The bill enacts the Kansas Municipal Self-Funded Health and Prescription Drug Insurance Pool Act, which establishes regulations for municipal self-funded medical and prescription drug insurance pools. It amends existing statutes K.S.A. 12-2618, 12-2620, and K.S.A. 2025 Supp. 12-2620, while repealing previous versions of these sections. Key provisions include requirements for applications to operate a pool, such as submitting bylaws, financial statements, and evidence of adequate funding to cover claims. The bill mandates that pools maintain a reserve equal to the greater of 20% of annual claims liability or $4,000,000, which must be reviewed annually by an actuary.

Additionally, the bill outlines the reporting requirements for these pools, including the submission of annual statements detailing claims paid, reserve fund balances, and administrative expenses. It also specifies that any municipal insurance pool providing medical and prescription drug coverage must demonstrate that it is funded to cover its maximum exposure for annual claims liability. The bill aims to ensure the financial stability and compliance of municipal self-funded insurance pools in Kansas.

Statutes affected:
As introduced: 12-2620, 12-2618, 12-2621