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Minutes for SB94 - Committee on Ways and Means

Short Title

Increasing the health maintenance organization privilege fee and extending the medical assistance fee fund.

Minutes Content for Wed, Feb 8, 2017

Chairperson McGinn continued the hearing on SB 94.

Keith Wisdom urged the Committee to oppose the bill due the increase itself and the retroactive aspect of the increase.  This is not in the best interest of the Kansans who rely on HMOs for their care.  The retroactive increase means they cannot build it into their rates to their customers.  Mr. Wisdom responded to questions from Committee members.  (Attachment 2)

Brad Smoot opposes the bill as currently written.  The 2107 rates were set ten months ago so the retroactive aspect would cause losses to all the insurance companies.  The tax burden for HMOs will be about $19 million per year.  At a minimum, he requests removal of the retroactive portion of the bill, which would allow them to build the increase into their rates or move insured to other products.  Mr. Smoot responded to questions from Committee members.  (Attachment 3)

There being no further conferees, Chairperson McGinn closed the hearing on SB 94.

Chairperson McGinn adjourned the meeting at 11:35.  The next meeting will be held on February 13, 2017.