Brief ⁽¹⁾

SB 668, as amended, establishes the Kansas Business Health Partnership. The bill directs the Governor to convene a cabinet level Kansas Business Health Policy Committee (the Committee) comprised of the Secretary of Commerce and Housing, the Secretary of Social and Rehabilitation Services, and the Insurance Commissioner, or their designees, one member each appointed by the President of the Senate and Speaker of the House, and one member each appointed by the Minority Leaders of the Senate and House, and three members from the private sector appointed by the Governor.

The Committee:

• Shall develop and approve requests for proposals, and select a qualified entity to serve as the Kansas Business Health Partnership (the Partnership) for the purpose of providing a mechanism for combining federal and state subsidies with contributions from employers and employees to purchase health insurance for low or modest wage employees of small employers in accordance with guidelines developed by the Committee;
• 
  
  

As amended by the Senate Committee of the Whole, the definition of "small employer" is expanded to include self-employed persons.

• Shall develop and approve subsidy eligibility criteria and subsidy schedules for low wage or modest wage employees of small employers (an employee with a child eligible for coverage under the state's children health insurance program or in the state medical assistance program automatically will be eligible for a subsidy);
• 
  
  
• Shall oversee and monitor the ongoing operation of any subsidy program and the financial accountability of all subsidy funds;
• 
  
  
• Is authorized to accept funds from the federal government, its agencies, or from any other source to be used for research studies, investigations, planning, or other purposes related to the objectives of this act; and
• 
  
  
• Is authorized to develop policies for the use of additional federal or private funds to subsidize health insurance coverage for low wage or modest wage employees of small employers.
• 
  
  
  
  

The Health Committee may create unpaid advisory committees as it deems necessary to carry out its responsibilities under the act.

The Kansas Business Health Partnership selected by the Committee must be a not-for-profit corporation, have among its directors at least one small employer and one employee. No director may have any interest in either a business that sells health insurance or which provides or delivers health care services.

The Partnership shall:

• Issue requests for proposals and selectively contract with carriers to provide health care benefits to employees of small employers and establish conditions for participation by small employers that are in conformity with state and federal law;
• 
  
  
• Issue requests for proposals and contract with a qualified vendor for administrative services;
• 
  
  
• Develop and offer to small employers two or more health benefit plans which contracts may be exempt, except for preventive and health screening services, from the various mandates imposed by law;
• 
  
  
• Each plan must be consistent with any criteria established by the Partnership;
• 
  
  
• Each plan must be offered by all participating carriers, except that no carrier will be required to offer a plan which the carrier is not authorized to offer in this state;
• 
  
  
• No health benefit plan shall be offered to a small employer unless the employer is covered through the Partnership;
• 
  
  
• Supplemental benefit plans or other benefit options shall be developed and made available so that the total benefit package available to eligible children meets federal and state children's health insurance program standards and the health insurance premium program as they are implemented by the Department of Social and Rehabilitation Services;
• 
  
  
• Enroll employers and their eligible employees and dependents in health benefit plans, bill for and collect premiums from small employers--including any share of the premium paid by the enrolled employee, and remit premiums collected to the appropriate contracting carriers;
• 
  
  
• In consultation with the Health Committee, develop premium rating policies for small employers health benefit plans that may vary with respect to subsidy status of employees;
• 
  
  
• Contract for additional group vision, dental, and life insurance plans or other limited insurance products;
• 
  
  
• Take action as necessary to assure that any adult or child who receives health benefit coverage through the Partnership and who is eligible for the state medical assistance program shall remain eligible to participate in the state health insurance premium payment program; and
• 
  
  
• Coordinate with the Department of Social and Rehabilitation Services to assure that funds available for the coverage of infants and pregnant women under the state medical assistance program also are available for the benefit of eligible infants and pregnant women who receive health benefit coverage through the Partnership.
• 
  
  
  
  

In addition to the items listed as activities the Partnership shall do, it also may provide a mechanism for direct subsidies to low or modest wage employees of employers who acquire coverage through a direct contract with a carrier rather than through the Partnership, and for supplemental benefit plans as described in the bill.

The Department of Social and Rehabilitation Services is charged to investigate and pursue all possible policy options to bring into the Partnership Title XIX and Title XXI eligible families of an employee employed by a small employer. Further, the Department is to develop and seek federal approval of any appropriate variance or state plan amendment for the state children's health insurance program (HealthWave) and the state medical assistance program required to accomplish the purposes of the act.

Background

SB 668 originated from discussions among the Chairpersons of the Senate Committees on Public Health and Welfare, Financial Institutions and Insurance, and Commerce who, with other members of the Committees, met to explore the possibilities of expanding health care coverage to small employers. Of particular concern were the low or modest wage employees of the small employers. Senator Praeger explained that the bill allows employers to pool their employees to offer a choice of health plans; provides a mechanism for subsidies to assist families in purchasing insurance through an employer; and builds on the concept of employer-based insurance coverage.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html