Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


February 10, 2021
CORRECTED

The Honorable Steve Johnson, Chairperson
House Committee on Insurance and Pensions
Statehouse, Room 276A-W
Topeka, Kansas 66612
Dear Representative Johnson:
SUBJECT: Corrected Fiscal Note for HB 2129 by House Committee on Insurance and
Pensions
In accordance with KSA 75-3715a, the following corrected fiscal note concerning HB 2129
is respectfully submitted to your committee.
HB 2129 would require that commencing in plan year 2022 the Kansas State Employee
Health Care Commission (KSEHCC) would implement coverage for tobacco cessation benefits
for enrollees in the State Health Care Benefits Program. The bill specifies what those benefits
would be.
The KSEHCC would not be allowed to impose any lifetime limit, prior authorization, or
cost-sharing requirement for the receipt of benefits. On or before March 1, 2023, the KSEHCC
would be required to submit a report to the Legislature regarding the coverage specified in the bill.

Estimated State Fiscal Effect
FY 2021 FY 2021 FY 2022 FY 2022
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- -- $35,500
FTE Pos. -- -- -- --
The Department of Administration estimates enactment of HB 2129 would increase costs
to the State Employee Health Plan by $35,500 from special revenue funds in FY 2022. The
estimate assumes a first-year annual cost increase of $71,000. However, because the bill’s
provisions would not go into effect until January 1, 2022, only half of the annual cost would apply
The Honorable Steve Johnson, Chairperson
Page 2—HB 2129

to FY 2022. In the original fiscal note, the amount listed that was needed for FY 2022 expenditures
was incorrectly reported to be $71,000. Of that amount, $61,000 would be for physician fees and
$10,000 would be for drug costs. According to the State Employee Health Plan, this is a one-year
pilot program. The Department estimates the cost would increase to $75,205 in FY 2023. Of that
amount, $64,355 would be for physician fees and $10,850 would be for drug costs. Any fiscal
effect associated with HB 2129 is not reflected in The FY 2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Jeff Scannell, Department of Administration