The Senate Committee on Financial Institutions and Insurance voted Feb. 17 to pass Senate Bill 121 as amended. Committee staff described SB 121 as a technical, accreditation-related bill that would adopt provisions from an NAIC model and provide language to exempt certain self-funded health plans from classification as regulated "health benefit plans."

Eileen, committee advisor, summarized the bill as a technical measure ‘‘that authorized the commissioner of insurance to [make] certain instructions, calculations, and documents’’ and said it would adopt group capital calculation and liquidity stress-testing provisions from an NAIC model. She noted the bill has multiple technical elements beyond accreditation.

Two amendments were adopted before the committee voted on final passage. The first amendment restored the word “material” in a line of the bill at the department’s request; Senator Francisco moved that amendment and it passed by voice vote. The second amendment inserted text into KSA 40-202 and a corresponding change at KSA 40-4602 to add explicit exemptions: the bill, as amended, exempts a self-funded health plan established or maintained for employees by the state or a subdivision of the state, a school district, any public authority, a county or city government (or any political subdivision, agency or instrumentality thereof), and a self-funded plan established or maintained for employees by a church or by a convention or association of churches that is exempt from tax under section 501 of the Internal Revenue Code.

Committee members said the second amendment addresses concerns raised by self-funded hospital entities and other public employers who testified. One member asked whether entities present at the hearing would also concur; the member said the amendment addressed those concerns.

Formal action: The committee adopted both amendments and then voted to pass SB 121 as amended favorably for passage out of committee. Senator Gossage moved final passage; Senator Fagg seconded. The committee passed the bill by voice vote.

What it does and what it does not: As amended, SB 121 leaves in place technical accreditation provisions and explicitly adds the listed exemptions for self-funded plans. The bill does not, in committee discussion, change other statutory obligations for insurers beyond the specific insertions described above.

Next steps: SB 121 was reported favorably and will go to the Senate floor for further consideration.