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
Adam Proffitt, Director Laura Kelly, Governor


January 20, 2021


The Honorable Steve Johnson, Chairperson
House Committee on Insurance and Pensions
Statehouse, Room 276A-W
Topeka, Kansas 66612
Dear Representative Johnson:
SUBJECT: Fiscal Note for HB 2073 by House Committee on Insurance and Pensions
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2073 is
respectfully submitted to your committee.
HB 2073 would create the Kristi L. Bennett Mental Health Parity Act, which would require
health insurers to expand coverage for 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, 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 2021 FY 2021 FY 2022 FY 2022
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- -- $872,112
FTE Pos. -- -- -- --
The Honorable Steve Johnson, Chairperson
Page 2—HB 2073

The Kansas Department of Administration estimates that expanding mental illness and
substance use disorder benefits would increase expenditures for the State Employee Health Plan
(SEHP) by $872,112 from special revenue funds in FY 2022. The Department’s estimate assumes
plan expenditures would increase by $0.99 per member per month. As of January 1, 2021, there
were 73,410 members. Total monthly expenditures would be $72,676 ($0.99 per member per
month X 73,410 members), resulting in full FY 2022 costs of $872,112 ($72,676 per month X 12
months). The Department estimates expenditures of $920,078 from special revenue funds in FY
2023, which includes a 5.50 percent increase costs per member per month 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 HB 2073 is not reflected in The
FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Bobbi Mariani, Insurance
Jeff Scannell, Department of Administration


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