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 19, 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 2324 by House Committee on Insurance and Pensions
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2324 is
respectfully submitted to your committee.
HB 2324 would establish a $100 maximum out-of-pocket cost share obligation per month
per covered person for prescription insulin beginning January 1, 2022. The provision would apply
to large group or individual health insurance policies; health benefit plans; medical service plans;
contracts; hospital service corporation contracts; hospital and medical service corporation
contracts; fraternal benefit societies; and health maintenance organizations. The provision would
also apply to the state employee healthcare benefits plan.

Estimated State Fiscal Effect
FY 2021 FY 2021 FY 2022 FY 2022
SGF All Funds SGF All Funds
Revenue -- -- -- --
Expenditure -- -- -- $55,500
FTE Pos. -- -- -- --
The Department of Administration estimates the bill would increase costs to the State
Employee Health Plan by $55,500 from special revenue funds in FY 2022. The estimate assumes
a first-year annual cost increase of $111,000. However, because the maximum out-of-pocket cost
share obligation would not go into effect until January 1, 2022, only half of the annual cost would
apply to FY 2022. The Department estimates the cost would increase to $120,435 in FY 2023
which assumes a cost and usage increase of $9,435 or 8.5 percent.
The Honorable Steve Johnson, Chairperson
Page 2—HB 2324

The Kansas Insurance Department indicates the bill would have no fiscal effect on
Department operations. Any fiscal effect associated with HB 2324 is not reflected in The FY 2022
Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

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