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28 | 28 | | STATE OF OKLAHOMA |
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29 | 29 | | |
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30 | 30 | | 2nd Session of the 58th Legislature (2022) |
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31 | 31 | | |
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32 | 32 | | HOUSE BILL 3826 By: Newton |
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33 | 33 | | |
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34 | 34 | | |
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37 | 37 | | |
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38 | 38 | | AS INTRODUCED |
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39 | 39 | | |
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40 | 40 | | An Act relating to vision insurance; amending 74 O.S. |
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41 | 41 | | 2021, Section 1374, which relates to vision plans; |
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42 | 42 | | requiring maximum amount for bond surety plans in |
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43 | 43 | | vision plans; and providing an effective date . |
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44 | 44 | | |
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50 | 50 | | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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51 | 51 | | SECTION 1. AMENDATORY 74 O.S. 2021, Section 1374, is |
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52 | 52 | | amended to read as follows : |
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53 | 53 | | Section 1374. A. For the plan year beginning January 1, 201 7, |
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54 | 54 | | and for each year thereafter, it shall be the responsibility of the |
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55 | 55 | | Office of Management and Enterprise Services to offer vision plans |
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56 | 56 | | to participants during the open enrollment per iod. Providers of |
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57 | 57 | | plans eligible for selection shall submit information requested by |
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58 | 58 | | the Office of Management and Enterp rise Services. For the plan year |
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59 | 59 | | beginning January 1, 2022, and for each year thereafter, the Office |
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60 | 60 | | of Management and Enterprise Serv ices shall have the authority to |
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61 | 61 | | renew vision plan contracts with plan p roviders for succeeding one - |
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62 | 62 | | year terms if the pro vider had a contract for the immediately |
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63 | 63 | | |
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88 | 88 | | |
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89 | 89 | | preceding year. The Office of Management and Enterprise Services |
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90 | 90 | | may, at its discretion, requ ire the provider to submit inf ormation |
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91 | 91 | | including, but not limited to, ra te schedules, contact information |
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92 | 92 | | for the plan, policy limits and applicable deductibles and billing |
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93 | 93 | | practices of the plan prior to the renewal. Plans eligible for |
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94 | 94 | | selection shall meet or exceed the following crit eria: |
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95 | 95 | | 1. Has in place a statewide network of at least one hundred |
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96 | 96 | | fifty providers. "Providers", for purposes of this section, means |
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97 | 97 | | Optometrists (OD), Ophthalmologists (MD), and Ophthalmologists (DO) |
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98 | 98 | | which shall be counted o nce regardless of the number o f locations |
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99 | 99 | | where they may practice. Opti cal shops and retail optical locations |
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100 | 100 | | shall not be listed as providers. The company offering the vision |
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101 | 101 | | plan must have a direct relationship with each provider on its |
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102 | 102 | | panel, and may not lease, borrow, or otherwis e obtain use of a |
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103 | 103 | | provider panel from anot her company. This would not prevent a |
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104 | 104 | | company from offering its plan through one corporate entity and |
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105 | 105 | | administering the plan or provider panel through another legal |
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106 | 106 | | entity of the same organization so long as the e ntity receiving |
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107 | 107 | | premiums remains legally r esponsible for the payment of benefits. |
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108 | 108 | | Providers must be actively engaged in providing the services offered |
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109 | 109 | | under the vision plan they represent; |
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110 | 110 | | 2. Has operated in Oklahoma for at least five (5) years; |
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111 | 111 | | provided, that an immediately prior operation in O klahoma of a |
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112 | 112 | | nonsurviving corporation that merges into an affiliated corporation |
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138 | 138 | | |
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139 | 139 | | shall be counted in determining whether the surviving corporation |
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140 | 140 | | has operated a plan in Oklahoma for f ive (5) years; |
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141 | 141 | | 3. Is properly licensed, registered, certified or author ized to |
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142 | 142 | | operate its business in this state by the Insurance Department. |
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143 | 143 | | Vision plans must be offered by the company administering the plan, |
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144 | 144 | | not by an agent or third party. A company shall offer only one |
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145 | 145 | | vision plan and rate schedule for each plan year; |
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146 | 146 | | 4. Presents accurate product information in a rep roducible |
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147 | 147 | | format not to exceed two pages; and |
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148 | 148 | | 5. Vision plans must provide an examination, frames and lenses, |
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149 | 149 | | and/or contact lenses an d some form of indemnified pay ment to the |
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150 | 150 | | contracted providers for each component of the benefits, i.e., the |
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151 | 151 | | exam, frames and lenses and/or contact lenses. This does not |
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152 | 152 | | eliminate discounted supplementary benefits under a qualified plan, |
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153 | 153 | | so long as such benefits pertain to vision care . |
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154 | 154 | | B. Any administrative fees imposed by t he Office of Management |
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155 | 155 | | and Enterprise Services s hall be applied equally to all qualified |
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156 | 156 | | vision plans. There shall be no additional requirements imposed on |
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157 | 157 | | a vision plan other than t he proper licensing, certifica tion or |
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158 | 158 | | authorization to operate its busin ess by the Oklahoma Insurance |
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159 | 159 | | Department. |
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160 | 160 | | C. No more than two Oklahoma -based vision care benefits |
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161 | 161 | | companies that meet the criteria as specified in subsection A of |
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162 | 162 | | this section and no more than two out-of-state vision care benefits |
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189 | 189 | | companies that meet the criteria as specified in subsection A of |
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190 | 190 | | this section shall be offered as vendors for enrollment in any state |
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191 | 191 | | employee benefit offering. For purposes of this subsection, an |
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192 | 192 | | "Oklahoma-based vision care benefits com pany" shall be defined as |
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193 | 193 | | follows: |
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194 | 194 | | 1. A vision care benefits company that has a home offic e, |
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195 | 195 | | customer service and administration located within the State of |
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196 | 196 | | Oklahoma and is subject to Oklahoma state income taxes; or |
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197 | 197 | | 2. A vision care benefits company that has a majority of |
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198 | 198 | | ownership interest held either directly or indirectly by residents |
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199 | 199 | | of the State of Oklahoma and is subject to Oklahoma state income |
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200 | 200 | | taxes. |
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201 | 201 | | D. In the event the number of vision companies submitting |
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202 | 202 | | offerings exceeds the amount permitted under subsection C of this |
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203 | 203 | | section, the Office of Management and Enterprise Services shall have |
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204 | 204 | | the authority to reject excess offerings based upon failures to meet |
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205 | 205 | | bid requirements or for providing lesser value for the State of |
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206 | 206 | | Oklahoma. |
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207 | 207 | | E. The maximum insurance requirement allowed by a state age ncy |
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208 | 208 | | or entity for vision care benefits compani es shall not exceed One |
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209 | 209 | | Million Dollars ($1,000,000.00). |
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236 | 236 | | SECTION 2. This act shall become effective November 1, 2022. |
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237 | 237 | | |
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238 | 238 | | 58-2-10269 KN 01/20/22 |
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