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 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


February 22, 2022


The Honorable Steven Johnson, Chairperson
House Committee on Insurance and Pensions
Statehouse, Room 218-N
Topeka, Kansas 66612
Dear Representative Johnson:
SUBJECT: Fiscal Note for HB 2637 by House Committee on Insurance and Pensions
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2637 is
respectfully submitted to your committee.
HB 2637 would establish the Health Maintenance Organization Preauthorization
Exception Act. The bill would establish an exemption for certain physicians and other providers
from certain preauthorization requirements when providing certain healthcare services. The bill
details the period of time when physicians or providers would be exempt from preauthorization.
HB 2637 also details the parameters under which a health maintenance organization or insurer
could resend an exemption from preauthorization requirements. Under the provision of the bill, a
health maintenance organization could not deny or reduce payment to a physician or provider for
healthcare services when a physician or provider qualified for an exemption. The bill would not
allow a health maintenance organization or insurer to conduct a retrospective review unless certain
exceptions are met.
The Board of Healing Arts indicates that there would be a negligible effect to the agency’s
operations because the bill could increase complaints and investigations. However, those increases
would be absorbed within existing resources.
The Kansas State Board of Nursing indicates that information regarding the provisions of
the bill would need to be communicated to nurses. However, the information would be
communicated through venues the agency currently has in place and therefore any additional
implementation expenditures would be absorbed within existing resources.
The Honorable Steven Johnson, Chairperson
Page 2—HB 2637

The Insurance Department, Board of Optometry, Board of Pharmacy, Kanas Dental Board,
and Kansas Department of Health and Environment all state that the bill would not have a fiscal
effect. Any fiscal effect associated with HB 2637 is not reflected in The FY 2023 Governor’s
Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Bobbi Mariani, Insurance
Susan Gile, Board of Healing Arts