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 C. Proffitt, Director Laura Kelly, Governor Division of the Budget March 11, 2024 The Honorable Beverly Gossage, Chairperson Senate Committee on Public Health and Welfare 300 SW 10th Avenue, Room 142-S Topeka, Kansas 66612 Dear Senator Gossage: SUBJECT: Fiscal Note for SB 518 by Senate Committee on Ways and Means In accordance with KSA 75-3715a, the following fiscal note concerning SB 518 is respectfully submitted to your committee. SB 518 would create the Complex Rehabilitation Technology Coverage Act. The bill would establish coverage and reimbursement requirements for complex rehabilitation therapy and wheelchair suppliers, including prior authorizations. The Insurance Department would be required to appoint a task force to determine an appropriate rate of reimbursement. The members would receive subsistence, mileage, and other expenses incurred to perform their duties, but members that are employed by a state agency would be reimbursed by their agency. The bill would become effective January 1, 2025. The Department of Administration states that the bill is not specific on which pieces of Medicare-classified durable medical equipment would be considered complex rehabilitation technology. Because there is not enough information to determine what would be covered under the bill, the agency cannot estimate a fiscal effect. The Insurance Department indicates that any additional expenditures to appoint a task force to determine an appropriate rate of reimbursement, as required by the bill, would be absorbed within existing resources. The Kansas Department of Health and Environment states that the bill could have an effect on the Kansas Medicaid program because complex rehabilitation therapy is currently a covered service and is paid through the durable medical equipment program. However, a fiscal effect cannot be determined because it is unknown how many services would no longer have a prior authorization process. The Honorable Beverly Gossage, Chairperson Page 2—SB 518 The State Board of Healing Arts, the Board of Technical Professions, the Department for Aging and Disability Services, and the Board of Nursing all state that enactment of the bill would not have a fiscal effect. Any fiscal effect associated with SB 518 is not reflected in The FY 2025 Governor’s Budget Report. Sincerely, Adam C. Proffitt Director of the Budget cc: Bobbi Mariani, Insurance Department Tamara Emery, Department of Administration Leigh Keck, Department for Aging & Disability Services Amy Penrod, Department of Health & Environment Larry Karns, Board of Technical Professions Susan Gile, Board of Healing Arts Jill Simons, Board of Nursing