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


January 30, 2023


The Honorable Jeff Longbine, Chairperson
Senate Committee on Financial Institutions and Insurance
300 SW 10th Avenue, Room 546-S
Topeka, Kansas 66612
Dear Senator Longbine:
SUBJECT: Fiscal Note for SB 16 by Senate Committee on Financial Institutions and
Insurance
In accordance with KSA 75-3715a, the following fiscal note concerning SB 16 is
respectfully submitted to your committee.
Currently, the Pharmacy Benefits Manager (PBMs) Licensure Act does not apply to a
pharmacy benefits manager that holds a certificate of registration as a third-party administrator
(TPA). SB 16 would no longer exempt PBMs that are also a TPA.
The Kansas Insurance Department states that there are TPAs that might want to submit a
PBM application if this bill were enacted. The agency estimates that three TPAs will submit a
PBM application at the beginning of FY 2024 at a cost of $2,500, which would have a renewal
date of March 31, 2024, at a cost of $2,500. Therefore, the Department would receive $15,000 (3
X $5,000) into its PMB Licensure Fund in FY 2024. Any fiscal effect associated with SB 16 is
not reflected in The FY 2024 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Bobbi Mariani, Insurance Department
Alexandra Blasi, Board of Pharmacy


Statutes affected:
As introduced: 40-3821, 40-3810