Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor
Division of the Budget
January 19, 2023
The Honorable Jeff Longbine, Chairperson
Senate Committee on Financial Institutions and Insurance
300 SW 10th Avenue, Room 546-S
Topeka, Kansas 66612
Dear Senator Longbine:
SUBJECT: Fiscal Note for SB 26 by Senate Committee on Financial Institutions and
Insurance
In accordance with KSA 75-3715a, the following fiscal note concerning SB 26 is
respectfully submitted to your committee.
Under current law, a health maintenance organization or Medicare provider organization,
in order to obtain a certificate of authority from the Kansas Insurance Commissioner, must provide
monthly financial projections from the anticipated date of certificate for the first year and quarterly
statements for the subsequent two years. SB 26 would only require financial projections on a
yearly basis from the date of application for all three years. The bill would also require that if a
health maintenance organization or Medicare provider organization is expected to incur a deficit,
financial projections for each deficit year would be sent to the Commissioner for up to five years.
The Kansas Insurance Department, the League of Kansas Municipalities, and the Kansas
Association of Counites all state that the bill would not have a fiscal effect to its operations.
Sincerely,
Adam Proffitt
Director of the Budget
cc: Bobbi Mariani, Insurance Department
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties