for the employer's contribution for active employees' health 9
insurance coverage, then neither the agency nor the employees shall receive 10
the state-funded contribution after termination from the state-sponsored 11
employee health insurance program. 12
(g) Any funds in flexible spending accounts that remain after all reimbursements 13
have been processed shall be transferred to the credit of the state-sponsored 14
health insurance plan's appropriation account. 15
(h) Each entity participating in the state-sponsored health insurance program shall 16
provide an amount at least equal to the state contribution rate for the employer 17
portion of the health insurance premium. For any participating entity that used 18
the state payroll system, the employer contribution amount shall be equal to 19
but not greater than the state contribution rate. 20
(3) The premiums may be paid by the policyholder: 21
(a) Wholly from funds contributed by the employee, by payroll deduction or 22
otherwise; 23
(b) Wholly from funds contributed by any department, board, agency, public 24
postsecondary education institution, or branch of state, city, urban-county, 25
charter county, county, or consolidated local government; or 26
(c) Partly from each, except that any premium due for health care coverage or 27 UNOFFICIAL COPY 23 RS BR 61
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dental coverage, if any, in excess of the premium amount contributed by any 1
department, board, agency, postsecondary education institution, or branch of 2
state, city, urban-county, charter county, county, or consolidated local 3
government for any other health care coverage shall be paid by the employee. 4
(4) If an employee moves his or her place of residence or employment out of the 5
service area of an insurer offering a managed health care plan, under which he or 6
she has elected coverage, into either the service area of another managed health care 7
plan or into an area of the Commonwealth not within a managed health care plan 8
service area, the employee shall be given an option, at the time of the move or 9
transfer, to change his or her coverage to another health benefit plan. 10
(5) No payment of premium by any department, board, agency, public postsecondary 11
educational institution, or branch of state, city, urban-county, charter county, 12
county, or consolidated local government shall constitute compensation to an 13
insured employee for the purposes of any statute fixing or limiting the 14
compensation of such an employee. Any premium or other expense incurred by any 15
department, board, agency, public postsecondary educational institution, or branch 16
of state, city, urban-county, charter county, county, or consolidated local 17
government shall be considered a proper cost of administration. 18
(6) The policy or policies may contain the provisions with respect to the class or classes 19
of employees covered, amounts of insurance or coverage for designated classes or 20
groups of employees, policy options, terms of eligibility, and continuation of 21
insurance or coverage after retirement. 22
(7) Group rates under this section shall be made available to the disabled child of an 23
employee regardless of the child's age if the entire premium for the disabled child's 24
coverage is paid by the state employee. A child shall be considered disabled if he or 25
she has been determined to be eligible for federal Social Security disability benefits. 26
(8) The health care contract or contracts for employees shall be entered into for a 27 UNOFFICIAL COPY 23 RS BR 61
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period of not less than one (1) year. 1
(9) The secretary shall appoint thirty-two (32) persons to an Advisory Committee of 2
State Health Insurance Subscribers to advise the secretary or the secretary's 3
designee regarding the state-sponsored health insurance program for employees. 4
The secretary shall appoint, from a list of names submitted by appointing 5
authorities, members representing school districts from each of the seven (7) 6
Supreme Court districts, members representing state government from each of the 7
seven (7) Supreme Court districts, two (2) members representing retirees under age 8
sixty-five (65), one (1) member representing local health departments, two (2) 9
members representing the Kentucky Teachers' Retirement System, and three (3) 10
members at large. The secretary shall also appoint two (2) members from a list of 11
five (5) names submitted by the Kentucky Education Association, two (2) members 12
from a list of five (5) names submitted by the largest state employee organization of 13
nonschool state employees, two (2) members from a list of five (5) names submitted 14
by the Kentucky Association of Counties, two (2) members from a list of five (5) 15
names submitted by the Kentucky League of Cities, and two (2) members from a 16
list of names consisting of five (5) names submitted by each state employee 17
organization that has two thousand (2,000) or more members on state payroll 18
deduction. The advisory committee shall be appointed in January of each year and 19
shall meet quarterly. 20
(10) Notwithstanding any other provision of law to the contrary, the policy or policies 21
provided to employees pursuant to this section shall not provide coverage for 22
obtaining or performing an abortion, nor shall any state funds be used for the 23
purpose of obtaining or performing an abortion on behalf of employees or their 24
dependents. 25
(11) Interruption of an established treatment regime with maintenance drugs shall be 26
grounds for an insured to appeal a formulary change through the established appeal 27 UNOFFICIAL COPY 23 RS BR 61
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procedures approved by the Department of Insurance, if the physician supervising 1
the treatment certifies that the change is not in the best interests of the patient. 2
(12) Any employee who is eligible for and elects to participate in the state health 3
insurance program as a retiree, or the spouse or beneficiary of a retiree, under any 4
one (1) of the state-sponsored retirement systems shall not be eligible to receive the 5
state health insurance contribution toward health care coverage as a result of any 6
other employment for which there is a public employer contribution. This does not 7
preclude a retiree and an active employee spouse from using both contributions to 8
the extent needed for purchase of one (1) state sponsored health insurance policy 9
for that plan year. 10
(13) (a) The policies of health insurance coverage procured under subsection (2) of 11
this section shall include a mail-order drug option for maintenance drugs for 12
state employees. Maintenance drugs may be dispensed by mail order in 13
accordance with Kentucky law. 14
(b) A health insurer shall not discriminate against any retail pharmacy located 15
within the geographic coverage area of the health benefit plan and that meets 16
the terms and conditions for participation established by the insurer, including 17
price, dispensing fee, and copay requirements of a mail-order option. The 18
retail pharmacy shall not be required to dispense by mail. 19
(c) The mail-order option shall not permit the dispensing of a controlled 20
substance classified in Schedule II. 21
(14) The policy or policies provided to state employees or their dependents pursuant to 22
this section shall provide coverage for obtaining a hearing aid and acquiring hearing 23
aid-related services for insured individuals under eighteen (18) years of age, subject 24
to a cap of one thousand four hundred dollars ($1,400) every thirty-six (36) months 25
pursuant to KRS 304.17A-132. 26
(15) Any policy provided to state employees or their dependents pursuant to this section 27 UNOFFICIAL COPY 23 RS BR 61
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shall provide coverage for the diagnosis and treatment of autism spectrum disorders 1
consistent with KRS 304.17A-142. 2
(16) Any policy provided to state employees or their dependents pursuant to this section 3
shall provide coverage for obtaining amino acid-based elemental formula pursuant 4
to KRS 304.17A-258. 5
(17) If a state employee's residence and place of employment are in the same county, 6
and if the hospital located within that county does not offer surgical services, 7
intensive care services, obstetrical services, level II neonatal services, diagnostic 8
cardiac catheterization services, and magnetic resonance imaging services, the 9
employee may select a plan available in a contiguous county that does provide 10
those services, and the state contribution for the plan shall be the amount available 11
in the county where the plan selected is located. 12
(18) If a state employee's residence and place of employment are each located in 13
counties in which the hospitals do not offer surgical services, intensive care 14
services, obstetrical services, level II neonatal services, diagnostic cardiac 15
catheterization services, and magnetic resonance imaging services, the employee 16
may select a plan available in a county contiguous to the county of residence that 17
does provide those services, and the state contribution for the plan shall be the 18
amount available in the county where the plan selected is located. 19
(19) The Personnel Cabinet is encouraged to study whether it is fair and reasonable and 20
in the best interests of the state group to allow any carrier bidding to offer health 21
care coverage under this section to submit bids that may vary county by county or 22
by larger geographic areas. 23
(20) Notwithstanding any other provision of this section, the bid for proposals for health 24
insurance coverage for calendar year 2004 shall include a bid scenario that reflects 25
the statewide rating structure provided in calendar year 2003 and a bid scenario that 26
allows for a regional rating structure that allows carriers to submit bids that may 27 UNOFFICIAL COPY 23 RS BR 61
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vary by region for a given product offering as described in this subsection: 1
(a) The regional rating bid scenario shall not include a request for bid on a 2
statewide option; 3
(b) The Personnel Cabinet shall divide the state into geographical regions which 4
shall be the same as the partnership regions designated by the Department for 5
Medicaid Services for purposes of the Kentucky Health Care Partnership 6
Program established pursuant to 907 KAR 1:705; 7
(c) The request for proposal shall require a carrier's bid to include every county 8
within the region or regions for which the bid is submitted and include but not 9
be restricted to a preferred provider organization (PPO) option; 10
(d) If the Personnel Cabinet accepts a carrier's bid, the cabinet shall award the 11
carrier all of the counties included in its bid within the region. If the Personnel 12
Cabinet deems the bids submitted in accordance with this subsection to be in 13
the best interests of state employees in a region, the cabinet may award the 14
contract for that region to no more than two (2) carriers; and 15
(e) Nothing in this subsection shall prohibit the Personnel Cabinet from including 16
other requirements or criteria in the request for proposal. 17
(21) Any fully insured health benefit plan or self-insured plan issued or renewed on or 18
after July 12, 2006, to public employees pursuant to this section which provides 19
coverage for services rendered by a physician or osteopath duly licensed under KRS 20
Chapter 311 that are within the scope of practice of an optometrist duly licensed 21
under the provisions of KRS Chapter 320 shall provide the same payment of 22
coverage to optometrists as allowed for those services rendered by physicians or 23
osteopaths. 24
(22) Any fully insured health benefit plan or self-insured plan issued or renewed to 25
public employees pursuant to this section shall comply with: 26
(a) KRS 304.12-237; 27 UNOFFICIAL COPY 23 RS BR 61
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(b) KRS 304.17A-270 and 304.17A-525; 1
(c) KRS 304.17A-600 to 304.17A-633; 2
(d) KRS 205.593; 3
(e) KRS 304.17A-700 to 304.17A-730; 4
(f) KRS 304.14-135; 5
(g) KRS 304.17A-580 and 304.17A-641; 6
(h) KRS 304.99-123; 7
(i) KRS 304.17A-138; 8
(j) KRS 304.17A-148; 9
(k) KRS 304.17A-163 and 304.17A-1631;[ and] 10
(l) Section 1 of this Act; and 11
(m) Administrative regulations promulgated pursuant to statutes listed in this 12
subsection. 13
Section 7. Sections 1, 5, and 6 of this Act apply to policies, certificates, plans, 14
or contracts issued or renewed on or after January 1, 2024. 15
Section 8. (1) If the Department of Insurance determines that the state 16
would, or would likely, be required to make payments to defray the cost of any 17
requirements under Section 1 of this Act, as provided under 42 U.S.C. sec. 18031(d)(3), 18
as amended, then the department shall, within 90 days of the effective date of this section, 19
apply for a waiver under 42 U.S.C. sec. 18052, as amended, or any other applicable 20
federal law of all or any of the cost defrayal requirements. 21
(2) The application required under this section: 22
(a) Shall comply with the requirements of federal law for obtaining a waiver; and 23
(b) May propose changes to the state's EHB-benchmark plan, as defined in 45 24
C.F.R. 156.20, that are not in conflict with existing state law. 25
Section 9. If the Cabinet for Health and Family Services determines that a 26
waiver or other authorization from a federal agency is necessary to implement Section 4 27 UNOFFICIAL COPY 23 RS BR 61
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of this Act for any reason, including the loss of federal funds, the cabinet shall, within 90 1
days of the effective date of this section, request the waiver or authorization, and may 2
only delay implementation of those provisions for which a waiver or authorization was 3
deemed necessary until the waiver or authorization is granted. 4
Section 10. Sections 1 to 7 of this Act take effect January 1, 2024. 5