SENATE Substitute for HOUSE BILL No. 2033
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
(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-
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-
(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.
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.
Date Composed: 09/25/2001 Date Modified: 09/25/2001