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
February 20, 2025
The Honorable William Sutton, Chairperson
House Committee on Insurance
300 SW 10th Avenue, Room 218-N
Topeka, Kansas 66612
Dear Representative Sutton:
SUBJECT: Fiscal Note for HB 2199 by House Committee on Insurance
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2199 is
respectfully submitted to your committee.
HB 2199 would allow the State Employee Health Care Commission to provide coverage
in the State Employee Health Plan for early egg and peanut allergen introductory dietary
supplements in plan year 2026. If the coverage is provided, the bill would require the Commission
to submit a report to the President of the Senate and the Speaker of the House of Representatives
on or before March 1, 2027, containing the following information regarding such dietary
supplements for the 2026 plan year: (1) the impact the mandated coverage has had on the state
health care benefits program, (2) data on the utilization of coverage and the costs of providing such
coverage, and (3) a recommendation whether the mandated coverage should continue or if
additional utilization and cost data is required. Following receipt of the report, the bill would allow
the Legislature to consider whether to require the coverage in any individual or group health
insurance policy, medical service plan, contract, hospital service corporation contract, hospital and
medical service corporation contract, fraternal benefit society, or health maintenance organization
that provides coverage for accident and health services on or after January 1, 2028.
Estimated State Fiscal Effect
FY 2025 FY 2026 FY 2027
Expenditures
State General Fund -- -- --
Fee Fund(s) -- $80,641 $174,991
Federal Fund -- -- --
Total Expenditures -- $80,641 $174,991
Revenues
State General Fund -- -- --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- -- --
FTE Positions -- -- -- The Honorable William Sutton, Chairperson
Page 2—HB 2199
The Division of State Employee Health Benefits Program in the Department of
Administration indicates enactment of the bill would require $80,641 in FY 2026 and $174,991 in
FY 2027 from the Health Benefits Administration Clearing Fund if the coverage is provided.
Revenue in this fund comes from premiums collected for the State Employee Health Benefits Plan.
The Department estimates that approximately 668 children would participate in the coverage.
Annual treatment costs would total approximately $239.94 and administrative costs would total
$1.50 per child ($241.44 annual cost X 668 children = $161,281.92). Because the first year of the
program would begin on January 1, 2025, six months of total estimated expenditures, or
$80,640.96, would be required for FY 2026. For FY 2027, the Department assumes prescription
costs would increase approximately 8.5 percent, making the total cost for FY 2027 $174,990.88
($161,281.92 X 1.085 = $174,990.88). The Department notes that over-the-counter dietary
supplements are not typically covered by health insurance in Kansas and only participants of the
State Employee Health Plan, including local governments participating in the Plan, would be
affected. Any fiscal effect associated with HB 2199 is not reflected in The FY 2026 Governor’s
Budget Report.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Samir Arif, Department of Administration