The bill proposes a comprehensive restructuring of the administration of the state employee health benefits plan and the state workers' compensation self-insurance fund in Kansas. It transfers all powers, duties, and functions of the division of the state employee health benefits plan from the Department of Administration to the Insurance Department, under the direction of the Commissioner of Insurance. This transition includes the transfer of relevant employees, who will maintain their classified status, retirement benefits, and leave balances. The bill ensures that existing rules and regulations will remain effective until amended or repealed, and it clarifies that ongoing legal actions involving the former division can continue under the Insurance Department. Financial provisions are also included to ensure that funds appropriated for these programs are properly transferred for their intended purposes.

Furthermore, the bill amends various sections of Kansas law to reflect these changes, specifically replacing the "secretary of health and environment" with the "commissioner of insurance" in multiple instances, thereby shifting oversight responsibilities. It outlines the components of the state workplace health and safety program, which includes hazard surveys, prevention services, and employee training. Claims for compensation against state agencies are directed to the state workers' compensation self-insurance fund, with the commissioner of insurance responsible for investigating and settling claims. Additionally, the bill establishes the Kansas state employees health care commission, chaired by the commissioner of insurance, which will manage budgeting and purchasing functions related to state employee health care. A technical administrator position is also created to assist the commission, emphasizing the commissioner’s role in overseeing health care benefits. The act is set to take effect on July 1, 2027.

Statutes affected:
As introduced: 44-512, 44-575, 44-577, 44-578, 75-6502, 75-3223, 75-6503
As Amended by House Committee: 44-512, 44-575, 44-577, 44-578, 75-6502, 75-3223, 75-6503, 75-37