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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
HOUSE BILL 3826 By: Newton
AS INTRODUCED
An Act relating to vision insurance; amending 74 O.S.
2021, Section 1374, which relates to vision plans;
requiring maximum amount for bond surety plans in
vision plans; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 1374, is
amended to read as follows :
Section 1374. A. For the plan year beginning January 1, 201 7,
and for each year thereafter, it shall be the responsibility of the
Office of Management and Enterprise Services to offer vision plans
to participants during the open enrollment per iod. Providers of
plans eligible for selection shall submit information requested by
the Office of Management and Enterp rise Services. For the plan year
beginning January 1, 2022, and for each year thereafter, the Office
of Management and Enterprise Serv ices shall have the authority to
renew vision plan contracts with plan p roviders for succeeding one -
year terms if the pro vider had a contract for the immediately
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preceding year. The Office of Management and Enterprise Services
may, at its discretion, requ ire the provider to submit inf ormation
including, but not limited to, ra te schedules, contact information
for the plan, policy limits and applicable deductibles and billing
practices of the plan prior to the renewal. Plans eligible for
selection shall meet or exceed the following crit eria:
1. Has in place a statewide network of at least one hundred
fifty providers. "Providers", for purposes of this section, means
Optometrists (OD), Ophthalmologists (MD), and Ophthalmologists (DO)
which shall be counted o nce regardless of the number o f locations
where they may practice. Opti cal shops and retail optical locations
shall not be listed as providers. The company offering the vision
plan must have a direct relationship with each provider on its
panel, and may not lease, borrow, or otherwis e obtain use of a
provider panel from anot her company. This would not prevent a
company from offering its plan through one corporate entity and
administering the plan or provider panel through another legal
entity of the same organization so long as the e ntity receiving
premiums remains legally r esponsible for the payment of benefits.
Providers must be actively engaged in providing the services offered
under the vision plan they represent;
2. Has operated in Oklahoma for at least five (5) years;
provided, that an immediately prior operation in O klahoma of a
nonsurviving corporation that merges into an affiliated corporation
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shall be counted in determining whether the surviving corporation
has operated a plan in Oklahoma for f ive (5) years;
3. Is properly licensed, registered, certified or author ized to
operate its business in this state by the Insurance Department.
Vision plans must be offered by the company administering the plan,
not by an agent or third party. A company shall offer only one
vision plan and rate schedule for each plan year;
4. Presents accurate product information in a rep roducible
format not to exceed two pages; and
5. Vision plans must provide an examination, frames and lenses,
and/or contact lenses an d some form of indemnified pay ment to the
contracted providers for each component of the benefits, i.e., the
exam, frames and lenses and/or contact lenses. This does not
eliminate discounted supplementary benefits under a qualified plan,
so long as such benefits pertain to vision care .
B. Any administrative fees imposed by t he Office of Management
and Enterprise Services s hall be applied equally to all qualified
vision plans. There shall be no additional requirements imposed on
a vision plan other than t he proper licensing, certifica tion or
authorization to operate its busin ess by the Oklahoma Insurance
Department.
C. No more than two Oklahoma -based vision care benefits
companies that meet the criteria as specified in subsection A of
this section and no more than two out-of-state vision care benefits
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companies that meet the criteria as specified in subsection A of
this section shall be offered as vendors for enrollment in any state
employee benefit offering. For purposes of this subsection, an
"Oklahoma-based vision care benefits com pany" shall be defined as
follows:
1. A vision care benefits company that has a home offic e,
customer service and administration located within the State of
Oklahoma and is subject to Oklahoma state income taxes; or
2. A vision care benefits company that has a majority of
ownership interest held either directly or indirectly by residents
of the State of Oklahoma and is subject to Oklahoma state income
taxes.
D. In the event the number of vision companies submitting
offerings exceeds the amount permitted under subsection C of this
section, the Office of Management and Enterprise Services shall have
the authority to reject excess offerings based upon failures to meet
bid requirements or for providing lesser value for the State of
Oklahoma.
E. The maximum insurance requirement allowed by a state age ncy
or entity for vision care benefits compani es shall not exceed One
Million Dollars ($1,000,000.00).
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SECTION 2. This act shall become effective November 1, 2022.
58-2-10269 KN 01/20/22