Kentucky 2024 2024 Regular Session

Kentucky House Bill HB115 Chaptered / Bill

                    CHAPTER 97 
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CHAPTER 97 
( HB 115 ) 
AN ACT relating to coverage for breast examinations. 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 
Section 1.   KRS 304.17-316 is amended to read as follows: 
(1) As used in this section: 
(a) "Cost-sharing requirements" means any: 
1. Deductible, coinsurance, or copayment; or 
2. Out-of-pocket expense imposed upon an insured that is similar to an expense referenced in 
subparagraph 1. of this paragraph; 
(b) 1. "Diagnostic breast examination" means a medically necessary and appropriate examination 
of the breast that is used to evaluate an abnormality seen or suspected from, or detected by, a 
screening examination for breast cancer or another means of examination. 
2. As used in subparagraph 1. of this paragraph, "examination of the breast" includes but is not 
limited to an examination using diagnostic mammography, breast magnetic resonance 
imaging, or breast ultrasound; 
(c) 1. [The term ]"Mammogram" means[shall mean] an X-ray examination of the breast, with at least 
two (2) views of each breast and with an average radiation exposure at the current 
recommended level as set forth in guidelines of the American College of Radiology, using 
equipment dedicated specifically for mammography, including[,] but not limited to:[,] 
a. The X-ray tube, filter, compression device, screens, film, and cassettes;[, with two (2) 
views of each breast and with an average radiation exposure at the current recommended 
level as set forth in guidelines of the American College of Radiology, and] 
b. Digital mammography; and[ including ] 
c. Breast tomosynthesis. 
2. As used in subparagraph 1. of this paragraph,[The term] "breast tomosynthesis" means a 
radiologic procedure that involves the acquisition of projection images over the stationary breast 
to produce cross-sectional digital three-dimensional images of the breast; and 
(d) 1. "Supplemental breast examination" means a medically necessary and appropriate 
examination of the breast that is: 
a. Used to screen for breast cancer when there is no abnormality seen or suspected; and 
b. Based on personal or family medical history, or additional factors, that may increase 
the individual's risk of breast cancer. 
2. As used in subparagraph 1. of this paragraph, "examination of the breast" includes but is not 
limited to: 
a. A mammogram; and 
b. An examination using breast magnetic resonance imaging or breast ultrasound. 
(2) [(a) ]Subject to subsection (3) of this section and except as otherwise provided in subsection (4) of this 
section, a[all insurers issuing individual] health insurance [policies] policy, plan, certificate, or contract 
issued, renewed, or delivered in this Commonwealth: 
(a) That provides[provide] coverage on an expense-incurred basis for surgical services for a mastectomy[ 
and that are delivered, issued for delivery, amended, or renewed on or after October 15, 1990,] shall 
also provide coverage for:  ACTS OF THE GENERAL ASSEMBLY 2 
1. a. Low-dose mammography screening for persons who have no sign or symptom of breast 
cancer[ and when performed on dedicated equipment which meets the guidelines 
established by the American College of Radiology and] upon self-referral or[ on] referral 
by a health care practitioner acting within the scope of the practitioner's licensure. 
b. The coverage required under this subparagraph may be limited to the following:[shall 
make available] 
i. One (1)[ screening] mammogram for[to] persons ages[age] thirty-five (35) years 
through thirty-nine (39) years; 
ii. One (1) mammogram every two (2) years for persons ages forty (40) years through 
forty-nine (49) years;[ and] 
iii. One (1) mammogram per year for persons ages[a person] fifty (50) years[ of age] 
and over; and[ may be limited to ] 
iv. A benefit of fifty dollars ($50) per screening mammogram. 
c. The coverage required under this subparagraph shall be subject to[Any] deductibles and 
coinsurance that are[factors shall be] no less favorable than the deductibles and 
coinsurance for coverage for physical illness generally; and[.] 
2.[(b)] a. [All insurers issuing individual health insurance policies in this Commonwealth that 
provide coverage on an expense-incurred basis for surgical services for a mastectomy and 
that are delivered, issued for delivery, amended, or renewed on or after July 14, 2000, 
shall also provide coverage for ]Mammograms[, performed on dedicated equipment that 
meets the guidelines established by the American College of Radiology,] for any 
insured[covered person], regardless of age, who has been diagnosed with breast disease 
upon referral by a health care practitioner acting within the scope of the practitioner's 
licensure. 
b. The coverage required[provided] under this subparagraph[paragraph] shall be subject to 
the same annual deductibles or coinsurance established for other coverages within the 
policy; 
(b) Shall not impose any cost-sharing requirements for any diagnostic breast examination or 
supplemental breast examination that is covered under the policy, plan, certificate, or contract; and 
(c) Shall provide any coverage not otherwise required under this section, including coverage with 
respect to restrictions on cost-sharing requirements, for breast examinations, including 
mammograms, that is required for that policy, plan, certificate, or contract under federal law. 
(3) The coverage required under subsection (2)(a) of this section shall be limited to 
mammograms:[mammogram shall be] 
(a) Performed by a radiographer: 
1. Licensed under KRS Chapter 311B;[Kentucky State Certified General Certificate Radiographer] 
or 
2. Certified by the[an] American Registry of Radiologic Technologists;[Technology Registered 
Radiographer, ] 
(b) Interpreted by a qualified radiologist;[, and ] 
(c) Performed under the direction of a person licensed to practice medicine and certified by the American 
Board of Radiology;[.] 
(d) Performed by a[The] facility[ performing the examination] and ordered by a[the] health care 
practitioner that follow[ who ordered it shall follow] federal laws relating to the notification of 
mammography exam results and maintaining medical records;[. 
(4) Effective July 15, 1990, any facility in which mammograms are performed for reimbursement under this 
section, KRS 304.18-098, 304.32-1591, or 304.38-1935 shall meet ] 
(e) Performed by a facility that meets current criteria of the American College of Radiology 
Mammography Accreditation Program; and  CHAPTER 97 
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(f) Performed on dedicated equipment that meets the guidelines established by the American College of 
Radiology. 
(4) If the application of any requirement of subsection (2) of this section would be the sole cause of a health 
insurance policy's, plan's, certificate's, or contract's failure to qualify as a Health Savings Account-
qualified High Deductible Health Plan under 26 U.S.C. sec. 223, as amended, then the requirement shall 
not apply to that policy, plan, certificate, or contract until the minimum deductible under 26 U.S.C. sec. 223, 
as amended, is satisfied. 
Section 2.   KRS 304.17A-096 is amended to read as follows: 
(1) An insurer authorized to engage in the business of insurance in the Commonwealth of Kentucky may offer one 
(1) or more basic health benefit plans in the individual, small group, and employer-organized association 
markets. A basic health benefit plan shall cover physician, pharmacy, home health, preventive, emergency, and 
inpatient and outpatient hospital services in accordance with the requirements of this subtitle. If vision or eye 
services are offered, these services may be provided by an ophthalmologist or optometrist. 
(2) An insurer that offers a basic health benefit plan shall be required to offer health benefit plans as defined in 
KRS 304.17A-005[(22)]. 
(3) An insurer in the individual, small group, or employer-organized association markets that offers a basic health 
benefit plan may offer a basic health benefit plan that excludes from coverage any state-mandated health 
insurance benefit, except that the basic health benefit plan shall include coverage for diabetes as provided in 
KRS 304.17A-148, hospice as provided in KRS 304.17A-250(6), chiropractic benefits as provided in KRS 
304.17A-171, breast examinations[mammograms] as provided in KRS 304.17A-133, and those mandated 
benefits specified under federal law. 
(4) Notwithstanding any other provisions of this section, mandated benefits excluded from coverage shall not be 
deemed to include the payment, indemnity, or reimbursement of specified health care providers for specific 
health care services. 
Section 3.   KRS 304.17A-133 is amended to read as follows: 
[All insurers issuing ]Health benefit plans[ in this Commonwealth that provide coverage for surgical services for a 
mastectomy and that are delivered, issued for delivery, amended, or renewed on or after July 14, 2000,] shall comply 
with[also provide coverage for mammograms under KRS 304.17-316. The coverage shall meet the standards set forth 
in] KRS 304.17-316. 
Section 4.   KRS 304.18-098 is amended to read as follows: 
[All insurers issuing ]Group or blanket health insurance policies and certificates in this Commonwealth[ that provide 
coverage on an expense-incurred basis for surgical services for a mastectomy and that are delivered, issued for 
delivery, amended, or renewed on or after October 15, 1990,] shall comply with[also provide coverage for 
mammograms under KRS 304.17-316. The coverage shall meet the standards set forth in] KRS 304.17-316. 
Section 5.   KRS 304.32-1591 is amended to read as follows: 
[All ]Nonprofit hospital, medical-surgical, dental, and health service corporation[corporations issuing] contracts in 
this Commonwealth[ that provide hospital, medical, or surgical expense benefits for a mastectomy and that are 
delivered, issued for delivery, amended, or renewed on or after October 15, 1990,] shall comply with[also provide 
coverage for mammograms under KRS 304.17-316. The coverage shall meet the standards set forth in] KRS 304.17-
316. 
Section 6.   KRS 304.38-1935 is amended to read as follows: 
Health maintenance organization[organizations issuing] contracts in this Commonwealth[ that provide hospital, 
medical, or surgical expense benefits for surgical services for a mastectomy and that are delivered, issued for 
delivery, amended, or renewed on or after October 15, 1990,] shall comply with[also provide coverage for 
mammograms under KRS 304.17-316. The coverage shall meet the minimum standards set forth in] KRS 304.17-
316. 
Section 7.   KRS 18A.225 (Effective January 1, 2025) is amended to read as follows: 
(1) (a) The term "employee" for purposes of this section means:  ACTS OF THE GENERAL ASSEMBLY 4 
1. Any person, including an elected public official, who is regularly employed by any department, 
office, board, agency, or branch of state government; or by a public postsecondary educational 
institution; or by any city, urban-county, charter county, county, or consolidated local 
government, whose legislative body has opted to participate in the state-sponsored health 
insurance program pursuant to KRS 79.080; and who is either a contributing member to any one 
(1) of the retirement systems administered by the state, including but not limited to the Kentucky 
Retirement Systems, County Employees Retirement System, Kentucky Teachers' Retirement 
System, the Legislators' Retirement Plan, or the Judicial Retirement Plan; or is receiving a 
contractual contribution from the state toward a retirement plan; or, in the case of a public 
postsecondary education institution, is an individual participating in an optional retirement plan 
authorized by KRS 161.567; or is eligible to participate in a retirement plan established by an 
employer who ceases participating in the Kentucky Employees Retirement System pursuant to 
KRS 61.522 whose employees participated in the health insurance plans administered by the 
Personnel Cabinet prior to the employer's effective cessation date in the Kentucky Employees 
Retirement System; 
2. Any certified or classified employee of a local board of education or a public charter school as 
defined in KRS 160.1590; 
3. Any elected member of a local board of education; 
4. Any person who is a present or future recipient of a retirement allowance from the Kentucky 
Retirement Systems, County Employees Retirement System, Kentucky Teachers' Retirement 
System, the Legislators' Retirement Plan, the Judicial Retirement Plan, or the Kentucky 
Community and Technical College System's optional retirement plan authorized by KRS 
161.567, except that a person who is receiving a retirement allowance and who is age sixty-five 
(65) or older shall not be included, with the exception of persons covered under KRS 
61.702(2)(b)3. and 78.5536(2)(b)3., unless he or she is actively employed pursuant to 
subparagraph 1. of this paragraph; and 
5. Any eligible dependents and beneficiaries of participating employees and retirees who are 
entitled to participate in the state-sponsored health insurance program; 
(b) The term "health benefit plan" for the purposes of this section means a health benefit plan as defined in 
KRS 304.17A-005; 
(c) The term "insurer" for the purposes of this section means an insurer as defined in KRS 304.17A-005; 
and 
(d) The term "managed care plan" for the purposes of this section means a managed care plan as defined in 
KRS 304.17A-500. 
(2) (a) The secretary of the Finance and Administration Cabinet, upon the recommendation of the secretary of 
the Personnel Cabinet, shall procure, in compliance with the provisions of KRS 45A.080, 45A.085, and 
45A.090, from one (1) or more insurers authorized to do business in this state, a group health benefit 
plan that may include but not be limited to health maintenance organization (HMO), preferred provider 
organization (PPO), point of service (POS), and exclusive provider organization (EPO) benefit plans 
encompassing all or any class or classes of employees. With the exception of employers governed by 
the provisions of KRS Chapters 16, 18A, and 151B, all employers of any class of employees or former 
employees shall enter into a contract with the Personnel Cabinet prior to including that group in the 
state health insurance group. The contracts shall include but not be limited to designating the entity 
responsible for filing any federal forms, adoption of policies required for proper plan administration, 
acceptance of the contractual provisions with health insurance carriers or third-party administrators, and 
adoption of the payment and reimbursement methods necessary for efficient administration of the health 
insurance program. Health insurance coverage provided to state employees under this section shall, at a 
minimum, contain the same benefits as provided under Kentucky Kare Standard as of January 1, 1994, 
and shall include a mail-order drug option as provided in subsection (13) of this section. All employees 
and other persons for whom the health care coverage is provided or made available shall annually be 
given an option to elect health care coverage through a self-funded plan offered by the Commonwealth 
or, if a self-funded plan is not available, from a list of coverage options determined by the competitive 
bid process under the provisions of KRS 45A.080, 45A.085, and 45A.090 and made available during 
annual open enrollment.  CHAPTER 97 
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(b) The policy or policies shall be approved by the commissioner of insurance and may contain the 
provisions the commissioner of insurance approves, whether or not otherwise permitted by the 
insurance laws. 
(c) Any carrier bidding to offer health care coverage to employees shall agree to provide coverage to all 
members of the state group, including active employees and retirees and their eligible covered 
dependents and beneficiaries, within the county or counties specified in its bid. Except as provided in 
subsection (20) of this section, any carrier bidding to offer health care coverage to employees shall also 
agree to rate all employees as a single entity, except for those retirees whose former employers insure 
their active employees outside the state-sponsored health insurance program and as otherwise provided 
in KRS 61.702(2)(b)3.b. and 78.5536(2)(b)3.b. 
(d) Any carrier bidding to offer health care coverage to employees shall agree to provide enrollment, 
claims, and utilization data to the Commonwealth in a format specified by the Personnel Cabinet with 
the understanding that the data shall be owned by the Commonwealth; to provide data in an electronic 
form and within a time frame specified by the Personnel Cabinet; and to be subject to penalties for 
noncompliance with data reporting requirements as specified by the Personnel Cabinet. The Personnel 
Cabinet shall take strict precautions to protect the confidentiality of each individual employee; however, 
confidentiality assertions shall not relieve a carrier from the requirement of providing stipulated data to 
the Commonwealth. 
(e) The Personnel Cabinet shall develop the necessary techniques and capabilities for timely analysis of 
data received from carriers and, to the extent possible, provide in the request-for-proposal specifics 
relating to data requirements, electronic reporting, and penalties for noncompliance. The 
Commonwealth shall own the enrollment, claims, and utilization data provided by each carrier and shall 
develop methods to protect the confidentiality of the individual. The Personnel Cabinet shall include in 
the October annual report submitted pursuant to the provisions of KRS 18A.226 to the Governor, the 
General Assembly, and the Chief Justice of the Supreme Court, an analysis of the financial stability of 
the program, which shall include but not be limited to loss ratios, methods of risk adjustment, 
measurements of carrier quality of service, prescription coverage and cost management, and statutorily 
required mandates. If state self-insurance was available as a carrier option, the report also shall provide 
a detailed financial analysis of the self-insurance fund including but not limited to loss ratios, reserves, 
and reinsurance agreements. 
(f) If any agency participating in the state-sponsored employee health insurance program for its active 
employees terminates participation and there is a state appropriation for the employer's contribution for 
active employees' health insurance coverage, then neither the agency nor the employees shall receive 
the state-funded contribution after termination from the state-sponsored employee health insurance 
program. 
(g) Any funds in flexible spending accounts that remain after all reimbursements have been processed shall 
be transferred to the credit of the state-sponsored health insurance plan's appropriation account. 
(h) Each entity participating in the state-sponsored health insurance program shall provide an amount at 
least equal to the state contribution rate for the employer portion of the health insurance premium. For 
any participating entity that used the state payroll system, the employer contribution amount shall be 
equal to but not greater than the state contribution rate. 
(3) The premiums may be paid by the policyholder: 
(a) Wholly from funds contributed by the employee, by payroll deduction or otherwise; 
(b) Wholly from funds contributed by any department, board, agency, public postsecondary education 
institution, or branch of state, city, urban-county, charter county, county, or consolidated local 
government; or 
(c) Partly from each, except that any premium due for health care coverage or dental coverage, if any, in 
excess of the premium amount contributed by any department, board, agency, postsecondary education 
institution, or branch of state, city, urban-county, charter county, county, or consolidated local 
government for any other health care coverage shall be paid by the employee. 
(4) If an employee moves his or her place of residence or employment out of the service area of an insurer 
offering a managed health care plan, under which he or she has elected coverage, into either the service area of  ACTS OF THE GENERAL ASSEMBLY 6 
another managed health care plan or into an area of the Commonwealth not within a managed health care plan 
service area, the employee shall be given an option, at the time of the move or transfer, to change his or her 
coverage to another health benefit plan. 
(5) No payment of premium by any department, board, agency, public postsecondary educational institution, or 
branch of state, city, urban-county, charter county, county, or consolidated local government shall constitute 
compensation to an insured employee for the purposes of any statute fixing or limiting the compensation of 
such an employee. Any premium or other expense incurred by any department, board, agency, public 
postsecondary educational institution, or branch of state, city, urban-county, charter county, county, or 
consolidated local government shall be considered a proper cost of administration. 
(6) The policy or policies may contain the provisions with respect to the class or classes of employees covered, 
amounts of insurance or coverage for designated classes or groups of employees, policy options, terms of 
eligibility, and continuation of insurance or coverage after retirement. 
(7) Group rates under this section shall be made available to the disabled child of an employee regardless of the 
child's age if the entire premium for the disabled child's coverage is paid by the state employee. A child shall 
be considered disabled if he or she has been determined to be eligible for federal Social Security disability 
benefits. 
(8) The health care contract or contracts for employees shall be entered into for a period of not less than one (1) 
year. 
(9) The secretary shall appoint thirty-two (32) persons to an Advisory Committee of State Health Insurance 
Subscribers to advise the secretary or the secretary's designee regarding the state-sponsored health insurance 
program for employees. The secretary shall appoint, from a list of names submitted by appointing authorities, 
members representing school districts from each of the seven (7) Supreme Court districts, members 
representing state government from each of the seven (7) Supreme Court districts, two (2) members 
representing retirees under age sixty-five (65), one (1) member representing local health departments, two (2) 
members representing the Kentucky Teachers' Retirement System, and three (3) members at large. The 
secretary shall also appoint two (2) members from a list of five (5) names submitted by the Kentucky 
Education Association, two (2) members from a list of five (5) names submitted by the largest state employee 
organization of nonschool state employees, two (2) members from a list of five (5) names submitted by the 
Kentucky Association of Counties, two (2) members from a list of five (5) names submitted by the Kentucky 
League of Cities, and two (2) members from a list of names consisting of five (5) names submitted by each 
state employee organization that has two thousand (2,000) or more members on state payroll deduction. The 
advisory committee shall be appointed in January of each year and shall meet quarterly. 
(10) Notwithstanding any other provision of law to the contrary, the policy or policies provided to employees 
pursuant to this section shall not provide coverage for obtaining or performing an abortion, nor shall any state 
funds be used for the purpose of obtaining or performing an abortion on behalf of employees or their 
dependents. 
(11) Interruption of an established treatment regime with maintenance drugs shall be grounds for an insured to 
appeal a formulary change through the established appeal procedures approved by the Department of 
Insurance, if the physician supervising the treatment certifies that the change is not in the best interests of the 
patient. 
(12) Any employee who is eligible for and elects to participate in the state health insurance program as a retiree, or 
the spouse or beneficiary of a retiree, under any one (1) of the state-sponsored retirement systems shall not be 
eligible to receive the state health insurance contribution toward health care coverage as a result of any other 
employment for which there is a public employer contribution. This does not preclude a retiree and an active 
employee spouse from using both contributions to the extent needed for purchase of one (1) state sponsored 
health insurance policy for that plan year. 
(13) (a) The policies of health insurance coverage procured under subsection (2) of this section shall include a 
mail-order drug option for maintenance drugs for state employees. Maintenance drugs may be 
dispensed by mail order in accordance with Kentucky law. 
(b) A health insurer shall not discriminate against any retail pharmacy located within the geographic 
coverage area of the health benefit plan and that meets the terms and conditions for participation 
established by the insurer, including price, dispensing fee, and copay requirements of a mail-order 
option. The retail pharmacy shall not be required to dispense by mail.  CHAPTER 97 
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(c) The mail-order option shall not permit the dispensing of a controlled substance classified in Schedule II. 
(14) The policy or policies provided to state employees or their dependents pursuant to this section shall provide 
coverage for obtaining a hearing aid and acquiring hearing aid-related services for insured individuals under 
eighteen (18) years of age, subject to a cap of one thousand four hundred dollars ($1,400) every thirty-six (36) 
months pursuant to KRS 304.17A-132. 
(15) Any policy provided to state employees or their dependents pursuant to this section shall provide coverage for 
the diagnosis and treatment of autism spectrum disorders consistent with KRS 304.17A-142. 
(16) Any policy provided to state employees or their dependents pursuant to this section shall provide coverage for 
obtaining amino acid-based elemental formula pursuant to KRS 304.17A-258. 
(17) If a state employee's residence and place of employment are in the same county, and if the hospital located 
within that county does not offer surgical services, intensive care services, obstetrical services, level II 
neonatal services, diagnostic cardiac catheterization services, and magnetic resonance imaging services, the 
employee may select a plan available in a contiguous county that does provide those services, and the state 
contribution for the plan shall be the amount available in the county where the plan selected is located. 
(18) If a state employee's residence and place of employment are each located in counties in which the hospitals do 
not offer surgical services, intensive care services, obstetrical services, level II neonatal services, diagnostic 
cardiac catheterization services, and magnetic resonance imaging services, the employee may select a plan 
available in a county contiguous to the county of residence that does provide those services, and the state 
contribution for the plan shall be the amount available in the county where the plan selected is located. 
(19) The Personnel Cabinet is encouraged to study whether it is fair and reasonable and in the best interests of the 
state group to allow any carrier bidding to offer health care coverage under this section to submit bids that may 
vary county by county or by larger geographic areas. 
(20) Notwithstanding any other provision of this section, the bid for proposals for health insurance coverage for 
calendar year 2004 shall include a bid scenario that reflects the statewide rating structure provided in calendar 
year 2003 and a bid scenario that allows for a regional rating structure that allows carriers to submit bids that 
may vary by region for a given product offering as described in this subsection: 
(a) The regional rating bid scenario shall not include a request for bid on a statewide option; 
(b) The Personnel Cabinet shall divide the state into geographical regions which shall be the same as the 
partnership regions designated by the Department for Medicaid Services for purposes of the Kentucky 
Health Care Partnership Program established pursuant to 907 KAR 1:705; 
(c) The request for proposal shall require a carrier's bid to include every county within the region or regions 
for which the bid is submitted and include but not be restricted to a preferred provider organization 
(PPO) option; 
(d) If the Personnel Cabinet accepts a carrier's bid, the cabinet shall award the carrier all of the counties 
included in its bid within the region. If the Personnel Cabinet deems the bids submitted in accordance 
with this subsection to be in the best interests of state employees in a region, the cabinet may award the 
contract for that region to no more than two (2) carriers; and 
(e) Nothing in this subsection shall prohibit the Personnel Cabinet from including other requirements or 
criteria in the request for proposal. 
(21) Any fully insured health benefit plan or self-insured plan issued or renewed on or after July 12, 2006, to public 
employees pursuant to this section which provides coverage for services rendered by a physician or osteopath 
duly licensed under KRS Chapter 311 that are within the scope of practice of an optometrist duly licensed 
under the provisions of KRS Chapter 320 shall provide the same payment of coverage to optometrists as 
allowed for those services rendered by physicians or osteopaths. 
(22) Any fully insured health benefit plan or self-insured plan issued or renewed to public employees pursuant to 
this section shall comply with: 
(a) KRS 304.12-237; 
(b) KRS 304.17A-270 and 304.17A-525; 
(c) KRS 304.17A-600 to 304.17A-633;  ACTS OF THE GENERAL ASSEMBLY 8 
(d) KRS 205.593; 
(e) KRS 304.17A-700 to 304.17A-730; 
(f) KRS 304.14-135; 
(g) KRS 304.17A-580 and 304.17A-641; 
(h) KRS 304.99-123; 
(i) KRS 304.17A-138; 
(j) KRS 304.17A-148; 
(k) KRS 304.17A-163 and 304.17A-1631; 
(l) KRS 304.17A-265; 
(m) KRS 304.17A-261; 
(n) KRS 304.17A-262;[ and] 
(o) Section 3 of this Act; and 
(p) Administrative regulations promulgated pursuant to statutes listed in this subsection. 
Section 8.   KRS 164.2871 (Effective January 1, 2025) is amended to read as follows: 
(1) The governing board of each state postsecondary educational institution is authorized to purchase liability 
insurance for the protection of the individual members of the governing board, faculty, and staff of such 
institutions from liability for acts and omissions committed in the course and scope of the individual's 
employment or service. Each institution may purchase the type and amount of liability coverage deemed to 
best serve the interest of such institution. 
(2) All retirement annuity allowances accrued or accruing to any employee of a state postsecondary educational 
institution through a retirement program sponsored by the state postsecondary educational institution are 
hereby exempt from any state, county, or municipal tax, and shall not be subject to execution, attachment, 
garnishment, or any other process whatsoever, nor shall any assignment thereof be enforceable in any court. 
Except retirement benefits accrued or accruing to any employee of a state postsecondary educational 
institution through a retirement program sponsored by the state postsecondary educational institution on or 
after January 1, 1998, shall be subject to the tax imposed by KRS 141.020, to the extent provided in KRS 
141.010 and 141.0215. 
(3) Except as provided in KRS Chapter 44, the purchase of liability insurance for members of governing boards, 
faculty and staff of institutions of higher education in this state shall not be construed to be a waiver of 
sovereign immunity or any other immunity or privilege. 
(4) The governing board of each state postsecondary education institution is authorized to provide a self-insured 
employer group health plan to its employees, which plan shall: 
(a) Conform to the requirements of Subtitle 32 of KRS Chapter 304; and 
(b) Except as provided in subsection (5) of this section, be exempt from conformity with Subtitle 17A of 
KRS Chapter 304. 
(5) A self-insured employer group health plan provided by the governing board of a state postsecondary education 
institution to its employees shall comply with: 
(a) KRS 304.17A-163 and 304.17A-1631; 
(b) KRS 304.17A-265; 
(c) KRS 304.17A-261;[ and] 
(d) KRS 304.17A-262; and 
(e) Section 3 of this Act. 
Section 9. This Act applies to policies, plans, certificates, and contracts issued or renewed on or after 
January 1, 2025. 
Section 10.   This Act takes effect January 1, 2025.  CHAPTER 97 
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Signed by Governor April 5, 2024.