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


January 23, 2020


The Honorable Robert Olson, Chairperson
Senate Committee on Financial Institutions and Insurance
Statehouse, Room 236-E
Topeka, Kansas 66612
Dear Senator Olson:
SUBJECT: Fiscal Note for SB 249 by Senator Holland, et al.
In accordance with KSA 75-3715a, the following fiscal note concerning SB 249 is
respectfully submitted to your committee.
SB 249 would create the Kristi L. Bennett Mental Health Parity Act, which would require
health insurers to expand coverage of treatment of mental illness and substance use disorder. For
patients who have substance use disorder, are afflicted with suicidal ideation, or are actively
suicidal, the bill would require health insurers to provide coverage without the imposition of prior
authorization, concurrent review or retrospective review or other forms of utilization review for
the first 14 days of medically necessary inpatient and 180 days of medically necessary outpatient
treatment and services provided in-network.
For any inpatient treatment, a health insurer must provide all necessary network exceptions
to ensure that the patient is admitted to a treatment facility within 24 hours if there is no in-network
facility immediately available for a covered person. Providers who treat patients could not require
prepayment of medical expenses during the first 14 days of inpatient and the first 180 days of
outpatient treatment and services provided in-network in excess of any applicable co-payment,
deductible or co-insurance under the health benefit plan.

Estimated State Fiscal Effect
FY 2020 FY 2020 FY 2021 FY 2021
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- -- $884,941
FTE Pos. -- -- -- --
The Honorable Robert Olson, Chairperson
Page 2—SB 249

The Kansas Department of Health and Environment (KDHE) estimates that expanding
mental illness and substance use disorder benefits would increase expenditures for the State
Employee Health Plan (SEHP) by $884,941 from special revenue funds in FY 2021. The
Department’s estimate assumes plan expenditures would increase by $0.99 per member per month.
As of January 1, 2020, there were 74,490 members. Total monthly expenditures would be $73,745
($0.99 per member per month X 74,490 members), resulting in full FY 2021 costs of $884,941
($73,745 per month X 12 months). KDHE estimates expenditures of $933,613 from special
revenue funds in FY 2022, which includes a 5.50 percent increase due to medical expenditure
trends.
The Kansas Insurance Department indicates the bill would have no fiscal effect on
Department operations. Any fiscal effect associated with SB 249 is not reflected in The FY 2021
Governor’s Budget Report.


Sincerely,

Larry L. Campbell
Director of the Budget


cc: Bobbi Mariani, Insurance
Dan Thimmesch, Health & Environment
Connie Hubbell, Aging & Disability Services
Kim Holter, Children & Families


Statutes affected:
As introduced: 40-2, 40-22a01, 40-22a12