Kansas Senate Bill SB553

Kansas 2023-2024 Regular Session

• Introduced: 3/14/24
• Refer: 3/15/24
• Report Pass: 3/26/24
• Engrossed: 4/1/24
• Refer: 4/1/24
• Failed: 4/30/24

Caption

Permitting a plan sponsor to authorize electronic delivery as the standard method of delivery of all plan documents and health insurance identification cards made to health benefit plan covered persons covered by a health benefit plan.

Impact

If enacted, SB553 would change the requirements surrounding how insurers provide notices and documents to health benefit plan covered persons. Specifically, it empowers plan sponsors to provide consent for electronic delivery on behalf of covered individuals, provided certain conditions are met. This includes ensuring that the covered persons routinely use electronic communications in their work. Insurers will also have to provide individuals with a clear opportunity to opt out of electronic communication and choose traditional mail instead.

Summary

Senate Bill 553 (SB553) aims to modernize the delivery of communications related to health benefit plans by allowing plan sponsors to authorize electronic delivery of plan documents and health insurance identification cards. The bill seeks to amend existing statutes regarding health insurance communications to accommodate the growing use of digital means for communication in the insurance industry. The intent is to streamline processes and enhance efficiency for both insurers and insured individuals.

Contention

While digital communication can foster efficiency, SB553 raises some notable points of contention. Critics may express concerns regarding data privacy and the potential for important documents to be missed due to reliance on electronic communications. There might be apprehensions about whether all individuals truly have equal access and ability to utilize electronic communications, particularly among less technologically savvy populations or those lacking reliable internet access. This aspect is essential for ensuring that transparency and consumer rights are maintained as the insurance industry evolves.

Additional_points

Additionally, SB553 repeals previous sections of the law that governed the delivery of insurance documents, indicating a significant shift in how such communications must be handled going forward. The bill also reaffirms the legal effectiveness of electronic communications while ensuring compliance with various consumer protection laws.