00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 29                                                                              
01 "An Act requiring that the cost of contraceptives be included in certain health                                         
02 care insurance coverage."                                                                                               
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
04    * Section 1.  The uncodified law of the State of Alaska is amended by adding a new                                 
05 section to read:                                                                                                        
06  SHORT TITLE.  This Act may be known as the Contraceptive Equity Act of 2000.                                           
07    * Sec. 2.  The uncodified law of the State of Alaska is amended by adding a new section                            
08 to read:                                                                                                                
09  FINDINGS.  The legislature finds that                                                                                  
10   (1)  maternal and infant health are greatly improved when women have access                                           
11 to contraceptive supplies to prevent unintended pregnancies;                                                            
12   (2)  because many Americans hope to complete their families with two or three                                         
13 children, many women spend the majority of their reproductive lives trying to prevent                                   
14 pregnancy;                                                                                                              
01   (3)  research has shown that 49 percent of all large group insurance plans do                                         
02 not routinely provide coverage for contraceptive drugs and devices even though virtually all                            
03 health care plans cover prescription drugs generally;                                                                   
04   (4)  the absence of prescription contraceptive coverage is largely responsible                                        
05 for the fact that women spend 68 percent more in out-of-pocket expenses for health care than                            
06 men; and                                                                                                                
07   (5)  requiring insurance coverage for prescription drugs and devices for                                              
08 contraception is in the public interest in improving the health of mothers, children, and                               
09 families and in providing for health care insurance coverage that is fairer and more equitable.                         
10    * Sec. 3.  AS 21.42 is amended by adding a new section to read:                                                    
11  Sec. 21.42.390.  Coverage for contraceptives.  (a)  Except with respect to                                          
12 limited benefit health care insurance or health care insurance purchased by a religious                                 
13 employer, a health care insurer that offers, issues for delivery, delivers, or renews in                                
14 this state a health care insurance plan that provides coverage for prescription drugs on                                
15 an outpatient basis shall provide coverage for any prescribed drug or device approved                                   
16 by the United States Food and Drug Administration for use as a contraceptive.  The                                      
17 coverage required under this section is subject to standard policy provisions applicable                                
18 to other benefits, including deductible or copayment provisions, within the constraints                                 
19 of (b) of this section.                                                                                                 
20  (b)  An insurer may not impose on a person receiving prescription contraceptive                                       
21 benefits a                                                                                                              
22   (1)  copayment, coinsurance payment, or fee that is not equally imposed                                              
23 on all individuals in the same benefit category, class, coinsurance level, or copayment                                 
24 level receiving benefits for prescription drugs; or                                                                     
25   (2)  reduction in allowable reimbursement for prescription drug benefits.                                            
26  (c)  This section may not be construed to                                                                             
27   (1)  require coverage for prescription coverage benefits in a contract,                                              
28 policy, or plan that does not otherwise provide coverage for prescription drugs;                                        
29   (2)  preclude the use of closed formularies if the formularies include                                               
30 oral, implant, and injectable contraceptive drugs, intrauterine devices, and prescription                               
31 barrier methods;                                                                                                        
01   (3)  require an insurer to provide coverage for abortion.                                                            
02  (d)  A health care insurance plan that, under (a) of this section, is exempt from                                     
03 providing coverage for contraceptives must contain a written notice that prescription                                   
04 contraceptives are not included under the policy.                                                                       
05  (e)  In this section,                                                                                                 
06   (1)  "limited benefit insurance" means accident and sickness insurance                                               
07 designed, advertised, and marketed to supplement major medical insurance, including                                     
08 accident only, Civilian Health and Medical Program of the Uniformed Services                                            
09 (CHAMPUS) supplement, dental, disability income, fixed indemnity, long-term care,                                       
10 Medicare supplement, specific disease, vision, and other accident and sickness                                          
11 insurance other than basic hospital expense, basic medical-surgical expense, or major                                   
12 medical insurance;                                                                                                      
13   (2)  "religious employer" means an employer                                                                          
14   (A)  with a primary purpose of instilling religious principles;                                                     
15   (B)  that primarily employs individuals who share the religious                                                     
16 principles of the employer;                                                                                             
17   (C)  that primarily serves individuals who share the employer's                                                     
18 religious principles; and                                                                                               
19   (D)  that does not receive public funding.