Session Law

Identifying Information:L. 2001 ch. 178
Other Identifying Information:2001 Senate Substitute for House Bill 2033
Tax Type:Other
Brief Description:An Act concerning insurance; providing coverage for certain mental health conditions; amending K.S.A. 40-2,103, 40-2,105 and 40-19c09 and repealing the existing sections.
Keywords:


Body:


CHAPTER 178

SENATE Substitute for HOUSE BILL No. 2033


An Act concerning insurance; providing coverage for certain mental health conditions;

amending K.S.A. 40-2,103, 40-2,105 and 40-19c09 and repealing the existing sections.

Be it enacted by the Legislature of the State of Kansas:

New Section 1. (a) (1) Any group health insurance policy, medical

service plan, contract, hospital service corporation contract, hospital and

medical service corporation contract, fraternal benefit society or health

maintenance organization which provides coverage for mental health ben-

efits and which is delivered, issued for delivery, amended or renewed on

or after January 1, 2002, shall include coverage for diagnosis and treat-

ment of mental illnesses. Except as provided in paragraph (2), such cov-

erage shall be subject to the same deductibles, coinsurance and other

limitations as apply to other covered services.

(2) The coverage required by paragraph (1) shall include annual cov-

erage for both 45 days of in-patient care for mental illness and for 45

visits for out-patient care for mental illness.

(b) Notwithstanding the provisions of K.S.A. 40-2249a, and amend-

ments thereto, the state insurance department shall deliver to the presi-

dent of the senate and to the speaker of the house of representatives on

or before January 1, 2003, a report indicating the impact of providing

mental illness benefits required by this act. Such report shall include

information regarding access to and usage of such services and the cost

of such services.

(c) For the purposes of this section, ``mental illness'' means the fol-

lowing: Schizophrenia, schizoaffective disorder, schizophreniform disor-

der, brief reactive psychosis, paranoid or delusional disorder, atypical psy-

chosis, major affective disorders (bipolar and major depression),

cyclothymic and dysthymic disorders, obsessive compulsive disorder,

panic disorder, pervasive developmental disorder, including autism, at-

tention deficit disorder and attention deficit hyperactive disorder as such

terms are defined in the diagnostic and statistical manual of mental dis-

orders, fourth edition, (DSM-IV, 1994) of the American psychiatric as-

sociation but shall not include conditions not attributable to a mental

disorder that are a focus of attention or treatment.

(d) The provisions of this section shall be applicable to health main-

tenance organizations organized under article 32 of chapter 40 of the

Kansas Statutes Annotated.

(e) The provisions of this section shall not apply to any medicare

supplement policy of insurance, as defined by the commissioner of in-

surance by rule and regulation.

(f) The provisions of this section shall be applicable to the Kansas

state employees health care benefits program and municipal funded

pools.

(g) The provisions of this section shall not apply to any policy or cer-

tificate which provides coverage for any specified disease, specified ac-

cident or accident only coverage, credit, dental, disability income, hospital

indemnity, long-term care insurance as defined by K.S.A. 40-2227 and

amendments thereto, vision care or any other limited supplemental ben-

efit nor to any medicare supplement policy of insurance as defined by

the commissioner of insurance by rule and regulation, any coverage issued

as a supplement to liability insurance, workers compensation or similar

insurance, automobile medical-payment insurance or any insurance un-

der which benefits are payable with or without regard to fault, whether

written on a group, blanket or individual basis.

(h) From and after January 1, 2002, the provisions of K.S.A. 40-2,105,

and amendments thereto, shall not apply to mental illnesses as defined

in this act.

(i) There shall be no coverage under this section for evaluations and

diagnostic tests ordered or requested in connection with criminal actions,

divorce, child custody or child visitation proceedings.

New Sec. 2. On and after January 1, 2002, any group health insur-

ance policy, nonprofit medical and hospital service corporation contract,

fraternal benefit society, health maintenance organization, municipal

group funded pool and state employee benefit program which provides

coverage for prescription drugs, other than prescription drugs adminis-

tered in a hospital or physician's office shall provide coverage for psycho-

therapeutic drugs used for the treatment of mental illness under terms

and conditions no less favorable than coverage provided for other pre-

scription drugs.

New Sec. 3. The provisions of K.S.A. 40-2249a, and amendments

thereto, shall not apply to this act.

Sec. 4. On and after January 1, 2002, K.S.A. 40-2,103 is hereby

amended to read as follows: 40-2,103. The requirements of K.S.A. 40-

2,100, 40-2,101, 40-2,102, 40-2,104, 40-2,105, 40-2,114 and 40-2250, and

amendments thereto and K.S.A. 40-2,160 and, 40-2,165 through 40-

2,170, inclusive, 40-2250, section 1 and section 2, and amendments

thereto, shall apply to all insurance policies, subscriber contracts or cer-

tificates of insurance delivered, renewed or issued for delivery within or

outside of this state or used within this state by or for an individual who

resides or is employed in this state.

Sec. 5. On and after January 1, 2002, K.S.A. 40-2,105 is hereby

amended to read as follows: 40-2,105. (a) On or after the effective date

of this act, every insurer which issues any individual or group policy of

accident and sickness insurance providing medical, surgical or hospital

expense coverage for other than specific diseases or accidents only and

which provides for reimbursement or indemnity for services rendered to

a person covered by such policy in a medical care facility, must provide

for reimbursement or indemnity under such individual policy or under

such group policy, except as provided in subsection (d), which shall be

limited to not less than 30 days per year when such person is confined

for treatment of alcoholism, drug abuse or nervous or mental conditions

in a medical care facility licensed under the provisions of K.S.A. 65-429

and amendments thereto, a treatment facility for alcoholics licensed un-

der the provisions of K.S.A. 65-4014 and amendments thereto, a treat-

ment facility for drug abusers licensed under the provisions of K.S.A. 65-

4605 and amendments thereto, a community mental health center or

clinic licensed under the provisions of K.S.A. 75-3307b and amendments

thereto or a psychiatric hospital licensed under the provisions of K.S.A.

75-3307b and amendments thereto. Such individual policy or such group

policy shall also provide for reimbursement or indemnity, except as pro-

vided in subsection (d), of the costs of treatment of such person for al-

coholism, drug abuse and nervous or mental conditions, limited to not

less than 100% of the first $100, 80% of the next $100 and 50% of the

next $1,640 in any year and limited to not less than $7,500 in such person's

lifetime, in the facilities enumerated when confinement is not necessary

for the treatment or by a physician licensed or psychologist licensed to

practice under the laws of the state of Kansas.

(b) For the purposes of this section ``nervous or mental conditions''

means disorders specified in the diagnostic and statistical manual of men-

tal disorders, fourth edition, (DSM-IV, 1994) of the American psychiatric

association but shall not include conditions not:

(1) Not attributable to a mental disorder that are a focus of attention

or treatment (DSM-IV, 1994); and

(2) defined as a mental illness in section 1 and amendments thereto.

(c) The provisions of this section shall be applicable to health main-

tenance organizations organized under article 32 of chapter 40 of the

Kansas Statutes Annotated.

(d) There shall be no coverage under the provisions of this section

for any assessment against any person required by a diversion agreement

or by order of a court to attend an alcohol and drug safety action program

certified pursuant to K.S.A. 8-1008 and amendments thereto or for eval-

uations and diagnostic tests ordered or requested in connection with crim-

inal actions, divorce, child custody or child visitation proceedings.

(e) The provisions of this section shall not apply to any medicare

supplement policy of insurance, as defined by the commissioner of in-

surance by rule and regulation.

(f) The provisions of this section shall be applicable to the Kansas

state employees health care benefits program developed and provided by

the Kansas state employees health care commission.

(g) The outpatient coverage provisions of this section shall not apply

to a high deductible health plan as defined in Section 301 of P.L. 104-

191 and any amendments thereto if such plan is purchased in connection

with a medical savings account pursuant to that act. After the amount of

eligible deductible expenses have been paid by the insured, the outpatient

costs of treatment of the insured for alcoholism, drug abuse and nervous

or mental conditions shall be paid on the same level they are provided

for a medical condition, subject to the yearly and lifetime maximums

provided in subsection (a).

Sec. 6. On and after January 1, 2002, K.S.A. 40-19c09 is hereby

amended to read as follows: 40-19c09. (a) Corporations organized under

the nonprofit medical and hospital service corporation act shall be subject

to the provisions of the Kansas general corporation code, articles 60 to

74, inclusive, of chapter 17 of the Kansas Statutes Annotated, applicable

to nonprofit corporations, to the provisions of K.S.A. 40-214, 40-215, 40-

216, 40-218, 40-219, 40-222, 40-223, 40-224, 40-225, 40-226, 40-229, 40-

230, 40-231, 40-235, 40-236, 40-237, 40-247, 40-248, 40-249, 40-250, 40-

251, 40-252, 40-254, 40-2,100, 40-2,101, 40-2,102, 40-2,103, 40-2,104,

40-2,105, 40-2,116, 40-2,117, 40-2,153, 40-2,154, 40-2,160, 40-2,161, 40-

2,163 through 40-2,170, inclusive, 40-2a01 et seq., 40-2111 to 40-2116,

inclusive, 40-2215 to 40-2220, inclusive, 40-2221a, 40-2221b, 40-2229,

40-2230, 40-2250, 40-2251, 40-2253, 40-2254, 40-2401 to 40-2421, inclu-

sive, and 40-3301 to 40-3313, inclusive, K.S.A. 40-2,153, 40-2,154, 40-

2,160, 40-2,161, 40-2,163, 40-2,164 and 40-2,165 through 40-2,170 sec-

tion 1 and section 2, and amendments thereto, except as the context

otherwise requires, and shall not be subject to any other provisions of the

insurance code except as expressly provided in this act.

(b) No policy, agreement, contract or certificate issued by a corpo-

ration to which this section applies shall contain a provision which ex-

cludes, limits or otherwise restricts coverage because medicaid benefits

as permitted by title XIX of the social security act of 1965 are or may be

available for the same accident or illness.

(c) Violation of subsection (b) shall be subject to the penalties pre-

scribed by K.S.A. 40-2407 and 40-2411, and amendments thereto.

New Sec. 7. Sections 1, 2 and 3, and amendments thereto, shall be

known as the Kansas mental health parity act.

Sec. 8. On January 1, 2002, K.S.A. 40-2,103, 40-2,105 and 40-19c09

are hereby repealed.

Sec. 9. This act shall take effect and be in force from and after its

publication in the statute book.

Approved May 21, 2000.


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Date Composed: 09/25/2001 Date Modified: 09/25/2001