Bill Summary – FastDemocracy

Division of the Budget
Landon State Office Building                                                                         Phone: (785) 296-2436
900 SW Jackson Street, Room 504                                                                      larry.campbell@ks.gov
Topeka, KS 66612                                Division of the Budget                              http://budget.kansas.gov
Larry L. Campbell, Director                                                                        Laura Kelly, Governor

                                                  February 12, 2019

         The Honorable John Barker, Chairperson
         House Committee on Federal and State Affairs
         Statehouse, Room 285-N
         Topeka, Kansas 66612
         Dear Representative Barker:
                   SUBJECT:       Fiscal Note for HB 2107 by House Committee on Federal and State Affairs
                 In accordance with KSA 75-3715a, the following fiscal note concerning HB 2107 is
         respectfully submitted to your committee.
                 HB 2107 would require health benefit plans issued on or after January 1, 2020, that include
         coverage for contraceptives to allow an insured person to receive a 12-month supply of a
         prescribed contraceptive at one time. The health benefit plan would provide full reimbursement
         at the time the prescription would be received by the insured. In addition, the amount of
         reimbursement would be for the total amount the insured is obligated to pay for the prescription.
                 The Kansas Department of Health and Environment indicates that enactment of HB 2107
         would have a fiscal effect on expenditures for those covered by Medicaid. Medicaid already covers
         all costs of contraceptives for the insured, but does not cover up to a 12-month supply at once.
         The Department estimates the fiscal effect would be $173,794 from all funds and $70,978 from
         the State General Fund for FY 2020. This estimate is based upon an average cost of $15.35 per
         member per month for 22,638-member months. The Department also indicates that enactment of
         the bill would have a fiscal effect on the State Employee Health Plan (SEHP). The Department
         estimates that 1,410 patients currently receive 90 day or less supply of contraceptives. SEHP
         estimates additional expenditures of $11,635 for FY 2020 if some of those patients started
         receiving a full-year supply. Any fiscal effect associated with HB 2107 is not reflected in The FY
         2020 Governor’s Budget Report.

                                                              Sincerely,

                                                              Larry L. Campbell
                                                              Division of the Budget
         cc: Glenda Haverkamp, Insurance
             Dan Thimmesch, Health & Environment
Statutes affected: 
As introduced: 40-2, 40-19c09, 40-2407, 40-2411