SESSION OF 2023
SUPPLEMENTAL NOTE ON SENATE BILL NO. 26
As Amended by House Committee on Insurance
Brief*
SB 26, as amended, 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.
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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 The bill would also make technical amendments.
The bill would be in effect upon publication in the
Kansas Register.
Background
The bill was introduced by the Senate Committee on
Financial Institutions and Insurance at the request of the
Kansas Insurance Department (Department). [Note: A
companion bill, HB 2094, has been introduced in the House.]
Senate Committee on Financial Institutions and
Insurance
In the Senate 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.
House Committee on Insurance
In the House Committee hearing, an overview of the bill
was provided and proponent testimony submitted by the
Department was made available.
The House Committee amended the bill to change its
effective date to be upon publication in the Kansas Register.
2- 26 Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on the bill, as introduced, 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
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