UNOFFICIAL COPY 24 RS BR 898 Page 1 of 17 XXXX 12/20/2023 8:29 AM Jacketed AN ACT relating to pharmacy benefits. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 Section 1. KRS 304.17A-164 is amended to read as follows: 3 (1) As used in this section: 4 (a) "Cost sharing" 5 1. Means the cost to an insured under a health plan according to any 6 coverage limit, copayment, coinsurance, deductible, or other out-of-7 pocket expense requirements imposed by the plan[, which may be 8 subject to annual limitations on cost sharing, including those imposed 9 under 42 U.S.C. secs. 18022(c) and 300gg-6(b),] in order for the insured 10 to receive a specific benefit[health care service] covered by the plan; 11 and 12 2. May be subject to annual limitations, including those imposed under 13 42 U.S.C. secs. 18022(c) and 300gg-6(b); 14 (b) "Generic alternative" means a drug that is designated to be therapeutically 15 equivalent by the United States Food and Drug Administration's Approved 16 Drug Products with Therapeutic Equivalence Evaluations, except that a drug 17 shall not be considered a generic alternative until the drug is nationally 18 available; 19 (c) "Health plan": 20 1. Means any[a] policy, contract, certificate, or plan that offers or 21 provides pharmacy benefits in this state, whether the coverage is by 22 direct payment, reimbursement, or otherwise[agreement offered or 23 issued by an insurer to provide, deliver, arrange for, pay for, or 24 reimburse any of the cost of health care services];[ and] 25 2. Includes a health benefit plan; and 26 3. Does not include a policy, contract, certificate, or plan that offers or 27 UNOFFICIAL COPY 24 RS BR 898 Page 2 of 17 XXXX 12/20/2023 8:29 AM Jacketed provides benefits under KRS Chapter 205; 1 (d) "Insured" means any individual who is enrolled in a health plan and on whose 2 behalf the insurer is obligated to pay for or provide pharmacy benefits[health 3 care services]; 4 (e) "Insurer": 5 1. Means any of the following persons that offer or issue a health plan: 6 a. An insurance company; 7 b. A health maintenance organization; 8 c. A limited health service organization; 9 d. A self-insurer, including a governmental plan, church plan, or 10 multiple employer welfare arrangement; 11 e. A provider-sponsored integrated health delivery network; 12 f. A self-insured employer-organized association; 13 g. A nonprofit hospital, medical-surgical, dental, and health service 14 corporation; or 15 h. Any other third-party payor that is: 16 i. Authorized to transact health insurance business in this 17 state; or 18 ii. Not exempt by federal law from regulation under the 19 insurance laws of this state; and 20 2. Includes any person that has contracted with a state or federal agency 21 to provide coverage in this state for pharmacy benefits, except persons 22 or entities that have contracted to provide benefits under KRS Chapter 23 205[includes: 24 1. An insurer offering a health plan providing coverage for pharmacy 25 benefits; or 26 2. Any other administrator of pharmacy benefits under a health plan]; 27 UNOFFICIAL COPY 24 RS BR 898 Page 3 of 17 XXXX 12/20/2023 8:29 AM Jacketed (f) "Person" includes[means] a natural person, corporation, mutual company, 1 unincorporated association, partnership, joint venture, limited liability 2 company, trust, estate, foundation, nonprofit corporation, unincorporated 3 organization, government, or governmental subdivision or agency; 4 (g) "Pharmacy" includes: 5 1. A pharmacy, as defined in KRS Chapter 315; 6 2. A pharmacist, as defined in KRS Chapter 315; and 7 3. Any employee of a pharmacy or pharmacist; and 8 (h) "Pharmacy benefit manager" has the same meaning as in KRS 304.9-9 020[304.17A-161]. 10 (2) To the extent permitted under federal law and except as provided in subsection (4) 11 of this section, an insurer,[ issuing or renewing a health plan on or after January 1, 12 2022, or] a pharmacy benefit manager, or any other administrator of pharmacy 13 benefits shall not: 14 (a) Require an insured purchasing a prescription drug to pay a cost-sharing 15 amount greater than the amount the insured would pay for the drug if he or 16 she purchased[were to purchase] the drug without coverage under the health 17 plan; 18 (b) 1. Require or incentivize an insured to use a mail-order pharmaceutical 19 distributor, including a mail-order pharmacy. 20 2. Conduct prohibited under this paragraph includes but is not limited to 21 imposing any cost-sharing requirement, fee, or other condition 22 relating to the use of a retail pharmacy that is greater, or more 23 restrictive, than what would otherwise be imposed if the insured used a 24 mail-order pharmaceutical distributer, including a mail-order 25 pharmacy; 26 (c) 1. Except as provided in subparagraph 2. of this paragraph, exclude any 27 UNOFFICIAL COPY 24 RS BR 898 Page 4 of 17 XXXX 12/20/2023 8:29 AM Jacketed cost-sharing amounts paid by an insured, or on behalf of an insured by 1 another person, for a prescription drug, including any amount paid under 2 paragraph (a) of this subsection, when calculating an insured's 3 contribution to any applicable cost-sharing requirement. 4 2. The requirements of this paragraph shall not apply: 5 a.[1.] In the case of a prescription drug for which there is a generic 6 alternative, unless the insured has obtained access to the brand 7 prescription drug through prior authorization, a step therapy 8 protocol, or the insurer's exceptions and appeals process; or 9 b.[2.] To any fully insured health benefit plan or self-insured plan 10 provided to any employee under KRS 18A.225; 11 (d)[(c)] Prohibit a pharmacy from discussing any information authorized under 12 subsection (3) of this section; or 13 (e)[(d)] Impose a penalty on a pharmacy for complying with this section. 14 (3) A pharmacist shall have the right to provide an insured information regarding the 15 applicable limitations on his or her cost sharing pursuant to this section for a 16 prescription drug. 17 (4) If the application of any requirement of subsection (2)(c)[(b)] of this section would 18 be the sole cause of a health plan's failure to qualify as a Health Savings Account-19 qualified High Deductible Health Plan under 26 U.S.C. sec. 223, as amended, then 20 the requirement shall not apply to that health plan until the minimum deductible 21 under 26 U.S.C. sec. 223, as amended, is satisfied. 22 Section 2. KRS 304.17C-125 (Effective January 1, 2025) is amended to read as 23 follows: 24 The following[KRS 304.17A-262] shall apply to limited health service benefit plans, 25 including any limited health service contract, as defined in KRS 304.38A-010: 26 (1) KRS 304.17A-262; and 27 UNOFFICIAL COPY 24 RS BR 898 Page 5 of 17 XXXX 12/20/2023 8:29 AM Jacketed (2) Section 1 of this Act. 1 Section 3. KRS 304.38A-115 (Effective January 1, 2025) is amended to read as 2 follows: 3 Limited health service organizations shall comply with: 4 (1) KRS 304.17A-262; 5 (2) KRS 304.17A-265; and 6 (3) Section 1 of this Act. 7 Section 4. KRS 18A.225 (Effective January 1, 2025) is amended to read as 8 follows: 9 (1) (a) The term "employee" for purposes of this section means: 10 1. Any person, including an elected public official, who is regularly 11 employed by any department, office, board, agency, or branch of state 12 government; or by a public postsecondary educational institution; or by 13 any city, urban-county, charter county, county, or consolidated local 14 government, whose legislative body has opted to participate in the state-15 sponsored health insurance program pursuant to KRS 79.080; and who 16 is either a contributing member to any one (1) of the retirement systems 17 administered by the state, including but not limited to the Kentucky 18 Retirement Systems, County Employees Retirement System, Kentucky 19 Teachers' Retirement System, the Legislators' Retirement Plan, or the 20 Judicial Retirement Plan; or is receiving a contractual contribution from 21 the state toward a retirement plan; or, in the case of a public 22 postsecondary education institution, is an individual participating in an 23 optional retirement plan authorized by KRS 161.567; or is eligible to 24 participate in a retirement plan established by an employer who ceases 25 participating in the Kentucky Employees Retirement System pursuant to 26 KRS 61.522 whose employees participated in the health insurance plans 27 UNOFFICIAL COPY 24 RS BR 898 Page 6 of 17 XXXX 12/20/2023 8:29 AM Jacketed administered by the Personnel Cabinet prior to the employer's effective 1 cessation date in the Kentucky Employees Retirement System; 2 2. Any certified or classified employee of a local board of education or a 3 public charter school as defined in KRS 160.1590; 4 3. Any elected member of a local board of education; 5 4. Any person who is a present or future recipient of a retirement 6 allowance from the Kentucky Retirement Systems, County Employees 7 Retirement System, Kentucky Teachers' Retirement System, the 8 Legislators' Retirement Plan, the Judicial Retirement Plan, or the 9 Kentucky Community and Technical College System's optional 10 retirement plan authorized by KRS 161.567, except that a person who is 11 receiving a retirement allowance and who is age sixty-five (65) or older 12 shall not be included, with the exception of persons covered under KRS 13 61.702(2)(b)3. and 78.5536(2)(b)3., unless he or she is actively 14 employed pursuant to subparagraph 1. of this paragraph; and 15 5. Any eligible dependents and beneficiaries of participating employees 16 and retirees who are entitled to participate in the state-sponsored health 17 insurance program; 18 (b) The term "health benefit plan" for the purposes of this section means a health 19 benefit plan as defined in KRS 304.17A-005; 20 (c) The term "insurer" for the purposes of this section means an insurer as defined 21 in KRS 304.17A-005; and 22 (d) The term "managed care plan" for the purposes of this section means a 23 managed care plan as defined in KRS 304.17A-500. 24 (2) (a) The secretary of the Finance and Administration Cabinet, upon the 25 recommendation of the secretary of the Personnel Cabinet, shall procure, in 26 compliance with the provisions of KRS 45A.080, 45A.085, and 45A.090, 27 UNOFFICIAL COPY 24 RS BR 898 Page 7 of 17 XXXX 12/20/2023 8:29 AM Jacketed from one (1) or more insurers authorized to do business in this state, a group 1 health benefit plan that may include but not be limited to health maintenance 2 organization (HMO), preferred provider organization (PPO), point of service 3 (POS), and exclusive provider organization (EPO) benefit plans 4 encompassing all or any class or classes of employees. With the exception of 5 employers governed by the provisions of KRS Chapters 16, 18A, and 151B, 6 all employers of any class of employees or former employees shall enter into 7 a contract with the Personnel Cabinet prior to including that group in the state 8 health insurance group. The contracts shall include but not be limited to 9 designating the entity responsible for filing any federal forms, adoption of 10 policies required for proper plan administration, acceptance of the contractual 11 provisions with health insurance carriers or third-party administrators, and 12 adoption of the payment and reimbursement methods necessary for efficient 13 administration of the health insurance program. Health insurance coverage 14 provided to state employees under this section shall, at a minimum, contain 15 the same benefits as provided under Kentucky Kare Standard as of January 1, 16 1994, and shall include a mail-order drug option as provided in subsection 17 (13) of this section. All employees and other persons for whom the health care 18 coverage is provided or made available shall annually be given an option to 19 elect health care coverage through a self-funded plan offered by the 20 Commonwealth or, if a self-funded plan is not available, from a list of 21 coverage options determined by the competitive bid process under the 22 provisions of KRS 45A.080, 45A.085, and 45A.090 and made available 23 during annual open enrollment. 24 (b) The policy or policies shall be approved by the commissioner of insurance 25 and may contain the provisions the commissioner of insurance approves, 26 whether or not otherwise permitted by the insurance laws. 27 UNOFFICIAL COPY 24 RS BR 898 Page 8 of 17 XXXX 12/20/2023 8:29 AM Jacketed (c) Any carrier bidding to offer health care coverage to employees shall agree to 1 provide coverage to all members of the state group, including active 2 employees and retirees and their eligible covered dependents and 3 beneficiaries, within the county or counties specified in its bid. Except as 4 provided in subsection (20) of this section, any carrier bidding to offer health 5 care coverage to employees shall also agree to rate all employees as a single 6 entity, except for those retirees whose former employers insure their active 7 employees outside the state-sponsored health insurance program and as 8 otherwise provided in KRS 61.702(2)(b)3.b. and 78.5536(2)(b)3.b. 9 (d) Any carrier bidding to offer health care coverage to employees shall agree to 10 provide enrollment, claims, and utilization data to the Commonwealth in a 11 format specified by the Personnel Cabinet with the understanding that the data 12 shall be owned by the Commonwealth; to provide data in an electronic form 13 and within a time frame specified by the Personnel Cabinet; and to be subject 14 to penalties for noncompliance with data reporting requirements as specified 15 by the Personnel Cabinet. The Personnel Cabinet shall take strict precautions 16 to protect the confidentiality of each individual employee; however, 17 confidentiality assertions shall not relieve a carrier from the requirement of 18 providing stipulated data to the Commonwealth. 19 (e) The Personnel Cabinet shall develop the necessary techniques and capabilities 20 for timely analysis of data received from carriers and, to the extent possible, 21 provide in the request-for-proposal specifics relating to data requirements, 22 electronic reporting, and penalties for noncompliance. The Commonwealth 23 shall own the enrollment, claims, and utilization data provided by each carrier 24 and shall develop methods to protect the confidentiality of the individual. The 25 Personnel Cabinet shall include in the October annual report submitted 26 pursuant to the provisions of KRS 18A.226 to the Governor, the General 27 UNOFFICIAL COPY 24 RS BR 898 Page 9 of 17 XXXX 12/20/2023 8:29 AM Jacketed Assembly, and the Chief Justice of the Supreme Court, an analysis of the 1 financial stability of the program, which shall include but not be limited to 2 loss ratios, methods of risk adjustment, measurements of carrier quality of 3 service, prescription coverage and cost management, and statutorily required 4 mandates. If state self-insurance was available as a carrier option, the report 5 also shall provide a detailed financial analysis of the self-insurance fund 6 including but not limited to loss ratios, reserves, and reinsurance agreements. 7 (f) If any agency participating in the state-sponsored employee health insurance 8 program for its active employees terminates participation and there is a state 9 appropriation for the employer's contribution for active employees' health 10 insurance coverage, then neither the agency nor the employees shall receive 11 the state-funded contribution after termination from the state-sponsored 12 employee health insurance program. 13 (g) Any funds in flexible spending accounts that remain after all reimbursements 14 have been processed shall be transferred to the credit of the state-sponsored 15 health insurance plan's appropriation account. 16 (h) Each entity participating in the state-sponsored health insurance program shall 17 provide an amount at least equal to the state contribution rate for the employer 18 portion of the health insurance premium. For any participating entity that used 19 the state payroll system, the employer contribution amount shall be equal to 20 but not greater than the state contribution rate. 21 (3) The premiums may be paid by the policyholder: 22 (a) Wholly from funds contributed by the employee, by payroll deduction or 23 otherwise; 24 (b) Wholly from funds contributed by any department, board, agency, public 25 postsecondary education institution, or branch of state, city, urban-county, 26 charter county, county, or consolidated local government; or 27 UNOFFICIAL COPY 24 RS BR 898 Page 10 of 17 XXXX 12/20/2023 8:29 AM Jacketed (c) Partly from each, except that any premium due for health care coverage or 1 dental coverage, if any, in excess of the premium amount contributed by any 2 department, board, agency, postsecondary education institution, or branch of 3 state, city, urban-county, charter county, county, or consolidated local 4 government for any other health care coverage shall be paid by the employee. 5 (4) If an employee moves his or her place of residence or employment out of the 6 service area of an insurer offering a managed health care plan, under which he or 7 she has elected coverage, into either the service area of another managed health care 8 plan or into an area of the Commonwealth not within a managed health care plan 9 service area, the employee shall be given an option, at the time of the move or 10 transfer, to change his or her coverage to another health benefit plan. 11 (5) No payment of premium by any department, board, agency, public postsecondary 12 educational institution, or branch of state, city, urban-county, charter county, 13 county, or consolidated local government shall constitute compensation to an 14 insured employee for the purposes of any statute fixing or limiting the 15 compensation of such an employee. Any premium or other expense incurred by any 16 department, board, agency, public postsecondary educational institution, or branch 17 of state, city, urban-county, charter county, county, or consolidated local 18 government shall be considered a proper cost of administration. 19 (6) The policy or policies may contain the provisions with respect to the class or classes 20 of employees covered, amounts of insurance or coverage for designated classes or 21 groups of employees, policy options, terms of eligibility, and continuation of 22 insurance or coverage after retirement. 23 (7) Group rates under this section shall be made available to the disabled child of an 24 employee regardless of the child's age if the entire premium for the disabled child's 25 coverage is paid by the state employee. A child shall be considered disabled if he or 26 she has been determined to be eligible for federal Social Security disability benefits. 27 UNOFFICIAL COPY 24 RS BR 898 Page 11 of 17 XXXX 12/20/2023 8:29 AM Jacketed (8) The health care contract or contracts for employees shall be entered into for a 1 period of not less than one (1) year. 2 (9) The secretary shall appoint thirty-two (32) persons to an Advisory Committee of 3 State Health Insurance Subscribers to advise the secretary or the secretary's 4 designee regarding the state-sponsored health insurance program for employees. 5 The secretary shall appoint, from a list of names submitted by appointing 6 authorities, members representing school districts from each of the seven (7) 7 Supreme Court districts, members representing state government from each of the 8 seven (7) Supreme Court districts, two (2) members representing retirees under age 9 sixty-five (65), one (1) member representing local health departments, two (2) 10 members representing the Kentucky Teachers' Retirement System, and three (3) 11 members at large. The secretary shall also appoint two (2) members from a list of 12 five (5) names submitted by the Kentucky Education Association, two (2) members 13 from a list of five (5) names submitted by the largest state employee organization of 14 nonschool state employees, two (2) members from a list of five (5) names submitted 15 by the Kentucky Association of Counties, two (2) members from a list of five (5) 16 names submitted by the Kentucky League of Cities, and two (2) members from a 17 list of names consisting of five (5) names submitted by each state employee 18 organization that has two thousand (2,000) or more members on state payroll 19 deduction. The advisory committee shall be appointed in January of each year and 20 shall meet quarterly. 21 (10) Notwithstanding any other provision of law to the contrary, the policy or policies 22 provided to employees pursuant to this section shall not provide coverage for 23 obtaining or performing an abortion, nor shall any state funds be used for the 24 purpose of obtaining or performing an abortion on behalf of employees or their 25 dependents. 26 (11) Interruption of an established treatment regime with maintenance drugs shall be 27 UNOFFICIAL COPY 24 RS BR 898 Page 12 of 17 XXXX 12/20/2023 8:29 AM Jacketed grounds for an insured to appeal a formulary change through the established appeal 1 procedures approved by the Department of Insurance, if the physician supervising 2 the treatment certifies that the change is not in the best interests of the patient. 3 (12) Any employee who is eligible for and elects to participate in the state health 4 insurance program as a retiree, or the spouse or beneficiary of a retiree, under any 5 one (1) of the state-sponsored retirement systems shall not be eligible to receive the 6 state health insurance contribution toward health care coverage as a result of any 7 other employment for which there is a public employer contribution. This does not 8 preclude a retiree and an active employee spouse from using both contributions to 9 the extent needed for purchase of one (1) state sponsored health insurance policy 10 for that plan year. 11 (13) (a) The policies of health insurance coverage procured under subsection (2) of 12 this section shall include a mail-order drug option for maintenance drugs for 13 state employees. Maintenance drugs may be dispensed by mail order in 14 accordance with Kentucky law. 15 (b) A health insurer shall not discriminate against any retail pharmacy located 16 within the geographic coverage area of the health benefit plan and that meets 17 the terms and conditions for participation established by the insurer, including 18 price, dispensing fee, and copay requirements of a mail-order option. The 19 retail pharmacy shall not be required to dispense by mail. 20 (c) The mail-order option shall not permit the dispensing of a controlled 21 substance classified in Schedule II. 22 (14) The policy or policies provided to state employees or their dependents pursuant to 23 this section shall provide coverage for obtaining a hearing aid and acquiring hearing 24 aid-related services for insured individuals under eighteen (18) years of age, subject 25 to a cap of one thousand four hundred dollars ($1,400) every thirty-six (36) months 26 pursuant to KRS 304.17A-132. 27 UNOFFICIAL COPY 24 RS BR 898 Page 13 of 17 XXXX 12/20/2023 8:29 AM Jacketed (15) Any policy provided to state employees or their dependents pursuant to this section 1 shall provide coverage for the diagnosis and treatment of autism spectrum disorders 2 consistent with KRS 304.17A-142. 3 (16) Any policy provided to state employees or their dependents pursuant to this section 4 shall provide coverage for obtaining amino acid-based elemental formula pursuant 5 to KRS 304.17A-258. 6 (17) If a state employee's residence and place of employment are in the same county, 7 and if the hospital located within that county does not offer surgical services, 8 intensive care services, obstetrical services, level II neonatal services, diagnostic 9 cardiac catheterization services, and magnetic resonance imaging services, the 10 employee may select a plan available in a contiguous county that does provide 11 those services, and the state contribution for the plan shall be the amount available 12 in the county where the plan selected is located. 13 (18) If a state employee's residence and place of employment are each located in 14 counties in which the hospitals do not offer surgical services, intensive care 15 services, obstetrical services, level II neonatal services, diagnostic cardiac 16 catheterization services, and magnetic resonance imaging services, the employee 17 may select a plan available in a county contiguous to the county of residence that 18 does provide those services, and the state contribution for the plan shall be the 19 amount available in the county where the plan selected is located. 20 (19) The Personnel Cabinet is encouraged to study whether it is fair and reasonable and 21 in the best interests of the state group to allow any carrier bidding to offer health 22 care coverage under this section to submit bids that may vary county by county or 23 by larger geographic areas. 24 (20) Notwithstanding any other provision of this section, the bid for proposals for health 25 insurance coverage for calendar year 2004 shall include a bid scenario that reflects 26 the statewide rating structure provided in calendar year 2003 and a bid scenario that 27 UNOFFICIAL COPY 24 RS BR 898 Page 14 of 17 XXXX 12/20/2023 8:29 AM Jacketed allows for a regional rating structure that allows carriers to submit bids that may 1 vary by region for a given product offering as described in this subsection: 2 (a) The regional rating bid scenario shall not include a request for bid on a 3 statewide option; 4 (b) The Personnel Cabinet shall divide the state into geographical regions which 5 shall be the same as the partnership regions designated by the Department for 6 Medicaid Services for purposes of the Kentucky Health Care Partnership 7 Program established pursuant to 907 KAR 1:705; 8 (c) The request for proposal shall require a carrier's bid to include every county 9 within the region or regions for which the bid is submitted and include but not 10 be restricted to a preferred provider organization (PPO) option; 11 (d) If the Personnel Cabinet accepts a carrier's bid, the cabinet shall award the 12 carrier all of the counties included in its bid within the region. If the Personnel 13 Cabinet deems the bids submitted in accordance with this subsection to be in 14 the best interests of state employees in a region, the cabinet may award the 15 contract for that region to no more than two (2) carriers; and 16 (e) Nothing in this subsection shall prohibit the Personnel Cabinet from including 17 other requirements or criteria in the request for proposal. 18 (21) Any fully insured health benefit plan or self-insured plan issued or renewed on or 19 after July 12, 2006, to public employees pursuant to this section which provides 20 coverage for services rendered by a physician or osteopath duly licensed under KRS 21 Chapter 311 that are within the scope of practice of an optometrist duly licensed 22 under the provisions of KRS Chapter 320 shall provide the same payment of 23 coverage to optometrists as allowed for those services rendered by physicians or 24 osteopaths. 25 (22) Any fully insured health benefit plan or self-insured plan issued or renewed to 26 public employees pursuant to this section shall comply with: 27 UNOFFICIAL COPY 24 RS BR 898 Page 15 of 17 XXXX 12/20/2023 8:29 AM Jacketed (a) KRS 304.12-237; 1 (b) KRS 304.17A-270 and 304.17A-525; 2 (c) KRS 304.17A-600 to 304.17A-633; 3 (d) KRS 205.593; 4 (e) KRS 304.17A-700 to 304.17A-730; 5 (f) KRS 304.14-135; 6 (g) KRS 304.17A-580 and 304.17A-641; 7 (h) KRS 304.99-123; 8 (i) KRS 304.17A-138; 9 (j) KRS 304.17A-148; 10 (k) KRS 304.17A-163 and 304.17A-1631; 11 (l) KRS 304.17A-265; 12 (m) KRS 304.17A-261; 13 (n) KRS 304.17A-262;[ and] 14 (o) Section 1 of this Act, to the extent applicable; and 15 (p) Administrative regulations promulgated pursuant to statutes listed in this 16 subsection. 17 Section 5. KRS 164.2871 (Effective January 1, 2025) is amended to read as 18 follows: 19 (1) The governing board of each state postsecondary educational institution is 20 authorized to purchase liability insurance for the protection of the individual 21 members of the governing board, faculty, and staff of such institutions from liability 22 for acts and omissions committed in the course and scope of the individual's 23 employment or service. Each institution may purchase the type and amount of 24 liability coverage deemed to best serve the interest of such institution. 25 (2) All retirement annuity allowances accrued or accruing to any employee of a state 26 postsecondary educational institution through a retirement program sponsored by 27 UNOFFICIAL COPY 24 RS BR 898 Page 16 of 17 XXXX 12/20/2023 8:29 AM Jacketed the state postsecondary educational institution are hereby exempt from any state, 1 county, or municipal tax, and shall not be subject to execution, attachment, 2 garnishment, or any other process whatsoever, nor shall any assignment thereof be 3 enforceable in any court. Except retirement benefits accrued or accruing to any 4 employee of a state postsecondary educational institution through a retirement 5 program sponsored by the state postsecondary educational institution on or after 6 January 1, 1998, shall be subject to the tax imposed by KRS 141.020, to the extent 7 provided in KRS 141.010 and 141.0215. 8 (3) Except as provided in KRS Chapter 44, the purchase of liability insurance for 9 members of governing boards, faculty and staff of institutions of higher education 10 in this state shall not be construed to be a waiver of sovereign immunity or any 11 other immunity or privilege. 12 (4) The governing board of each state postsecondary education institution is authorized 13 to provide a self-insured employer group health plan to its employees, which plan 14 shall: 15 (a) Conform to the requirements of Subtitle 32 of KRS Chapter 304; and 16 (b) Except as provided in subsection (5) of this section, be exempt from 17 conformity with Subtitle 17A of KRS Chapter 304. 18 (5) A self-insured employer group health plan provided by the governing board of a 19 state postsecondary education institution to its employees shall comply with: 20 (a) KRS 304.17A-163 and 304.17A-1631; 21 (b) KRS 304.17A-265; 22 (c) KRS 304.17A-261;[ and] 23 (d) KRS 304.17A-262; and 24 (e) Subsection (2)(b) of Section 1 of this Act. 25 Section 6. The following KRS section is repealed: 26 304.38A-120 Compliance with KRS 304.17A-265. 27 UNOFFICIAL COPY 24 RS BR 898 Page 17 of 17 XXXX 12/20/2023 8:29 AM Jacketed Section 7. Sections 1, 2, 4, and 5 of this Act apply to health plans issued or 1 renewed on or after January 1, 2025. 2 Section 8. This Act takes effect on January 1, 2025. 3