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 19, 2025
The Honorable Larry Alley, Chairperson
Senate Committee on Commerce
300 SW 10th Avenue, Room 159-S
Topeka, Kansas 66612
Dear Senator Alley:
SUBJECT: Fiscal Note for SB 189 by Senator Sykes, et al.
In accordance with KSA 75-3715a, the following fiscal note concerning SB 189 is
respectfully submitted to your committee.
SB 189 would require an employer to pay for the services of a healthcare provider
designated by an injured employee for workers compensation claims. The bill would remove
provisions in current statute that allow an employer to submit alternative healthcare provider
names to the injured employee if the healthcare rendered by an initial provider is not satisfactory.
The bill would also remove provisions that allow an employee to consult a healthcare provider of
the employee’s choice and have the employer pay for such healthcare up to $800.
Estimated State Fiscal Effect
FY 2025 FY 2026 FY 2027
Expenditures
State General Fund -- -- --
Fee Fund(s) -- $1,599,356 $1,667,381
Federal Fund -- -- --
Total Expenditures -- $1,599,356 $1,667,381
Revenues
State General Fund -- -- --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- -- --
FTE Positions -- -- -- The Honorable Larry Alley, Chairperson
Page 2—SB 189
The Division of the State Employee Health Benefits Program in the Department of
Administration indicates enactment of the bill would require $1,599,356 in FY 2026 and
$1,667,381 in FY 2027 from the State Self Insurance Fund. Revenue in this fund comes from
payroll premiums from state employees and is considered off-budget. The Department states that
the estimated savings by requiring employees to see in-network healthcare providers totaled
$1,236,818.53 in 2024, which it assumes will be the baseline amount for FY 2026. Assuming a
5.50 percent increase in costs, the agency estimates medical costs to total $1,304,843.55 in FY
2027. In addition, the Department estimates 194 independent medical examinations would be
conducted in FY 2026 and FY 2027 at a cost of $1,868.68 per exam for a total of $362,537.50 in
additional costs in FY 2026 and FY 2027. As a result, the bill would increase expenditures to the
Department by $1,599,356.03 in FY 2026 ($1,236,818.53 lost network savings + $362,537.50
independent medical evaluations) and $1,667,381.05 in FY 2027 ($1,304,843.55 + $362,537.50).
The Insurance Department indicates enactment of the bill would not have a fiscal effect on
the agency. Any fiscal effect associated with SB 189 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
Dawn Palmberg, Department of Labor