Discontinuing payments to certain group-funded insurance pools, refunding existing balances thereof and abolishing such funds and establishing the group-funded pools refund fund; adjusting the basis upon which certain premium tax calculations are made, requiring such premium taxes to be paid 90 days after each calendar year and basing such premium taxes upon the gross premiums collected for the previous calendar year; and adding fire districts to the definition of "municipality" for purposes of the the payment of COBRA premiums under certain circumstances.
Impact
A significant aspect of the bill is its modification of how premium taxes are calculated and paid. HB2093 requires that premium taxes be paid within 90 days after each calendar year, based on the gross premiums collected the previous year. Additionally, the bill extends the definition of 'municipalities' to include fire districts regarding the payment of COBRA premiums, thereby enhancing the coverage available to the surviving spouses and dependents of firefighters who have died in the line of duty. The changes could significantly affect municipalities in Kansas, particularly those managing fire departments and those involved with group-funded insurance pools.
Summary
House Bill 2093 addresses several important aspects concerning group-funded insurance pools and municipal insurance coverage in Kansas. The bill proposes to discontinue payments to certain group-funded insurance pools and fee funds, establishing a new group-funded pools refund fund to refund entities that have previously paid into these funds. This change aims to streamline the finances related to these pools and ensure that moneys can be efficiently managed and refunded to eligible entities based on their premium taxes paid during the fiscal year 2022.
Sentiment
The sentiment towards HB2093 has generally been positive, particularly among legislators and stakeholders who recognize the need for more efficient handling of group-funded insurance pools. There is a recognition of the challenges some municipalities have faced regarding outdated structures and funds. Supporters argue that the bill simplifies the premium tax process and ensures that municipalities can adequately support their firefighters' families without unnecessary bureaucratic entanglements. However, some concerns have been raised about the abrupt discontinuation of existing funds and the transitional processes involved.
Contention
Debates surrounding HB2093 primarily focus on the ramifications of abolishing existing fee funds and the establishment of the new refund fund. Despite the positive sentiment, some lawmakers and advocacy groups have expressed concerns that the sudden changes might disrupt financial planning for municipalities and lead to confusion. Furthermore, last-minute adjustments to the provisions relating to COBRA might create challenges for the municipalities concerning their existing commitments. Therefore, the discussion reflects a balance between needed reform in the area of municipal insurance funding and the realities of transitioning away from established systems.
Reducing insurance company premium tax rates and discontinuing remittance and crediting of a portion of the premium tax to the insurance department service regulation fund.
Relating to excluding certain premiums, revenues, and fees from the determination of certain insurers' taxable gross premiums or revenues; affecting certain taxes.
Requiring that per diem amounts, expenses and funding for examinations be reasonable and establishing a tiered fee structure for examinations of insurance companies and societies based on gross premiums.
Expands the purposes of the volunteer and exempt firefighters' benevolent association of Thornwood, New York; provides for the payment to it of certain taxes imposed upon premiums on policies of fire insurance in foreign insurance companies.
To provide for the cost share of certain insurance premiums for programs sponsored by the state's Office of Group Benefits (OR INCREASE SG EX See Note)