Hearing on SB 528 was opened by Chairperson Dietrich. Revisor Eileen Ma provided an overview of the bill. (Attachment 1)

Brian Rose on behalf of ESSDECK spoke as a proponent of the bill. (Attachment 2) He represents a municipal health insurance pool of 42 school districts. These pools, as they have grown in size, have grown in complexity and Kansas law must also evolve to ensure they remain financially sound and sustainable. The bill replaces the 70% reserve requirement for these self-funded plans and lowers it to a claim-based standard of 20%. Doing so will free up taxpayer dollars and allow pools to lower future premiums. Mr. Rose stood for questions.

Ian Still of Benefitbay spoke against the bill via WebEx. (Attachment 3) He argued that Individual Coverage Health Reimbursement Arrangements  (ICHRAs) offer a better solution to employers. It removes the confusion and risks associated with self-funded pools. Mr. Still stood for questions.

Eric Turek of the Kansas Department of Insurance testified as a neutral to the bill. (Attachment 4) He provided a historical context for municipal health pools in Kansas. He stated that they typically dissolve because they lack the funds to pay claims. He also clarified that the 20% reserve standard in other states applies to multiple employer welfare arrangement and not municipal pools.

Sarah Fertig of Blue Cross and Blue Shield of Kansas spoke as a neutral. (Attachment 5) She expressed grave concerns regarding the removal of the 70% reserve requirement. She mentioned the municipal collapses in the late 1990s in which municipalities often have to levy tax assessments to make up the difference. 

Mr. Turek and Ms. Fertig stood for questions from the Committee.

The Chair closed the hearing on SB 528.

Meeting adjourned at 10:26 a.m. The next meeting is scheduled for March 16, 2026 and will be a joint meeting with the House Financial Institutions and Pensions Committee.