Commonwealth of Kentucky s78

COMMONWEALTH OF KENTUCKY STATE FISCAL NOTE STATEMENT

GENERAL ASSEMBLY LEGISLATIVE RESEARCH COMMISSION 2005 REGULAR SESSION 2004-2006 INTERIM

MEASURE

(X) 2005 BR No. 0328 (X) HB Bill No. 144

( ) Resolution No. ( ) Amendment No.

SUBJECT/TITLE An Act Relating to Health Benefit Plans

SPONSOR Mike Harmon

NOTE SUMMARY

Fiscal Analysis: Impact X No Impact Indeterminable Impact Level(s) of Impact: State Local Federal

Budget Unit(s) Impact

Fund(s) Impact: General Road Federal Restricted Agency (Type) (Other) FISCAL SUMMARY ______Future Annual Fiscal Estimates 2003-2004 2004-2005 2005-2006 Rate of Change Revenues (+/-) Expenditures (+/-) Net Effect ______

MEASURE'S PURPOSE: This measure will allow an insurer that offers, renews, or delivers a health benefit plan in Kentucky which includes all mandated benefits specified by KRS Chapter 304 to offer additional health benefit plans which excludes from coverage any or all mandated health insurance benefits specified in KRS Chapter 304, except for mandated benefits specified by federal law.

PROVISION/MECHANICS: Creates a new section of KRS Chapter 304 which will allow insurers in the state of Kentucky to offer plans not containing benefits mandated by the state of Kentucky. It establishes specific standards for policy provisions; Prohibits policy provisions which in the opinion of the commissioner, are unjust, unfair, or unfairly discriminatory to any person insured or proposed for coverage under KRS Chapter 304. Establishes a minimum standard for benefits under KRS Chapter 304; Prescribes a standard form brochure for potential buyers for improvement of buyer understanding; Provides a disclosure statement which shall clearly state that all state- mandated health insurance benefits are not covered by the plans being offered; Provides a method of determining the premium rates the insurer may estabish for health benefit plans that contain at least one (1), but fewer than all of the state-mandated insurance benefits . 2005RS BR0328-HB 144 February 4, 2005 Page 2

FISCAL EXPLANATION: No Fiscal Impact

DATA SOURCE(S) Environmental and Public Protection Cabinet

NOTE NO. 21 PREPARER Jack McNear REVIEW JAM DATE 02/04/05

LRC 2005RS-BR0328-HB 144