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 C. Proffitt, Director Laura Kelly, Governor


March 18, 2024


The Honorable William Sutton, Chairperson
House Committee on Insurance
300 SW 10th Avenue, Room 218-N
Topeka, Kansas 66612
Dear Representative Sutton:
SUBJECT: Fiscal Note for HB 2752 by House Committee on Insurance
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2752 is
respectfully submitted to your committee.
HB 2752 would enact the Dental Loss Ratio Act. The bill would define “dental loss ratio”
as the percentage of premium dollars collected each year for a dental benefit plan that the plan
incurs on clinical dental services provided to an insured, separate from overhead and
administrative costs. Every dental benefit plan would be required to file a dental loss ratio annual
report with the Kansas Insurance Department that would be subject to the Kansas Open Records
Act. Starting July 1, 2025, the required dental loss ratio would be 85.0 percent. The bill would
require that by each July 1, carriers offering dental benefit plans would file group product base
rates and any changes to the group rating factors that would become effective on January 1. The
Department would disapprove any proposed changes to base rates that are excessive, inadequate,
or unreasonable in relation to the benefits charged. The Department would also disapprove any
changes to group rating factors that are discriminatory or not actuarially sound. The bill further
details other instances when the Department would disapprove rates changes and provides steps a
carrier would take to notify those covered under the group of the disapproval and steps the
Department would take to notify the carrier and hold public hearings.
If the dental benefits plan dental loss ratio percentage is less than the required dental loss
ratio percentage, the dental benefit plan would return the dollar amount reflecting the monetary
difference between the required dental loss ratio percentage and the dental benefit plan's actual
dental loss ratio percentage in the form of a rebate. Rebates would be issued on a pro rata basis to
individuals insured. However, if the rebate is returned to the plan administrator, then the entire
amount of the rebate would be used to defray the premiums of the insureds enrolled in the dental
The Honorable William Sutton, Chairperson
Page 2—HB 2752

plan next year. The Insurance Commissioner could adopt rules and regulations necessary to
implement and administer the Act. The Act would not apply to health benefit plans for healthcare
services under Medicaid, the Children's Health Insurance Program, or any other state-sponsored
health program.
The Kansas Insurance Department, the Kansas Dental Board, the Department of
Administration, the Department for Aging and Disability Services, and the Department of Health
and Environment all state that the bill would not have a fiscal effect on their operations. Any fiscal
effect associated with HB 2752 is not reflected in The FY 2025 Governor’s Budget Report.

Sincerely,

Adam C. Proffitt
Director of the Budget


cc: Bobbi Mariani, Insurance Department
Charity Carlat, Kansas Dental Board
Tamara Emery, Department of Administration
Amy Penrod, Department of Health & Environment
Leigh Keck, Department for Aging & Disability Services