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AN ACT relating to electronic delivery of health plan communications. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF SUBTITLE 18 OF KRS CHAPTER 304 3
IS CREATED TO READ AS FOLLOWS: 4
(1) As used in this section: 5
(a) "Communications" includes health insurance identification cards and 6
other documents; 7
(b) "Covered person" means an individual that: 8
1. Is an employer-sponsored group member or a dependent of an 9
employer-sponsored group member; and 10
2. Receives health benefits under an employer-sponsored group health 11
insurance policy, certificate, plan, or contract; 12
(c) "Dependent of an employer-sponsored group member" or "dependents of 13
an employer-sponsored group member" means an individual or individuals 14
that are entitled to receive health benefits under an employer-sponsored 15
group health insurance policy, certificate, plan, or contract solely due to a 16
relationship to an employer-sponsored group member; 17
(d) "Employer" does not include a federal, state, or local government, 18
including a: 19
1. Federal, state, or local government entity, agency, or instrumentality; 20
and 21
2. Public school district or public institution of education; 22
(e) "Employer-sponsored group health insurance policy, certificate, plan, or 23
contract" includes limited-scope dental or vision benefits offered by an 24
employer under a separate insurance policy, certificate, plan, or contract; 25
(f) "Employer-sponsored group member" means an individual that is entitled 26
to receive health benefits under an employer-sponsored group health 27 UNOFFICIAL COPY 24 RS BR 1913
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insurance policy, certificate, plan, or contract as a member of the insured 1
group; and 2
(g) "Insurer" has the same meaning as in KRS 304.17A-005, except for 3
purposes of this section, the term does not include a self-insurer of a 4
governmental plan. 5
(2) Notwithstanding any other law, an insurer may deliver all communications 6
relating to an employer-sponsored group health insurance policy, certificate, 7
plan, or contract to a covered person by electronic means if: 8
(a) The employer consents to electronic delivery of communications on behalf 9
of the covered person; and 10
(b) The insurer complies with subsection (4) of this section. 11
(3) An employer may consent to the electronic delivery of communications under 12
subsection (2) of this section if the employer confirms the following for the 13
covered person: 14
(a) The covered person is: 15
1. An employer-sponsored group member that routinely uses electronic 16
communications during the normal course of employment or 17
otherwise; or 18
2. A dependent of an employer-sponsored group member referenced in 19
subparagraph 1. of this paragraph; and 20
(b) Either: 21
1. If the covered person is an employer-sponsored group member, the 22
covered person: 23
a. Was given an opportunity to opt out of delivery to the employer-24
sponsored group member and dependents of the employer-25
sponsored group member by electronic means; and 26
b. Will be given an opportunity to opt out of delivery to the 27 UNOFFICIAL COPY 24 RS BR 1913
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employer-sponsored group member and dependents of the 1
employer-sponsored group member by electronic means on an 2
annual basis; or 3
2. If the covered person is not an employer-sponsored group member, the 4
covered person is a dependent of an employer-sponsored group 5
member referenced in subparagraph 1. of this paragraph. 6
(4) Insurers that provide electronic delivery of communications under this section 7
shall: 8
(a) Comply with the: 9
1. Federal Electronic Signatures in Global and National Commerce Act, 10
15 U.S.C. sec. 7001 et seq.; and 11
2. Uniform Electronic Transactions Act, KRS 369.101 to 369.120; 12
(b) Not take adverse action against a covered person because the person opts 13
out, or is opted out, of electronic delivery of communications under this 14
section; and 15
(c) Document compliance with this section. 16
Section 2. This Act applies to contracts entered or renewed on or after the 17
effective date of this Act. 18