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 27, 2019


The Honorable Fred Patton, Chairperson
House Committee on Judiciary
Statehouse, Room 519-N
Topeka, Kansas 66612
Dear Representative Patton:
SUBJECT: Fiscal Note for HB 2348 by House Committee on Judiciary
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2348 is
respectfully submitted to your committee.
HB 2348 would increase the liability limits for the Health Care Stabilization Fund.
Currently health care providers have three options for the liability limits on coverage they
purchase. The bill would require that beginning on July 1, 2019 there would only be one option.
Current law allows health care providers purchasing malpractice coverage from the Health
Care Stabilization Fund to choose between three options or levels of coverage. HB 2348 would
allow only one level of coverage which is 18 times the lowest current option and 2.25 times the
highest current option. The agency indicates that the fund would collect more revenue from the
higher surcharges and expenditures would increase if the change resulted in larger judgements and
settlements. The costs for attorney services are also likely to increase. The increases in revenue
and expenditures cannot be estimated without an actuarial study. Any fiscal effect associated with
HB 2348 is not reflected in The FY 2020 Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget

cc: Clark Shultz, Health Care Stabilization Fund


Statutes affected:
As introduced: 40-3403, 40-3403a, 40-3404, 40-3414, 40-3424, 65-28