§ 5003 — Electronic delivery of insurance notices or documents

(a) Transactions.--Subject to the requirements of this section, an insurer may deliver by electronic means a notice to a covered person or any document required by Federal or State law in a transaction with the insurer or deliver in a manner that serves as evidence of insurance coverage in accordance with the act of December 16, 1999 (P.L.971, No.69), known as the Electronic Transactions Act.

(b) Effect of delivery.--The delivery of a notice or document in accordance with this section shall be considered the equivalent to and having the same effect as a delivery method required by Federal or State law, including delivery by first class mail, first class mail with postage prepaid, certified mail, certificate of mail or certificate mailing.

(c) Consent from covered persons.--Notwithstanding subsection (d), an insurer may deliver by electronic means a notice or document to a covered person in accordance with this section if all of the following apply:

(1) The covered person has affirmatively consented electronically or confirmed consent electronically in a manner that reasonably demonstrates that the covered person can access information in the electronic form that will be used for a notice or document delivered by electronic means, and the covered person has not withdrawn the consent.

(2) Before the covered person gives the consent required under paragraph (1), the insurer provides the covered person with a clear and conspicuous statement informing the covered person of all of the following:

(i) The hardware and software requirements for access to and retention of a notice or document delivered by electronic means.

(ii) The types of notices and documents for which the covered person may consent to receive by delivery by electronic means.

(iii) The right of the covered person to withdraw consent to having a notice or document delivered by electronic means at any time and the conditions or consequences imposed in the event consent is withdrawn.

(iv) The procedures necessary for the covered person to withdraw consent to having a notice or document delivered by electronic means, which shall be no more burdensome than the procedures required to provide consent under paragraph (1), and the manner in which the covered person can update the covered person's email address for the purposes of this subsection.

(v) The right of a covered person to have a notice or document delivered by the insurer upon request in paper form.

(vi) The right of a covered person to request that personal health information be treated and communicated confidentially and the process by which a covered person may receive confidential communication of personal health information delivered by electronic means.

(d) Consent from plan sponsors.--A plan sponsor may, on behalf of each covered person, provide consent to the delivery by electronic means of communications related to the plan from an insurer.

(e) Duties of plan sponsors.--Before consenting on behalf of a covered person under subsection (d), a plan sponsor shall have the following duties:

(1) To the extent applicable, confirm that the covered person routinely uses electronic communications and is able to access and retain electronic communications that may be delivered by an insurer to an email address used by the covered person.

(2) Inform the covered person no less than 30 days prior that consent will be provided as authorized under subsection (d) and a notice or document related to the health benefit plan may be delivered by electronic means unless the covered person affirmatively opts out of delivery by electronic means prior to the expiration of the 30-day period.

(f) Duties of insurers for health benefit plans.--At least 30 days before providing delivery by electronic means of a notice or document related to a health benefit plan, an insurer for the plan shall have the following duties:

(1) Verify that the plan sponsor has met its duties under subsection (e).

(2) Provide a clear and conspicuous statement informing a covered person enrolled in the plan of all of the following:

(i) The types of notices and documents that may be delivered by electronic means to the covered person.

(ii) The right of the covered person to opt out of having a notice or document delivered by electronic means at any time without charge.

(iii) The procedures necessary for the covered person to opt out of having a notice or document delivered by electronic means and the manner in which the covered person can update the covered person's email address for the purposes of this subsection.

(iv) The right of the covered person to have a notice or document delivered by the insurer upon request in paper form without charge.

(v) The right of a covered person to request that personal health information be treated and communicated confidentially and the process by which a covered person may receive the confidential communication of personal health information delivered by electronic means.

(3) Provide an opportunity for a covered person enrolled in the plan to opt out of delivery by electronic means.

(4) Comply with the applicable provisions of this chapter, the Electronic Transactions Act, 45 CFR 164.530(c) (relating to administrative requirements) and other applicable provisions of Federal law regarding technical safeguards such as encryption.

Legislative History

Cross References.Section 5003 is referred to in sections 5004, 5007 of this title.