CHAPTER 30 SENATE BILL No. 469 An  Act concerning the state health care benefits program; concerning participation by local
governmental entities in such program; amending K.S.A. 75-6501, 75-6506 and 75-6509
and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 75-6501 is hereby amended to read as follows: 75-
6501. (a) Within the limits of appropriations made or available therefor
and subject to the provisions of appropriation acts relating thereto, the
Kansas state employees health care commission shall develop and provide
for the implementation and administration of a state health care benefits
program.

      (b) The state health care benefits program may provide benefits for
persons qualified to participate in the program for hospitalization, medical
services, surgical services, nonmedical remedial care and treatment ren-
dered in accordance with a religious method of healing and other health
services. The program may include such provisions as are established by
the Kansas state employees health care commission, including but not
limited to qualifications for benefits, services covered, schedules and
graduation of benefits, conversion privileges, deductible amounts, limi-
tations on eligibility for benefits by reason of termination of employment
or other change of status, leaves of absence, military service or other
interruptions in service and other reasonable provisions as may be estab-
lished by the commission.

      (c) The Kansas state employees health care commission shall desig-
nate by rules and regulations those persons who are qualified to partici-
pate in the state health care benefits program, including active and retired
public officers and employees and their dependents as defined by rules
and regulations of the commission. In designating persons qualified to
participate in the state health care benefits program, the commission may
establish such conditions, restrictions, limitations and exclusions as the
commission deems reasonable. Such conditions, restrictions, limitations
and exclusions shall include the conditions contained in subsection (d) of
section 2, and amendments thereto. Each person who was formerly
elected or appointed and qualified to an elective state office and who was
covered immediately preceding the date such person ceased to hold such
office by the provisions of group health insurance or a health maintenance
organization plan under the law in effect prior to August 1, 1984, or the
state health care benefits program in effect after that date, shall continue
to be qualified to participate in the state health care benefits program
and shall pay the cost of participation in the program as established and
in accordance with the procedures prescribed by the commission if such
person chooses to participate therein.

      (d) The state health care benefits program established under this act
shall be effective on and after August 1, 1984.

      Sec.  2. K.S.A. 75-6506 is hereby amended to read as follows: 75-
6506. (a) The participation of a person qualified to participate in the state
health care benefits program shall be voluntary, and the cost of the state
health care benefits program for such person shall be established by the
Kansas state employees health care commission.

      (b) Periodic deductions from state payrolls may be made in accord-
ance with procedures prescribed by the secretary of administration to
cover the costs of the state health care benefits program payable by per-
sons who are on the state payroll when authorized by such persons. Any
such periodic payroll deductions in effect on an implementation date for
biweekly payroll periods shall be collected in the manner prescribed by
the secretary of administration.

      (c) In the event that the Kansas state employees health care com-
mission designates by rules and regulations a group of persons on the
payroll of a county, township, city, special district or other local govern-
mental entity, public school district, licensed child care facility operated
by a not-for-profit corporation providing residential group foster care for
children and receiving reimbursement for all or part of such care from
the department of social and rehabilitation services, nonprofit community
mental health center, as provided in K.S.A. 19-4001 et seq. and amend-
ments thereto, nonprofit community facility for the mentally retarded, as
provided in K.S.A. 19-4001 et seq. and amendments thereto, or nonprofit
independent living agency, as defined in K.S.A. 65-5101 and amendments
thereto, as qualified to participate in the state health care benefits pro-
gram, periodic deductions from payrolls of the local governmental entity,
public school district, licensed child care facility operated by a not-for-
profit corporation providing residential group foster care for children and
receiving reimbursement for all or part of such care from the department
of social and rehabilitation services, nonprofit community mental health
center, as provided in K.S.A. 19-4001 et seq. and amendments thereto,
nonprofit community facility for the mentally retarded, as provided in
K.S.A. 19-4001 et seq. and amendments thereto, or nonprofit independ-
ent living agency, as defined in K.S.A. 65-5101 and amendments thereto,
may be made to cover the costs of the state health care benefits program
payable by such persons when authorized by such persons. All such mon-
eys deducted from payrolls shall be remitted to the Kansas state employ-
ees health care commission in accordance with the directions of the com-
mission.

      (d) On and after July 1, 2002, whenever the Kansas state employees
health care commission designates any entity listed in subsection (c) as
qualified to participate in the state health care benefits program, such
entity's participation shall be conditioned upon the following:

      (1) At least 70% of such entity's employees shall participate in the
state health care plan;

      (2) except as provided by paragraph (6) of this subsection, the rate
of the premium paid by the entity as the employer's share of the total
amount of premium paid shall be at least equal to the rate paid by the
state of Kansas for its employees;

      (3) the entity shall not create, maintain or permit any exemption from
participation in the state health care plan for such entity's employees;

      (4) the rate charged to such entity shall be sufficient to pay for any
administrative or underwriting costs incurred by the state employees
health care commission;

      (5) the rate charged to such entity shall not increase the rate of pre-
mium paid by the state of Kansas for its employees;

      (6) the entity shall elect to participate for a minimum of three con-
secutive years in the state health care benefits program; and

      (7) the commission may authorize an entity to pay less than the state
rate for the employee coverage for no more than three years and no more
than five years for dependent coverage on the condition that the entity
elects to participate for at least three consecutive years after first paying
the state rate for employee coverage.

      Sec.  3. K.S.A. 75-6509 is hereby amended to read as follows: 75-
6509. Commencing with the regular session of the legislature in 1985 and
with each regular session of the legislature thereafter, the Kansas state
employees health care commission shall submit to the president of the
senate and to the speaker of the house of representatives, on the day the
governor's budget report is submitted to the legislature, recommenda-
tions with respect to the state health care benefits program together with
estimates of the cost of the program proposed by the commission, in-
cluding a five-year projection of the cost of the program, and the esti-
mated cost of admitting each entity pursuant to subsection (c) of K.S.A.
75-6506 and amendments thereto. Together with the recommendations
submitted, the commission shall include alternatives for cost containment
and benefit coverage for qualified persons for both the proposed program
and the five-year projected program. The commission shall also submit
any recommendations for legislation with respect to the state health care
benefits program.

      Sec.  4. K.S.A. 75-6501, 75-6506 and 75-6509 are hereby repealed.

      Sec.  5. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 4, 2002.
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