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Compliance Corner

State Updates

Expanded Use of Telemedicine

April 13, 2021

Effective April 1, 2021, Senate Bill 283 (S.B. 283) continues the state's response to the ongoing COVID-19 public health emergency by extending the expanded use of telemedicine, among other items. Of note, physicians are now able to issue a prescription for a controlled substance without conducting an in-person examination. In addition, a physician under quarantine may practice telemedicine, as can out-of-state physicians without having a Kansas license (meeting certain requirements).

This new law is not directed at employers, but it does provide additional support for the use of telemedicine by plan participants.

S.B. 283 »

Commissioner Reminds Providers of Obligations Under FFCRA and CARES

December 22, 2020

On December 16, 2020, Commissioner Schmidt published an open letter to providers of health services in the state about the administration of COVID-19 testing to residents. In the letter, she reminded providers of the fact that the FFCRA and CARES requires health pans and insurers must provide coverage for diagnostic COVID-19 testing, including the administration of the tests, without cost sharing. Federal law allows the provider to be reimbursed at a rate negotiated with the plan or insurer, or absent such an arrangement, at a rate listed by the provider on its public website. The commissioner admonished providers against engaging in price gouging practices when charging insurers and plans for these services.

Group health plan sponsors should be aware of these developments.

Commissioner Schmidt’s Letter to Providers »

Statute Creates Workshare Program

September 29, 2020

On June 8, 2020, Gov. Kelly signed HB 2016 into law. This statute, among other things, creates a workshare program to help employers who face making layoffs keep their employees. If the employer meets certain requirements under the program, the employer may reduce the number of hours its workforce can work (and pay the workers a correspondingly reduced rate) and the state will pay up to 20% of the rest of the workers’ normal pay. Among the requirements under the program, the employer must agree that certain benefits provided to those workers, such as health insurance, will continue to be provided to those workers as if they were still working regular hours.

Employers who are facing economic pressure to lay off workers should be aware of this development, and the way it would particularly affect benefits such as health insurance.

HB 2016 »
Application »

Executive Order Regarding Telehealth Services

March 31, 2020

On March 20, 2020, Gov. Kelley issued Executive Order 20-08 to encourage citizens to use telehealth services whenever possible. To that end, the bulletin prohibits the Kansas physician licensing board from enforcing any statute, rule or regulation that requires physicians to conduct an in-person examination of a patient prior to the issuance of a prescription, as long as the physician otherwise complies with the executive order. In addition, the executive order encourages physicians to utilize telemedicine services and temporarily expands telemedicine, including allowing out-of-state physicians to use telemedicine with patients without having a Kansas license (meeting certain requirements).

This order is not directed at employers, but it does provide additional support for the use of telemedicine by plan participants.

Executive Order 20-08 »

COVID-19 Insurance Updates

March 31, 2020

On March 13, 2020, the Insurance Department issued a press release stating that all major carriers in the state volunteered to waive cost sharing requirements relating to the COVID-19 testing.

Employers with policies regulated by Kansas should be aware of this development.

Press Release »

Plans Can’t Deny Mammograms

August 21, 2018

On Aug. 8, 2018, Commissioner of Insurance Selzer issued Bulletin 2018-2. The bulletin clarifies the requirements found in K.S.A. 40-2230, which require insurers that cover laboratory or x-ray services to cover mammograms. The Bulletin clarifies that for these purposes, the term “mammogram” includes tomosynthesis (3D mammography). Additionally, the cost sharing limits imposed on tomosynthesis must be the same as the ones applied to any other type of mammography.

The clarification in this Bulletin applies to plan years beginning on or after Jan. 1, 2019.

Bulletin 2018-2 »

Plans Can’t Exclude Telemedicine

June 12, 2018

On May 12, 2018, Gov. Colyer sign HB 2028 into law, establishing the Kansas Telemedicine Act. This act provides that plans can’t exclude health care services from coverage solely because they’re provided through telemedicine rather than through in-person treatment. Under the Act, telemedicine means the delivery of health care services for a plan participant that’s located at an originating site from a health care provider located at a distant site.

That Act also defines which practitioners can constitute health care providers and mandates that plans can’t require additional documentation of telemedicine patients. Additionally, insurance issuers must establish payment or reimbursement for telemedicine expenses in the same way they establish them for in-person services.

Plan sponsors should consider this requirement to offer telemedicine for fully-insured plans based out of Kansas.

HB 2028 »

Kansas Enacts Pharmacy Patients Fair Practices Act

June 12, 2018

On March 29, 2018, Gov. Colyer signed SB 351 into law, enacting the Pharmacy Patients Fair Practices Act. This Act requires that copayments on prescription drugs not exceed the total charges submitted by the network pharmacy. Additionally, pharmacists and pharmacies have the right to provide individuals covered under the plan with information on the amount of the cost share of the prescription and information on more affordable alternatives, if available. The law doesn’t apply to polices that provide coverage for limited benefits, such as specified disease, accident-only, credit, dental, disability income, hospital indemnity or long-term care insurance coverage.

The law is effective for contracts entered into or renewed on or after Jan. 1, 2019. Although this law doesn’t directly affect employer plan sponsors, they should be aware of plan participants’ rights under this law.

SB 351 »

KS State Updates - 2015 Jan 22 No.01

September 22, 2015

On Aug. 25, 2015, the Kansas Insurance Department announced that they had finalized rates for 2016 individual policies sold through the marketplace. The rates increased from 9.4 percent to 25.4 percent compared to 2015 premium rates. The department expects 96 plans to be available through the marketplace, 76 individual plans and 20 group plans. Open enrollment begins Nov. 1, 2015 and runs through Jan. 31, 2016.

While the announcement does not directly affect employers, it is important for employers to understand the marketplace options and they may compare to the employer’s offerings.

Press Release »

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