KRS 304.17A-768: Voucher -- Redemption -- Payment of premium amount -- Fee to

process voucher -- Administrative regulations.

(1) A voucher issued by an employer shall only be redeemable at an insurance

purchasing outlet. A voucher shall be nonassignable and nontransferable.

(2) An insurance purchasing outlet shall redeem the value of the voucher with the

employer. If an employer fails to redeem the value of the voucher, the insurance

purchasing outlet shall notify the eligible person. An eligible person may pay the

premium amount directly to the insurance purchasing outlet if the employer fails to

redeem the value of the voucher.

(3) An insurance purchasing outlet shall pay an insurer the appropriate premium

amount on or before the premium due date. If an insurance purchasing outlet fails to

pay the premium amount on or before the due date the following shall occur:

(a) An insurer shall issue the insurance purchasing outlet a notice of termination

if the premium amount is not paid pursuant to KRS 304.17A-245;

(b) Upon receipt of a notice of termination from the insurer, the insurance

purchasing outlet shall issue the eligible member a notice of termination; and

(c) The insurer shall notify the eligible person of his or her conversion rights

under KRS 304.18-110.

(4) An insurer may allow for a thirty-one (31) day grace period for the premium amount

to be paid by the insurance purchasing outlet.

(5) The department shall prescribe the items to be included on a voucher.

(6) An insurance purchasing outlet shall be required to accept a voucher as payment for

a health benefit plan, or as partial payment if the value of the voucher is insufficient

to cover the full premium of the health benefit plan.

(7) An insurance purchasing outlet may charge a reasonable administrative fee to cover

the cost of processing the voucher.

(8) The commissioner shall promulgate administrative regulations to implement the

provisions of this section.