SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2094
As Recommended by House Committee on
Insurance
Brief*
HB 2094 would amend law relating to the financial
documentation demonstrating fiscal soundness that must be
submitted by a health maintenance organization (HMO) or a
Medicare provider organization (MPO) when applying for a
certificate of authority to provide health care in the state.
The bill would amend requirements pertaining to
statements of fiscal soundness to:
●Require financial projections for a minimum of
three years from the date of application [Note:
Current law requires the projections for a minimum
of three years from the anticipated date of
certification and on a monthly basis from the date
of certification through one year.];
●Limit the projections for each deficit year and for
one year thereafter required when a HMO or MPO
expects to incur a deficit to a maximum of five
years;
●Eliminate the requirement for monthly statements
of revenue and expense for the first year on a
gross dollar and a per-member-per-month basis;
and
●Change the required balance sheet for all financial
projections from quarterly to yearly.
The bill would also make technical amendments.
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*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org Background
The bill was introduced by the House Committee on
Insurance at the request of the Kansas Insurance Department
(Department). [Note: A companion bill, SB 26, has been
introduced in the Senate.]
House Committee on Insurance
In the House Committee hearing, a representative of the
Department provided proponent testimony, stating the bill
would clarify the financial projection requirements when
applying for a certificate of authority by changing from various
monthly and quarterly statements to annual statements. The
representative stated the change would create a more
streamlined and less burdensome approach when transacting
business in Kansas.
No other testimony was provided.
Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, the Department, the League of Kansas
Municipalities, and the Kansas Association of Counties state
enactment of the bill would have no fiscal effect.
Insurance; health maintenance organizations; medicare provider organizations;
certificates of authority
2- 2094