Kansas 2025-2026 Regular Session

Kansas Senate Bill SB257 Compare Versions

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11 Session of 2025
22 SENATE BILL No. 257
33 By Committee on Ways and Means
44 2-10
55 AN ACT concerning health and healthcare; relating to health insurance
66 coverage; expanding medical assistance eligibility; enacting the
77 healthcare access for working Kansans (HAWK) act; directing the
88 department of health and environment to study certain medicaid
99 expansion topics; adding meeting days to the Robert G. (Bob) Bethell
1010 joint committee on home and community based services and KanCare
1111 oversight to monitor implementation of expanded medical assistance
1212 eligibility; amending K.S.A. 39-7,160 and 40-3213 and repealing the
1313 existing sections.
1414 Be it enacted by the Legislature of the State of Kansas:
1515 New Section 1. (a) Sections 1 through 11, and amendments thereto,
1616 shall be known and may be cited as the healthcare access for working
1717 Kansans (HAWK) act.
1818 (b) The legislature expressly consents to expand eligibility for receipt
1919 of benefits under the Kansas program of medical assistance, as required by
2020 K.S.A. 39-709(e)(2), and amendments thereto, by the passage and
2121 enactment of the act, subject to all requirements and limitations established
2222 in the act.
2323 (c) The secretary of health and environment shall adopt rules and
2424 regulations as necessary to implement and administer the act.
2525 (d) As used in sections 1 through 11, and amendments thereto, unless
2626 otherwise specified:
2727 (1) "138% of the federal poverty level," or words of like effect,
2828 includes a 5% income disregard permitted under the federal patient
2929 protection and affordable care act.
3030 (2) "Act" means the healthcare access for working Kansans (HAWK)
3131 act.
3232 New Sec. 2. (a) The secretary of health and environment shall submit
3333 to the United States centers for medicare and medicaid services any state
3434 plan amendment, waiver request or other approval request necessary to
3535 implement the act. At least 10 calendar days prior to submission of any
3636 such approval request to the United States centers for medicare and
3737 medicaid services, the secretary of health and environment shall submit
3838 such approval request application to the state finance council.
3939 (b) For purposes of eligibility determinations under the Kansas
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7676 program of medical assistance on and after January 1, 2026, medical
7777 assistance shall be granted to any adult under 65 years of age who is not
7878 pregnant and whose income meets the limitation established in subsection
7979 (c), as permitted under the provisions of 42 U.S.C. § 1396a, as it exists on
8080 the effective date of the act, and subject to a 90% federal medical
8181 assistance percentage and all requirements and limitations established in
8282 the act.
8383 (c) The secretary of health and environment shall submit to the
8484 United States centers for medicare and medicaid services any approval
8585 request necessary to provide medical assistance eligibility to individuals
8686 described in subsection (b) whose modified adjusted gross income does
8787 not exceed 138% of the federal poverty level.
8888 New Sec. 3. (a) The secretary of health and environment shall require
8989 each applicant for coverage under the act to provide employment
9090 verification at the time of initial application or renewal application. Such
9191 verification shall be a prerequisite for coverage under the act.
9292 (b) "Employment verification" means documentation demonstrating
9393 employment during the preceding 12 months that meets the eligibility
9494 requirements of the act. "Employment verification" includes, but is not
9595 limited to:
9696 (1) Federal form W-2 wage and tax statement;
9797 (2) a pay stub demonstrating gross income;
9898 (3) employment records;
9999 (4) federal form 1099 demonstrating payments for contract labor;
100100 (5) compliance with the requirements of K.S.A. 39-709(b), and
101101 amendments thereto; and
102102 (6) any other documentation as determined by the secretary of health
103103 and environment.
104104 (c) The following individuals shall be exempt from the requirements
105105 of this subsection:
106106 (1) A full-time student enrolled in a postsecondary educational
107107 institution or technical college, as defined by K.S.A. 74-3201b, and
108108 amendments thereto, for each year the student is enrolled in such
109109 educational setting;
110110 (2) a parent or guardian of a dependent child under 18 years of age or
111111 a parent or guardian of an incapacitated adult;
112112 (3) an individual who is mentally or physically unfit for employment,
113113 as defined by the secretary of health and environment, or has a pending
114114 application for supplemental security income or social security disability
115115 insurance;
116116 (4) an individual who has a permanent partial disability, as such term
117117 is used in K.S.A. 44-510e, and amendments thereto;
118118 (5) an individual who is engaged in volunteer work for at least 20
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162162 hours per week at a nonprofit organization, as such term is defined in
163163 K.S.A. 17-1779, and amendments thereto;
164164 (6) an individual experiencing homelessness, as such term is defined
165165 in 42 U.S.C. § 11302, as in effect on the effective date of this act;
166166 (7) an individual who served in the active military, naval, air or space
167167 service and was discharged or released from such military service under
168168 conditions other than dishonorable;
169169 (8) an individual who is not more than 22 years of age and in the
170170 custody of the secretary of children and families on the date that the
171171 individual reached 18 years of age; and
172172 (9) any individual who the secretary determines is experiencing
173173 hardship.
174174 New Sec. 4. (a) Except to the extent prohibited by 42 U.S.C. §
175175 1396u-2(a)(2), as it exists on the effective date of this act, the secretary of
176176 health and environment shall administer medical assistance benefits using
177177 a managed care delivery system using organizations subject to assessment
178178 of the privilege fee under K.S.A. 40-3213, and amendments thereto. If the
179179 United States centers for medicare and medicaid services determines that
180180 the assessment of a privilege fee provided in K.S.A. 40-3213, and
181181 amendments thereto, is unlawful or otherwise invalid, then the secretary of
182182 health and environment shall administer state medicaid services using a
183183 managed care delivery system.
184184 (b) In awarding a contract for an entity to administer state medicaid
185185 services using a managed care delivery system, the secretary of health and
186186 environment shall:
187187 (1) Not provide favorable or unfavorable treatment in awarding a
188188 contract based on an entity's for-profit or not-for-profit tax status;
189189 (2) give preference in awarding a contract to an entity that provides
190190 health insurance coverage plans on the health benefit exchange in Kansas
191191 established under the federal patient protection and affordable care act; and
192192 (3) require that any entity administering state medicaid services
193193 provide tiered benefit plans with enhanced benefits for covered individuals
194194 who demonstrate healthy behaviors, as determined by the secretary of
195195 health and environment, to be implemented on or before July 1, 2027.
196196 New Sec. 5. If the federal medical assistance percentage for coverage
197197 of medical assistance participants described in section 1902(a)(10)(A)(i)
198198 (VIII) of the federal social security act, 42 U.S.C. § 1396a, as it exists on
199199 the effective date of this act, becomes lower than 90%, then the secretary
200200 of health and environment shall terminate coverage under the act over a
201201 12-month period, beginning on the first day that the federal medical
202202 assistance percentage becomes lower than 90%. No individual shall be
203203 newly enrolled for coverage under the act after such date.
204204 New Sec. 6. (a) Section 5, and amendments thereto, shall be
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248248 nonseverable from the remainder of the act. If the provisions of section 5,
249249 and amendments thereto, are not approved by the United States centers for
250250 medicare and medicaid services, then the act shall be null and void and
251251 shall have no force and effect.
252252 (b) A denial of federal approval or federal financial participation that
253253 applies to any provision of the act not enumerated in subsection (a) shall
254254 not prohibit the secretary of health and environment from implementing
255255 any other provision of the act.
256256 New Sec. 7. (a) On or before January 10, 2027, and on or before the
257257 first day of the regular session of the legislature each year thereafter, the
258258 secretary of health and environment shall prepare and deliver a report to
259259 the legislature that summarizes the cost savings achieved by the state from
260260 the movement of covered individuals from the KanCare program to
261261 coverage under the act, including, but not limited to, the MediKan
262262 program, the medically needy spend-down program and the breast and
263263 cervical cancer program.
264264 (b) State cost savings shall be determined by calculating the cost of
265265 providing services to covered individuals in the KanCare program less the
266266 cost of services provided to covered individuals under the act.
267267 (c) If the secretary of health and environment implements other
268268 initiatives using cost savings achieved through the implementation of the
269269 act, the secretary shall include such initiatives as part of the report required
270270 in subsection (a).
271271 New Sec. 8. (a) The secretary of corrections and the secretary of
272272 health and environment shall coordinate with a county sheriff or such
273273 sheriff's deputy who requests assistance in facilitating medicaid coverage
274274 for any individual committed to a county jail or correctional facility during
275275 any time period that such individual is eligible for coverage under state or
276276 federal law.
277277 (b) If an individual is enrolled in medicaid when such individual is
278278 committed to a county jail or correctional facility, such medicaid status
279279 shall not be suspended or terminated based on such individual's
280280 incarceration for a minimum of 30 days. After 30 days, medicaid coverage
281281 may be suspended, but not terminated, up to the maximum amount of time
282282 permitted by state and federal law.
283283 (c) The secretary of health and environment shall coordinate with a
284284 county sheriff or such sheriff's deputy and the department of corrections to
285285 assist any individual who is committed to a county jail or correctional
286286 facility in applying for medicaid coverage prior to such individual's release
287287 from custody if such individual is likely to meet the requirements for
288288 medicaid coverage to allow adequate time for medicaid coverage to begin
289289 promptly upon release.
290290 (d) The secretary of health and environment shall adopt any rules and
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334334 regulations and supporting policies and procedures as necessary to
335335 implement and administer this section prior to January 1, 2026.
336336 New Sec. 9. On or before February 15, 2027, and on or before
337337 February 15 of each year thereafter, the secretary of health and
338338 environment shall present a report to the house of representatives standing
339339 committee on appropriations and the senate standing committee on ways
340340 and means that summarizes the costs of the act and the cost savings and
341341 additional revenues generated during the preceding fiscal year.
342342 New Sec. 10. (a) There is hereby established the rural health advisory
343343 committee.
344344 (b) The rural health advisory committee shall consist of 15 members
345345 appointed by the governor. The membership shall be comprised of
346346 individuals with a variety of backgrounds including medicine, education,
347347 farming, finance, business and individuals representing community
348348 interests in rural Kansas.
349349 (c) The governor shall designate one of the appointed members to be
350350 chairperson of the committee. The members of the advisory committee
351351 shall select a vice chairperson from the membership of the advisory
352352 committee.
353353 (d) Upon first appointment, five of the members shall serve for a term
354354 of one year, five of the members shall be appointed for a term of two years
355355 and five of the members shall be appointed for term of three years, as
356356 designated by the governor. The member designated as chairperson shall
357357 serve for a term of three years. Subsequent appointees shall serve terms of
358358 three years.
359359 (e) (1) The advisory committee may meet at any time and at any
360360 place within the state on the call of the chairperson. The advisory
361361 committee shall meet regularly, but shall meet at least once every calendar
362362 quarter.
363363 (2) A quorum of the advisory committee shall be eight voting
364364 members. All actions of the advisory committee shall be adopted by a
365365 majority of those voting members present when there is a quorum.
366366 (f) The advisory committee shall:
367367 (1) Advise the governor and other state agencies on rural health
368368 issues;
369369 (2) recommend and evaluate mechanisms to encourage greater
370370 cooperation between rural communities and rural health providers;
371371 (3) recommend and evaluate approaches to rural health issues that are
372372 sensitive to the needs of local communities;
373373 (4) develop methods to identify individuals who are underserved by
374374 the Kansas rural healthcare system; and
375375 (5) beginning in 2026, provide an annual report to the governor
376376 containing the advice, recommendations and conclusions of the advisory
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420420 committee.
421421 (g) The secretary of health and environment shall facilitate the work
422422 of the committee by providing access to meeting space and other necessary
423423 staff and office support. The secretary of health and environment may
424424 adopt any rules and regulations and supporting policies and procedures
425425 that are necessary to support the work of the advisory committee.
426426 New Sec. 11. The healthcare access for working Kansans (HAWK)
427427 act shall not provide coverage for abortion services, except in cases where
428428 coverage is mandated by federal law and federal financial participation is
429429 available.
430430 Sec. 12. K.S.A. 39-7,160 is hereby amended to read as follows: 39-
431431 7,160. (a) There is hereby established the Robert G. (Bob) Bethell joint
432432 committee on home and community based services and KanCare
433433 oversight. The joint committee shall review the number of individuals who
434434 are transferred from state or private institutions and long-term care
435435 facilities to the home and community based services and the associated
436436 cost savings and other outcomes of the money-follows-the-person
437437 program. The joint committee shall review the funding targets
438438 recommended by the interim report submitted for the 2007 legislature by
439439 the joint committee on legislative budget and use them as guidelines for
440440 future funding planning and policy making. The joint committee shall have
441441 oversight of savings resulting from the transfer of individuals from state or
442442 private institutions to home and community based services. As used in
443443 K.S.A. 39-7,159 through 39-7,162, and amendments thereto, "savings"
444444 means the difference between the average cost of providing services for
445445 individuals in an institutional setting and the cost of providing services in a
446446 home and community based setting. The joint committee shall study and
447447 determine the effectiveness of the program and cost-analysis of the state
448448 institutions or long-term care facilities based on the success of the transfer
449449 of individuals to home and community based services. The joint
450450 committee shall consider the issues of whether sufficient funding is
451451 provided for enhancement of wages and benefits of direct individual care
452452 workers and their staff training and whether adequate progress is being
453453 made to transfer individuals from the institutions and to move them from
454454 the waiver waiting lists to receive home and community based services.
455455 The joint committee shall review and ensure that any proceeds resulting
456456 from the successful transfer be applied to the system of provision of
457457 services for long-term care and home and community based services. The
458458 joint committee shall monitor and study the implementation and operations
459459 of the home and community based service programs, the children's health
460460 insurance program, the program for the all-inclusive care of the elderly
461461 and the state medicaid programs including, but not limited to, access to
462462 and quality of services provided and any financial information and
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506506 budgetary issues. Any state agency shall provide data and information on
507507 KanCare programs, including, but not limited to, pay for performance
508508 measures, quality measures and enrollment and disenrollment in specific
509509 plans, KanCare provider network data and appeals and grievances made to
510510 the KanCare ombudsman, to the joint committee, as requested.
511511 (b) The joint committee shall consist of 11 members of the legislature
512512 appointed as follows: (1) Two members of the house committee on health
513513 and human services appointed by the speaker of the house of
514514 representatives; (2) one member of the house committee on health and
515515 human services appointed by the minority leader of the house of
516516 representatives; (3) two members of the senate committee on public health
517517 and welfare appointed by the president of the senate; (4) one member of
518518 the senate committee on public health and welfare appointed by the
519519 minority leader of the senate; (5) two members of the house of
520520 representatives appointed by the speaker of the house of representatives,
521521 one of whom shall be a member of the house committee on appropriations;
522522 (6) one member of the house of representatives appointed by the minority
523523 leader of the house of representatives; and (7) two members of the senate
524524 appointed by the president of the senate, one of whom shall be a member
525525 of the senate committee on ways and means.
526526 (c) Members shall be appointed for terms coinciding with the
527527 legislative terms for which such members are elected or appointed. All
528528 members appointed to fill vacancies in the membership of the joint
529529 committee and all members appointed to succeed members appointed to
530530 membership on the joint committee shall be appointed in the manner
531531 provided for the original appointment of the member succeeded.
532532 (d) (1) The members originally appointed as members of the joint
533533 committee shall meet upon the call of the member appointed by the
534534 speaker of the house of representatives, who shall be the first chairperson,
535535 within 30 days of the effective date of this act. The vice-chairperson of the
536536 joint committee shall be appointed by the president of the senate.
537537 Chairperson and vice-chairperson shall alternate annually between the
538538 members appointed by the speaker of the house of representatives and the
539539 president of the senate. The ranking minority member shall be from the
540540 same chamber as the chairperson. On and after the effective date of this act
541541 Except as provided in paragraph (2), the joint committee shall meet at
542542 least once in January and once in April when the legislature is in regular
543543 session and at least once for two consecutive days during each of the third
544544 and fourth calendar quarters, on the call of the chairperson, but not to
545545 exceed six meetings in a calendar year, except additional meetings may be
546546 held on call of the chairperson when urgent circumstances exist which
547547 require such meetings. Six members of the joint committee shall constitute
548548 a quorum.
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592592 (2) During calendar year 2026 and calendar year 2027, the joint
593593 committee shall meet for one additional day per meeting pursuant to
594594 paragraph (1) in order to monitor the implementation of the healthcare
595595 access for working Kansans act and to review the following topics relating
596596 to such implementation:
597597 (A) Payment integrity and eligibility audits;
598598 (B) outcomes related to section 3, and amendments thereto;
599599 (C) health outcomes for individuals covered under the act;
600600 (D) budget projections and actual expenditures related to
601601 implementation of the act; and
602602 (E) expenses incurred by hospitals arising from charity care and
603603 services provided to patients who are unwilling or unable to pay for such
604604 services.
605605 (e) (1) At the beginning of each regular session of the legislature, the
606606 committee shall submit to the president of the senate, the speaker of the
607607 house of representatives, the house committee on health and human
608608 services and the senate committee on public health and welfare a written
609609 report on numbers of individuals transferred from the state or private
610610 institutions to the home and community based services including the
611611 average daily census in the state institutions and long-term care facilities,
612612 savings resulting from the transfer certified by the secretary for aging and
613613 disability services in a quarterly report filed in accordance with K.S.A. 39-
614614 7,162, and amendments thereto, and the current balance in the home and
615615 community based services savings fund of the Kansas department for
616616 aging and disability services.
617617 (2) Such report submitted under this subsection shall also include, but
618618 not be limited to, the following information on the KanCare program:
619619 (A) Quality of care and health outcomes of individuals receiving state
620620 medicaid services under the KanCare program, as compared to the
621621 provision of state medicaid services prior to January 1, 2013;
622622 (B) integration and coordination of health care healthcare procedures
623623 for individuals receiving state medicaid services under the KanCare
624624 program;
625625 (C) availability of information to the public about the provision of
626626 state medicaid services under the KanCare program, including, but not
627627 limited to, accessibility to health services, expenditures for health services,
628628 extent of consumer satisfaction with health services provided and
629629 grievance procedures, including quantitative case data and summaries of
630630 case resolution by the KanCare ombudsman;
631631 (D) provisions for community outreach and efforts to promote the
632632 public understanding of the KanCare program;
633633 (E) comparison of the actual medicaid costs expended in providing
634634 state medicaid services under the KanCare program after January 1, 2013,
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678678 to the actual costs expended under the provision of state medicaid services
679679 prior to January 1, 2013, including the manner in which such cost
680680 expenditures are calculated;
681681 (F) comparison of the estimated costs expended in a managed care
682682 system of providing state medicaid services under the KanCare program
683683 after January 1, 2013, to the actual costs expended under the KanCare
684684 program of providing state medicaid services after January 1, 2013;
685685 (G) comparison of caseload information for individuals receiving
686686 state medicaid services prior to January 1, 2013, to the caseload
687687 information for individuals receiving state medicaid services under the
688688 KanCare program after January 1, 2013; and
689689 (H) all written testimony provided to the joint committee regarding
690690 the impact of the provision of state medicaid services under the KanCare
691691 program upon residents of adult care homes.
692692 (3) The joint committee shall consider the external quality review
693693 reports and quality assessment and performance improvement program
694694 plans of each managed care organization providing state medicaid services
695695 under the KanCare program in the development of the report submitted
696696 under this subsection.
697697 (4) The report submitted under this subsection shall be published on
698698 the official website of the legislative research department.
699699 (f) Members of the committee shall have access to any medical
700700 assistance report and caseload data generated by the Kansas department of
701701 health and environment division of health care finance. Members of the
702702 committee shall have access to any report submitted by the Kansas
703703 department of health and environment division of health care finance to
704704 the centers for medicare and medicaid services of the United States
705705 department of health and human services.
706706 (g) Members of the committee shall be paid compensation, travel
707707 expenses and subsistence expenses or allowance as provided in K.S.A. 75-
708708 3212, and amendments thereto, for attendance at any meeting of the joint
709709 committee or any subcommittee meeting authorized by the committee.
710710 (h) In accordance with K.S.A. 46-1204, and amendments thereto, the
711711 legislative coordinating council may provide for such professional services
712712 as may be requested by the joint committee.
713713 (i) The joint committee may make recommendations and introduce
714714 legislation as it deems necessary in performing its functions.
715715 Sec. 13. K.S.A. 40-3213 is hereby amended to read as follows: 40-
716716 3213. (a) Every health maintenance organization and medicare provider
717717 organization subject to this act shall pay to the commissioner the following
718718 fees:
719719 (1) For filing an application for a certificate of authority, $150;
720720 (2) for filing each annual report, $50; and
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764764 (3) for filing an amendment to the certificate of authority, $10.
765765 (b) Every health maintenance organization subject to this act shall
766766 pay annually to the commissioner at the time such organization files its
767767 annual report, a privilege fee in an amount equal to the following
768768 percentages 5.77% of the total of all premiums, subscription charges or
769769 any other term that may be used to describe the charges made by such
770770 organization to enrollees: 3.31% during the reporting period beginning
771771 January 1, 2015, and ending December 31, 2017; and 5.77% on and after
772772 January 1, 2018. In such computations all such organizations shall be
773773 entitled to deduct therefrom any premiums or subscription charges
774774 returned on account of cancellations and dividends returned to enrollees. If
775775 the commissioner shall determine at any time that the application of the
776776 privilege fee, or a change in the rate of the privilege fee, would cause a
777777 denial of, reduction in or elimination of federal financial assistance to the
778778 state or to any health maintenance organization subject to this act, the
779779 commissioner is hereby authorized to terminate the operation of such
780780 privilege fee or the change in such privilege fee.
781781 (c) For the purpose of insuring the collection of the privilege fee
782782 provided for by subsection (b), every health maintenance organization
783783 subject to this act and required by subsection (b) to pay such privilege fee
784784 shall at the time it files its annual report, as required by K.S.A. 40-3220,
785785 and amendments thereto, make a return, generated by or at the direction of
786786 its chief officer or principal managing director, under penalty of K.S.A.
787787 21-5824, and amendments thereto, to the commissioner, stating the amount
788788 of all premiums, assessments and charges received by the health
789789 maintenance organization, whether in cash or notes, during the year ending
790790 on the last day of the preceding calendar year. Upon the receipt of such
791791 returns the commissioner of insurance shall verify such returns and
792792 reconcile the fees pursuant to subsection (f) upon such organization on the
793793 basis and at the rate provided in this section.
794794 (d) Premiums or other charges received by an insurance company
795795 from the operation of a health maintenance organization subject to this act
796796 shall not be subject to any fee or tax imposed under the provisions of
797797 K.S.A. 40-252, and amendments thereto.
798798 (e) Fees charged under this section shall be remitted to the state
799799 treasurer in accordance with the provisions of K.S.A. 75-4215, and
800800 amendments thereto. Upon receipt of each such remittance, the state
801801 treasurer shall deposit the entire amount in the state treasury to the credit
802802 of the medical assistance fee fund created by K.S.A. 40-3236, and
803803 amendments thereto.
804804 (f) (1) On and after January 1, 2018, In addition to any other filing or
805805 return required by this section, each health maintenance organization shall
806806 submit a report to the commissioner on or before March 31 and September
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850850 30 of each year containing an estimate of the total amount of all premiums,
851851 subscription charges or any other term that may be used to describe the
852852 charges made by such organization to enrollees that the organization
853853 expects to collect during the current calendar year. Upon filing each March
854854 31 report, the organization shall submit payment equal to ½ of the
855855 privilege fee that would be assessed by the commissioner for the current
856856 calendar year based upon the organization's reported estimate. Upon filing
857857 each September 30 report, the organization shall submit payment equal to
858858 the balance of the privilege fee that would be assessed by the
859859 commissioner for the current calendar year based upon the organization's
860860 reported estimates.
861861 (2) Any amount of privilege fees actually owed by a health
862862 maintenance organization during any calendar year in excess of estimated
863863 privilege fees paid shall be assessed by the commissioner and shall be due
864864 and payable upon issuance of such assessment.
865865 (3) Any amount of estimated privilege fees paid by a health
866866 maintenance organization during any calendar year in excess of privilege
867867 fees actually owed shall be reconciled when the commissioner assesses
868868 privilege fees in the ensuing calendar year. The commissioner shall credit
869869 such excess amount against future privilege fee assessments. Any such
870870 excess amount paid by a health maintenance organization that is no longer
871871 doing business in Kansas and that no longer has a duty to pay the privilege
872872 fee shall be refunded by the commissioner from funds appropriated by the
873873 legislature for such purpose.
874874 Sec. 14. K.S.A. 39-7,160 and 40-3213 are hereby repealed.
875875 Sec. 15. This act shall take effect and be in force from and after its
876876 publication in the Kansas register.
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